How can I afford a home in San Diego?

Question by eebspecial: How can I afford a home in San Diego?
I live in San Diego and have a good job. However, even with a good job it’s hard to buy a home in San Diego when the cheapest single family home is $ 400k. What are my options? forclosures? interest only loans?

Best answer:

Answer by Nina
Just because the price tag on the house is expensive… doesnt mean that your payments for the mortgage has to be expensive. Talk to a mortgage professional, preferably not a bank. They have resources availble and contact with many different lenders to find the program that is right for you.

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3 Comments → “How can I afford a home in San Diego?”


  1. Victoria

    Nov 18, 2013

    Good luck!! We used to live in SD and it is sooo out of control it isn’t even funny. Back in 1998 we had an eye on a home that was only about 1500 sqf and it was 154,000 thought that was too high and passed on it. We moved back east and then last year we went back for a visit. It was soooo amazing – we went to that neighborhood and that same layout house was for sale for over $ 450,000 ! That blew my mind. How much homes cost out there is just crazy.

    It IS hard and it is almost imposible. Good luck with it. Stear clear of interest only loans – they are bad news. They are loans for people who really can’t afford the houses they are interested in… It is a end run around to get a smaller monthly payment that will eventually bite you in the rear a few years later.

    So many people are starting to come to terms with their interest only loans and that is not going to be a pretty picture when they start to realize that they don’t have enough money coming in to start paying the amount that includes the principal with it.


  2. Jae

    Nov 18, 2013

    The short answer is you can’t. Unless your job is bringing in over 200K a year or so. I used to live in San Diego and now work in the mortgage industry. The median home price in San Diego is about 550K. For example, if you have a 30 year fixed mortgage @ 6.5% on a 550K home, your mortgage payment is going to be $ 3,476.37 and that’s not including taxes and insurance. If you’re bringing in 100K a year that’s $ 8333 a month you’re bringing in before taxes. After taxes there isn’t much money left over for actual living (food, gas, credit cards, etc.)

    I would definitely look into foreclosures or talk to a bank about REO homes (They’ll know what you’re talking about) Interest only is alright only if you’re making a little more than the minimum payment, or if you expect your income to increase, or you expect your home to appreciate in value after the interest only period is over. Good Luck!


  3. gordon_gecko.rm

    Nov 18, 2013

    This may seem like a glib answer but how good is your job if you’re not making enough to afford a home in your area? Either your job is not good enough or the market is overpriced and will “correct” as the general population finds themselves in your situation.

    Also, I can’t believe mortgage brokers are still recommending interest only loans. Rates are going nowhere but up. Does it make sense to purchase a home with a mortgage payment that is subject to the whims of the Fed? Do you want to live with that uncertainty every quarter in addition to the knowledge that every monthly payment does nothing to lower the balance due?


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