Reply to Who can afford 800K-1M homes? Genuine Curiosity!

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Two professionals (one JD, one masters) working in the public sector, early 30s.  HHI $200k+.  Bought a house ($650k) in an urban, up and coming area (U Street) in 2008 that has appreciated enough to sell and buy a $1.2 million + house in the suburbs (Potomac).[/quote]

Really?  In 2008?  It seems like you would have to be very lucky to have made 200K, so you put that down and have 1m mortgage on 200K salary?  Just curious.[/quote]

They said the house appreciated.  They never said how much they put down.  Say they were able to put down anywhere from 20-40%.  That's $130K-$260K plus the profit.  Given your estimate of $200K, that's ballpark $400K.  They also didn't say if they were putting any more of their savings into the house, but let's face it, if the jobs are secure and they have $400K to put down, there are very few banks that would not grant a jumbo loan for $800K under those circumstances.  We're talking 30-35% down payment.  As far as banks are concerned, that's significantly safer than probably 50% of the buyers out there right now.[/quote]

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