I do not know how they got financing for these mortgages, but many people are spending 1/2 their income on housing! Some areas in California, Florida, and Las Vegas are paying 50 to 58% of their pay for housing. Anything over 30 to 35% is too high, in my opinion and most lenders agree. I tell my buyer clients to try to keep house payment to one weeks take home pay (about 20% of their income). Doing this will allow them to furnish the home, take vacations and eat out on a regular basis. To me, there is little worse than being "house rich and cash poor". Everyone would like to have a McMansion but most are not happy when the house payments consume most of their pay. Keep it reasonable and you will be much happier in your new home, even if it does not measure up to your desires.