In a recent Herald front page article “Report: Housing costs, supply are getting dire in Snohomish County”, it was referenced,“at $1,889 per month, nearly half the county can’t afford the rent without being ‘cost burdened,’ spending more than a third of income on housing and utilities.” I believe these to be outdated statistics from the 1980s with regard to both renting or home ownership.
As a veteran lending adviser to first time and move-up buyers, our industry provides home loans with guidelines for housing expense of up to 45 percent or more, not including any utility costs.
Home buyers of today are not “cost burdened” at these percentages. Regulatory agencies Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) welcome these home loans delivered to them and consider them “A “paper loans with almost all homebuyers fulfilling the payment and obligation terms.
We need to update and truly clarify what “cost burdened” is and how it is defined in today’s economy.