Find A California Home For $150,000 Or Less
Malka Crickenberger
Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible.
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But the exact amount of house you can buy will vary depending on the rest of your financial situation, chosen location and preferred property, as well as prevailing mortgage rates. Take the time to better understand how much home you can afford based on credit score, debt-to-income ratio, down payment and more.
The 28/36 rule is a commonly used personal finance formula that breaks down your gross monthly income and estimates how much you can afford monthly in total debts, including housing expenses. This rule of thumb recommends that you spend no more than 28 percent of your income on your housing expenses and not exceed 36 percent of your income on total debt payments.
Your debt-to-income ratio can be calculated by dividing your total monthly debt payments by your total gross monthly income. This number helps lenders decide whether you will be able to repay your loan on time and make your monthly payments. The higher your DTI, the more difficulty you may have in paying your monthly debts, as there is less wiggle room for error in the event of poor budgeting or an emergency. The lower your DTI, the more lenders view you as a reliable borrower.
Although there are loan programs that allow buyers to claim a home for little to no money down, conventional loan lenders prefer that you make a down payment of at least 20 percent. This is also the threshold to avoid private mortgage insurance (PMI). The lower your down payment, the higher your monthly mortgage payment.
Depending on the state where you live, there may be a number of first-time homebuyer programs available. These often have income limits, though, so with a $150,000 salary, you may not qualify. If you do qualify, however, you may be able to receive down payment assistance in the form of a second loan or a grant. Some areas also have closing cost assistance programs.
Probating a will can be both a time-consuming and an expensive process. These are two reasons that the California Probate Code 13050 has created a procedure that allows a beneficiary to inherit a small estate without jumping through all the hoops of a formal probate proceeding. Preparing a small estate affidavit in California is simple and fast.
Because this process is only for small estates, the total estate must be worth $150,000 or less. This process is not to be used for transferring title to real property (such as a home), although the value of real and personal property of the deceased is included in the calculation. To determine if your loved one's estate qualifies, you need to total all the property they owned and add in any life insurance or retirement benefits that are paid to the estate (not those that are payable to another person).
You're entitled to use the small estate procedure if you have a legal right to inherit from the deceased. People who qualify include a beneficiary in the deceased's will and the guardian or conservator of the estate.
If the deceased died without a will (intestate), then you must be someone who has a right to inherit under the state intestacy inheritance law (spouse, child, or possibly other relatives if no spouse or child exists).
1. Obtain and complete the California small estate affidavit. You must obtain the form used by the probate court in the county where the deceased was a resident. You can obtain it in person or by accessing your court's self-help center online and downloading the form there. Follow the instructions on the form to complete it.
3. Obtain other signatures. If anyone else is legally entitled to inherit from the deceased, they must sign the affidavit, agreeing to let you inherit all of the property you have listed.
4. Get the documents notarized. While the state of California does not require you to get the form notarized, you will need to present the document to financial institutions to get the deceased's property transferred, and they will require that it be notarized.
5. Transfer the property. You must wait until 40 days after the date of death to take the affidavit and attachments to any person or company holding the property you are seeking to have transferred to you.
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