Tagged: California Housing Market, Chad Bush
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How Can Homebuyers Afford a House in California
Posted by Ramon on July 30, 2024 at 3:11 amFrom what I understand, average home prices in Los Angeles and Orange County California is $1.5 million. If a recent college graduate from University of California Los Angeles with a $80,000 a year salaried professional job and his fiance who is a registered nurse making $70,000 a year got married, can they qualify and get pre-approved for a mortgage to purchase an average 3 bedroom, 2 bathroom, one car garage house in either Los Angeles or Orange County, California? What will be a strategy for them to become first-time homebuyers. Are they priced out of the housing market? Do they need to rent? They each have a $800 per month car payment.
Gustan replied 3 months, 1 week ago 4 Members · 8 Replies -
8 Replies
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Ramon, the best person to answer is Chad Bush. Chad Bush is a dually licensed realtor and loan officer. Chad and his wife own a house in Orange County California which is mega bucks homes. Young couple both working full time. Also, check out the California Mortgage Calculator.
https://gustancho.com/california-mortgage-calculator/
gustancho.com
California Mortgage Calculator | How Much House Can I Afford
The California Mortgage Calculator will get you the most accurate monthly mortgage payment which includes the PITI, MIP, and DTI
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Not all areas in California is high priced million dollar homes. There are counties of California with reasonable home prices like Chico, Stockton, Bakersfield, and West Sacramento. Orange County California and Los Angeles County are high cost areas. FHA and Conforming loan limits in Orange and Los Angeles County is $1,148,825 on single-family homes.
https://gcaforums.com/fha-loan-limits/
- This reply was modified 3 months, 1 week ago by Lori.
gcaforums.com
FHA Loan Limits: Great Content Authority (GCA) Forum
HUD, the parent of FHA, sets the new FHA loan limits for standard, and high-cost areas in the U.S. FHA follows FHFA on Conforming loan limits.
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When shopping for a house, ask yourself how much house can I afford and not how much house do I qualify. Here’s the loan limit on conventional loans plug-in. You can go up to $1,149,250 on conventional loans on single-family homes in Orange County and Los Angeles County California.
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The median sales price of a home isn’t quite $1.5 million. In Orange County, it’s closer to $1.2 million, and in Los Angeles County, it’s about $900,000. And not all cities have such high prices either. For example, in Orange County, cities like Anaheim and Santa Ana offer more reasonably priced homes.
However, even in these more affordable areas, a combined salary of $150,000 might still make it challenging to find a 3-bedroom, 2-bathroom, single-family home with a garage. It might be worth considering smaller options, such as condos or townhomes, which tend to be less expensive.
Paying off car loans before purchasing a home could also significantly lower the debt-to-income ratio, allowing them to qualify for a larger loan. Additionally, considering a government-backed loan, particularly a VA loan if eligible, could be a beneficial option when it comes to financing a home.
Overall, you’re right that home prices in Orange County and Los Angeles County are quite high, which can limit options for new homeowners. However, if the couple is willing to be flexible with home size and location, there are still viable options. Starting with a smaller home and upgrading later as income increases is also a good strategy.
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Thanks, Chad for a hands on insight on buying a home in Orange and Los Angeles, County California. I used to be a regional Vice President of a stock brokerage firm and was relocated to Marina del Rey, California back in 1989 until 1992. I rented a two bedroom, two bath condo in Marina del Rey, California, which is Los Angeles County. I actually remember the condo complex, Mariners Village located at 4652 Via Marina, in Marina del Rey. Just ten minutes from the airport. My office was located at 5777 Century Boulevard right across Los Angeles International Airport, which I can see jets launching and taking off from my 17th Floor Office. My lease on my rental unit was $3,500 per month. I got transferred to Scottsdale, Arizona first before getting transferred to Los Angeles. The same sized condo in Scottsdale, Arizona, the rent was $800.00. Home prices in Los Angeles area during the time I lived there was averaging $500,000 compared to $180,000 in Scottsdale, Arizona. My daughter Monica was born in Little Company of Mary Hospital in Torrance. One thing about home prices in Orange County and Los Angeles County is it will never plummet because of California regulations. Unlike other states, it is very difficult to build and develop homes throughout the entire state due to strict environmental and zoning regulations. Also, everything in California is expensive including taxes. On the flipside, most wage earners make a lot more in California than other states. The state if gorgeous and the state is so diversified with killer weather, great beaches, top universities, and many opportunities. Lots of foreign money being rolled into California. Post pandemic, many workers converted to remote workers. Many remote wage earners who did not have an opportunity to ever own a home because they were priced out of the housing market can now exit California to other states with affordable housing. I know friends who are remote workers and many loan officers who can live in any state they want who will NEVER leave California. One of my buddies is from Milwaukee Wisconsin said he loves living in Sacramento and will never leave California. His thing is the gorgeous weather. He is willing to pay the higher taxes, gas prices, high cost of living, and asinine regulations and law. Chad, what is your reason for loving the state. You can live in any state you want since you and your wife are remote wage earners. By the way, appreciate your advice about looking at other housing options besides single-family homes. I know there are many counties with reasonable affordable housing too. Thanks again.
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I love living in Orange County for a number of reasons. You really can’t beat the weather. It is beautiful all year round. And it is close to everything. San Diego, Santa Barbara, LA, Big Bear are all a relatively short drive away, which is great for an avid outdoors person like myself. The beach as well as a ton of hiking spots are also only 15 minutes down the road , when we’re not looking to do a short road trip. My wife also loves all the restaurant options. There is definitely a lot of good food to choose from.
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You nailed it. I love Koreatown in Los Angeles. California is so racially and ethnically diverse and really miss it. There’s a reason why people pay a premium living in Orange County on a million dollar home versus in Inbredville, Arkansas in a $90,000 double wide with chicken shacks and goats as pets. Lol. Love it. Your reasoning behind it is spot on and it is the responses I get. I will tell you, you Californians need normal people to run the state and get this clown Gavin Newscum out of office. The son of a bitch wants little children to have confidentiality from their parents knowing if they want a sex change. The child can tell their teacher and principal and the school staff cannot let the parents know. Fuck Him and have him get castrated. WTF is he thinking. A total creep. God created man and woman and nothing in between. People who are confused on weather to cut off the peep do not need equal rights. They need mental illness and psychological help. They need to tune up their chromosomes and hormone tune up. I don’t want to start this because I get upset. When I was growing up and in school, none of this shit was public. The buck stops with people being gay (homo, lesbian). Not transgender or dragon queen.
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Here is a blog written by Chad Bush about the California Housing Market Forecast for 2025. @chadbush
https://gustancho.com/california-housing-market-forecast/
gustancho.com
California Housing Market Forecast For 2025
California Housing Market Forecast for 2025 is expected to be strong despite many Californians fleeing the state due to incompetent leadership