patrick.net

"The lender must calculate what the borrower's payment would be at the highest rate and make sure the borrower's total debt payments (including principal, interest, taxes, insurance and payment on other debt) does not exceed 43 percent of monthly gross income."

Wow! Well, when people are willing to live like that to buy a house, that pretty much tells me why I won't buy one.

OMG! I can't believe what I'm reading, but knew it had to be this way.

"The 43 percent debt-to-income ratio could be a hindrance in the Bay Area. Jay Voorhees, a mortgage broker with JVM Lending in Walnut Creek, says most of his clients exceed 43 percent."

43% of net paycheck for debt payments is what I would call BANKRUPTCY

At least if make $150k/year or so. Different if you make 1Mil/year, then you still got enough money left to buy food....

FunTime says

OMG! I can't believe what I'm reading, but knew it had to be this way.

"The 43 percent debt-to-income ratio could be a hindrance in the Bay Area. Jay Voorhees, a mortgage broker with JVM Lending in Walnut Creek, says most of his clients exceed 43 percent."

Its just the vested interest who want to defend high home prices.