% of income for Primary residence?

[Lance H.]

Hi everyone!

I'm considering purchasing a new primary residence in the near future. In my opinion banks are still way to generous on how big of a loan they will allow. I'm just curious, what do you all think is a reasonable percentage of take home pay to spend on housing?

Thanks!

[Bryan Hancock]

The rule of thumb that is pushed by those with an agenda is 2.5X your income. I think something more like 1.5X is more suitable.