I think they'll lend considerably more than that, though I'm not saying it's a good idea. Here's a link: http://www.sfgate.com/business/networth/article/Bay-A

I think they'll lend considerably more than that, though I'm not saying it's a good idea. Here's a link: http://www.sfgate.com/business/networth/article/Bay-Area-a-barometer-for-new-mortgage-rules-5118943.php http://www.sfgate.com/business/networth/article/Bay-Area-a-b... It sounds like they'll go up to 43% for a "jumbo loan" (thats not just mortgage), and according to the article, it can go higher if the buyer is strong in other ways. With interest rates for jumbo mortgages probably a bit above 4%, that would leave a two income household with 200-300K in income enough to purchase the median priced house. I'm not saying it's an appealing idea, just that it isn't impossible.