What is the income will be considered to qualify to rent a $1400/mon house?

Asked by Kasa Li, elk grove, CA Mon Jun 11, 2012

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Kele Barragan, Agent, Elk Grove, CA
Mon Jun 11, 2012
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Typically, you want to see the gross income about 3x the rent, so $4200. If there's little to no credit card type debt, you can reduce a little. It's good to know they make enough to pay rent and other monthly obligations.
1 vote
James Tan, Agent, elk grove, CA
Tue Jun 12, 2012
I agree with Kelean . A ratio of 3x between income & rent is a good rule of thumb. If the rule is stretched it will inevitably lead to late payments later on.
1 vote
Jim Walker, Agent, Carmichael, CA
Mon Jun 11, 2012
I agree with Kelean B. 3 x is good. ( 33%)

2.5X may be sufficient if there additional factors in favor of allowing such a high housing expense ratio.
(40%)

If more than 50% of income goes to housing expense. Well that is quite a stretch for most people. I'd consider a ratio that high to be somewhat risky.
0 votes
Max Boyko, Agent, Sacramento, CA
Mon Jun 11, 2012
I recommend speaking to a lender. Typically they will want your debt payments below 50-55% of your income... that's usually a good number to use for your calculations.
0 votes
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