usctrojancpa
Well-known member
There's been a lot of talk about how Irvine home buyer incomes have to be $200k/yr+ to be able to buy an average home in Irvine and where they get their down payment funds. The reality is that most Irvine home buyers are NOT FCBs and don't have household incomes of $200/yr+. The demand for 4+ bedroom and 3+ bath homes in Irvine is high and is outstripping demand, so much so that prices are up 10%+ year-over-year. First off, you don't need a household income of $200k/yr+ if you are putting 50-100% down. When you loan amount is $1 - $400,000, you don't even need a $100k/yr income to qualify for the loan let alone a $200/yr income (remember that for every $100k borrowed is only worth a $537 monthly mortgage payment assuming a 5% interest rate). I currently have 6 Irvine buyers who fall into this category (looking to buy 4bed/3bath homes up to $900k) and none of them are FCBs. So the question that many will ask...where the heck do they get such huge down payment funds? Well, it comes from various places....mainly from the equity of the homes they sold near the peak, some from wise savings/investing, and some from assistance of their families (i.e. gift funds). That should help to explain by the median home price is out of wack from the median household income in Irvine and how buyers are able to afford them without the high incomes.