What makes a home affordable? One opinion could be simply whether a prospective buyer can afford to purchase the home based on his or her individual finances.
Before the market went crazy in 2003, there was a formula to determine whether or not a person could afford a home. Lenders strayed from this formula (for reasons I will not endeavor to explain here) but the good news is, the basic formula and idea of how to determine a person's affordability index is back!
What is affordable? The tried-and-true rule involves just a couple of ratios. The first is your debt-to-income ratio which should be no more than 36%. When figuring your housing payment-to-income ratio, it should be between 28% and 33%.
Using the calculator above, you can determine what your payment would be, and then determine whether it falls within your housing payment-to-income ratio. Don't forget that you'll need to include property taxes and insurance in your payment amount when figuring your ratio.
Just in case you thought there weren't very many affordable homes in the Carson Valley, we've included links to homes under $250,000 with 3+ bedrooms.
Affordable Homes in Gardnerville under $250,000 with 3+ bedrooms
Affordable Homes in Minden under $250,000 with 3+ bedrooms
To conduct a search of your own, simply click the Search MLS Listings below. Interest rates are low, and prices are the lowest they have been in the better part of a decade.
The market is changing and buyers are coming from surrounding states and out of town to take a closer look at the Carson Valley. Isn't it time you should, too?
Posted By: Christianne Gordon - Northern Nevada Real Estate Agent - Realtor with RE/MAX Realty Affiliates, specializing in Carson Valley Real Estate and Northern Nevada Real Estate.
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Christianne Gordon, REALTOR®, CDPE, SFR, , PSC, e-PRO
Certified Distressed Property Expert - Short Sales & Foreclosure Resource - Pre-Foreclosure Certified
RE/MAX Realty Affiliates - Great Nevada Homes, Inc.
Direct: (775) 881-8223
Visit us online at GreatNevadaHomes.com or CarsonValleyShortsales.com
The information in Christianne Gordon's blog is deemed accurate but not guaranteed. Any individual considering a short sale should also seek independent tax and legal advice to get specific information as it relates to their personal situation. Christianne Gordon is a licensed real estate agent with RE/MAX Realty Affiliates serving the entire Northern Nevada region including Reno, Sparks, Carson City, Washoe Valley, North Valleys, Fernley, Dayton, Stagecoach, Minden, Genoa, Gardnerville, Smith Valley and Yerington.
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