The Salary You’ll Need To Buy a Home In South Florida

Gene Petrino
Published on April 2, 2017

The Salary You’ll Need To Buy a Home In South Florida

According to the latest report by the National Associations of Realtors (NAR), South Florida (Miami-Dade/Fort Lauderdale) is the 19th Most Expense Housing Market in the country.  That’s great if you own a home, but could create a challenge if you’re trying to buy.  Let’s take a look at the salary you’ll need to buy a home in South Florida.

There are many factors that go into determining how much you can afford.  It’s not just how much you make, it’s also how much you owe.  Lender look at your Debt to Income ratio and use that percentage to qualify you for a mortgage.  Your monthly debt can have a huge impact on your ability to borrow.  That’s why it’s never a good idea to make any major purchases (car, furniture, etc.) while your in the home buying process.

When NAR conducted this survey, they looked at both the median salary of existing buyers in a specific area, and the median home values in a same area.  They also used 20% down payment, 3.9% interest rate, and 25% Housing Debt to Income to make their rankings.

Based on this factors, a home buyer in South Florida would need an annual salary of $56,764 to purchase a home with a value of $310,500 (median sales price in South Florida).  You can check the list of 23 most expensive markets in the nation and the salary you’ll need to buy there at the end of this article.

Of course, any change to those factors will affect the salary requirement.  So it should come as no surprise that the mortgage process often turns buyers into ostriches.  Let’s face it, having someone look at your financial situation is a bit like a visit to the proctologist!  So let’s break down the process so it doesn’t seem so overwhelming.

First, take a look at your credit.  There are many free resources out there that provide you with a copy of your credit history.  You’ll want to have a credit score of at least 660.  Don’t be discouraged if your credit score is lower than that.  There are many things you can do to improve it.  For example, paying down balance is less than 50% of the available credit.  Be careful of credit repair companies, however, as the majority of them can’t deliver what they promise.  Additionally, lowering your monthly debt will increase the impact on the salary you’ll need to buy a home.  Further information on cleaning up your credit can be found here.

Next, you’ll need to find a lender with a proven track record of helping home buyers.  Always ask your friends and family for a referral.  If no one has a recommendation, ask your real estate agent.  A good agent will have a strong relationship with a quality lender that will provide outstanding service.

Once you’ve found your lender comes the hard part…getting your documentation in order.  The standard documents your lender will ask you for are: 30 days of pay stubs, last 2 months bank statements, and last years tax return.  Every borrower is unique and may need to provide additional documentation.

With your documents in hand, now it’s time to apply for the mortgage.  Your lender will review everything and provide you with a pre approval letter that specifies how much your can afford.

The process should not be a scary thing and a good lender will always be there to answer your questions along the way.  Don’t get too hung up on the salary you’ll need to buy a home.  As you can see there are many factors that impact how much you can afford.  For more information on mortgage financing, click here.

For more information on buying a home, check out my Home Buyer’s Guide here.

If you’re thinking of buying and have questions, please feel free to contact me.  I’m always available and willing to give the no bull advice my clients have appreciated from me for over 19 years.

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Top 23 Most Expensive Housing Markets in the Nation and The Salary You’ll Need To Buy There

23. Salt Lake City, Utah

Salt Lake City has a population of 1,170,266 and a median home cost of $282,100.  The salary you’ll need to buy here is $51,572.

22. Austin-Round Rock, Texas

Austin-Round Rock has a population of 2,000,860 and a median home cost of $287,600.  The Salary you’ll need to buy here is $52,578.

21. Burlington-South Burlington, Vermont

Burlington-South Burlington has a population of 214,363 and a median home cost of $291,300.  The Salary you’ll need to buy here is $53,254.

20. Reno, Nevada

Reno has a population of 450,890 and a median home cost of $308,700.  The salary you’ll need to buy here is $56,435.

19. Miami-Fort Lauderdale-West Palm Beach, Florida

Miami-Fort Lauderdale-West Palm Beach has a population of 6,012,331 and a median home cost of $310,500.  The salary you’ll need to buy here is $56,764.

18. Riverside-San Bernardino-Ontario, California

Riverside-San Bernadino-Ontario has a population of 4,489,159 and a median home cost of $317,700.  The salary you’ll need to buy here is $58,081.

17. Sacramento-Roseville-Arden Arcade, California

Sacramento-Roseville-Arden Arcade has a population of  2,274,194 and a median home cost of 324,300.  The salary you’ll need to buy here is $59,287.

16. Portland-Vancouver-Hillsboro, Oregon/Washington

Portland-Vancouver-Hillsboro has a population of 2,389,228 and a median home cost of $354,700.  The salary you’ll need to buy here is $64,845.

15. Bridgeport-Stamford-Norwalk, Connecticut

Bridgeport-Stamford-Norwalk has a population of 948,053 and a median home cost of $359,800.  The salary you’ll need to buy here is $65,777.

14. Barnstable Town, Massachusetts

Barnstable Town has a population of 214,333 and a median home cost of $377,900.  The salary you’ll need to buy here is $69,086.

13. Denver-Aurora-Lakewood, Colorado

Denver-Aurora-Lakewood has a population of 2,814,330 and a median home cost of $381,600.  The salary you’ll need to buy here is $69,763.

12. New York-Newark-Jersey City, New York/New Jersey/Pennsylvania

New York-Newark-Jersey City has a population of 20,182,305 and a median home cost of $382,300.  The salary you’ll need to buy here is $69,891.

11. Washington-Arlington-Alexandria, Washington, DC/Virginia/Maryland

Washington-Arlington-Alexandria has a population of 6,097,684 and a median home cost of $384,300.  The salary you’ll need to buy here is $70,256.

10. Naples-Immokalee-Marco Island, Florida

Naples-Immokalee-Marco Island has a population of 357,305 and a median home cost of $415,000. The salary you’ll need to buy here is $75,869.

9. Boston-Cambridge-Newton, Massachusetts/New Hampshire

Boston-Cambridge-Newton has a population of 4,774,321 and a median home cost of $417,400.  The salary you’ll need to buy here is $76,307.

8. Seattle-Tacoma-Bellevue, Washington

Seattle-Tacoma-Bellevue has a population of 3,733,580 and a median home cost of $423,300.  The salary you’ll need to buy here is $77,386.

7. Boulder, Colorado

Boulder has a population of 319,372 and a median home cost of $494,800.  The salary you’ll need to buy here is $90,457.

6. Los Angeles-Long Beach-Glendale, California

Los Angeles-Long Beach-Glendale has a population of 10,170,292 and a median home cost of $503,400.  The salary you’ll need to buy here is $92,030.

5. San Diego-Carlsbad, California

San Diego-Carlsbad has a population of 3,299,521 and a median home cost of $593,000.  The salary you’ll need to buy here is $108,410.

4. Urban Honolulu, Hawaii

Urban Honolulu has a population of 998,714 and a median home cost of $740,200.  The salary you’ll need to buy here is $135,320.

3. Anaheim-Santa Ana-Irvine, California

Anaheim-Santa Ana-Irvine has a population of 3,169,776 and a median home cost of $745,200.  The salary you’ll need to buy here is $136,234.

2. San Francisco-Oakland-Hayward, California

San Francisco-Oakland-Hayward has a population of 4,656,132 and a median home cost of $837,500.  The salary you’ll need to buy here is $153,108.

1. San Jose-Sunnyvale-Santa Clara, California

San Jose-Sunnyvale-Santa Clara has a population of 1,976,836 and a median home cost of $1,005,000.  The salary you’ll need to buy here is $183,730.