[somedudethere]

Is it really "easy credit"? My coworker just got done with getting a mortgage in San Mateo and it really seemed like a long drawn out processes with significant hurdles in terms of paperwork and documentation along with a requirement to put down $300k on a $1mil house.

I've been told by several people that it is significantly harder to get a mortgage today than in 2007/2008.

Perhaps he was making it harder than it really is but a mortgage is the hardest consumer credit to get.

[toomuchtodo]

It's a bit harder, but not significantly. (Source: both my parents are mortgage underwriters).

Getting a mortgage is not terribly difficult. Both child support and unemployment income can be used to obtain a mortgage. It really depends who is going to buy the loan. If its Fannie or Freddie (government sponsored entities), you have to meet their criteria if they're to buy the loan from you after you've made it. If you're a lending institution who is going to hold and service the loan (local banks or credit unions) you have a lot more leeway in what your criteria is.

[nostromo]

Your coworker is very close to the "jumbo mortgage" limit on mortgage size. If you exceed this amount, it is much more difficult to get a mortgage, even with pristine credit.

https://en.wikipedia.org/wiki/Jumbo_mortgage

[SHIT_TALKER]

You are right, it is definitely harder than it was during the mid 2000s free-for-all. People are conflating "cheaper" with "easier" in this case. Just because rates are suppressed doesn't mean anyone can get a loan.

[arielweisberg]

I messed up using easy when I meant cheap.

But it's still easy enough to move the market. Cheap credit no one can get isn't going to have an impact.

When 2.5x median income doesn't buy the median house (or even close) there may be an issue. There isn't anything magical about the 2.5x number though, but IMO there is an upper limit on what is reasonable for people to spend on housing.