What You Need to Make to Buy a Home in Chicago

Posted by Helaine Cohen on Wednesday, September 14th, 2016 at 10:41am.

Chicago Real EstateWhile mortgage rates are currently low, prospective homeowners still likely need to meet a certain income threshold in order to afford a home. According to the mortgage information website of HSH.com, that’s currently $52,700 per year. Based on HSH research that is what’s necessary to be able to pay for a home worth $240,700, the national median price of homes.

The average salary needed to buy a home is up about five-percent from what it was two years ago. It gets a bit trickier when looking at cities where home prices are increasing at a quicker rate than wages. In Chicago analysts predict prospective homebuyers need to make slightly more than $62,455. Other cities, like Seattle, San Francisco, Los Angeles and Denver top that amount, while big cities like Atlanta, Dallas and Baltimore come in lower.

The amount needed for a down payment depends on several factors, including the individual buyer. While not everyone has to come up with 20-percent for a down payment, making a lower down payment usually means mortgage insurance, which translates to a higher monthly mortgage and a slightly higher salary needed to afford the home comfortably.

Helaine Cohen, Chicago Real Estate Broker

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