Can I buy with a 100k salary and 80k down payment?

Target lixm23
Oct 17, 2017 102 Comments

I’m planning on relocating from the Midwest and would like to buy a condo in the Bay Area. Is it possible with this kind of salary and down payment?

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TOP 102 Comments
  • Microsoft / Eng 20% raise
    100k is poverty in the Bay Area. Don't do it.
    Oct 17, 2017 7
  • Target lixm23
    OP
    Really is Oakland that bad? I have a coworker who moved into a 1.5 M home with her husband in the north hills area with their young kids
    Oct 17, 2017 12
    • Uber
      cruffin

      Uber

      BIO
      I got baked in San Francisco
      cruffinmore
      A lot harder to push a shopping cart up a hill, too
      Oct 18, 2017
    • New rjdf00
      i used to live in marin city on top of the hill... it all makes sense now
      Oct 18, 2017
    • Facebook / Eng instandidl
      You can see the “hills are nicer” phenomenon clearly in SF. Russian Hill, Nob Hill, Bernal heights, pacific heights, etc.... all much nicer than their adjacent neighborhoods.
      Oct 18, 2017
    • Databricks / Eng
      datadicks

      Databricks Eng

      BIO
      I suck
      datadicksmore
      Oakland hills and piedmont and rockville arent "oakland"
      Oct 18, 2017
    • Apple jqnN02
      Crime don’t climb
      Oct 23, 2017
  • Panzura LLnQ28
    Why do you want to live in Oakland, check out for the crimes. It's in top 5 in US as regards crime rate.
    Oct 17, 2017 4
    • Google / Eng ungoogley
      I don't even want to drive down the fucking street in Oakland during the day.
      Oct 17, 2017
    • Okta ohmine
      You obviously never did your research throughly, Just because the address says Oakland as the city doesn't mean it is bad, Area like Piedmont is actually most likely more decent than where you live now.
      Oct 18, 2017
    • Google / Eng ungoogley
      You just don't want to be in the same city/vicinity as that shit. You don't want to have to commute through it, drive by it, or have it come across town on occasion. It's setting yourself up for unnecessary trouble, even if the subdivision you're in is mostly ok.
      Oct 18, 2017
    • Apple / Other
      stevejerbs

      Apple Other

      BIO
      Previous CEO @ 🍎
      stevejerbsmore
      lol puzzy
      Oct 19, 2017
  • Amazon UJVs78
    The recruiter is robbing you. Don't move to bay with 100k
    Oct 17, 2017 0
  • Panzura LLnQ28
    You won't get a condo below 800/900k in any decent locality. Don't want to discourage, but it does not sound practical
    Oct 17, 2017 2
    • Facebook Hupwas
      You can get a condo, townhouse or a 4 bedroom house in east bay. Pretty nice if you work for a company that has shuttles in the east bay.

      Freemont is pretty nice for Facebook employees with so many shuttle. Nice new homes for 1.1m and homes from 1960s in the 900ks. Bunch of Facebook employees moving there since it's affordable and easy commute.
      Oct 17, 2017
    • Facebook Hupwas
      Since there's small homes in the 700k/800k you can probably find a condo in Union city in your budget and it's probably safer than Oakland.
      Oct 17, 2017
  • Target lixm23
    OP
    I’m thinking on buying in Oakland. Is that a bad area?
    Oct 17, 2017 8
    • Google / Eng ungoogley
      Ok. What's a worse area then if it's not that bad?
      Oct 17, 2017
    • Uber svcphr
      Parts of Oakland are wonderful
      Oct 17, 2017
    • Uber svcphr
      Temescal for families, uptown for youth
      Oct 17, 2017
    • Nextdoor hLoz28
      @ungoogley I mean, OP hasn't been to Oakland and sees it all as one homogeneous area. And people on this thread occasionally also talk about it as if it's one homogeneous area in which you're bound to get shot. And that's blowing it out of proportion, imo.
      Oct 17, 2017
    • New RaSy42
      Anything you can afford in Oakland with your numbers would be high crime. West Oakland is particularly bad. Fremont is a good.
      Oct 18, 2017
  • Jobvite / Mgmt cstmrfirst
    A cousin bought a 2bed-2bath condo in and decent area of Fremont (Elizabeth lake) for $580K. He took advantage of HELOC which is essentially you pay less than 20% down and you can still avoid PMI. So long story short. There are several options available, zero down on areas you can afford and figure out options you have to find a place you'd can call home. Don't listen to all the BS people say when they say you can't buy a house in Bay area with that Salary.
    Oct 17, 2017 8
    • Amazon / Product KanyeShrug
      Sorry, in order to use HELOC wouldn’t your cousin need a first home? I.e the condo is a 2nd home?

      Can you get a HELOC without already owning property? I’m confused.
      Oct 18, 2017
    • Zillow Group / Other
      lcitw745

      Zillow Group Other

      PRE
      Rover.com
      lcitw745more
      Yeah can you get a home equity line of credit without first owning a home to have equity in?
      Oct 18, 2017
    • Jobvite / Mgmt cstmrfirst
      Yes, that was my cousins first home.
      Oct 18, 2017
    • Amazon / Product KanyeShrug
      @cstmrfirst After much googling, because this topic interests me, I think you’re talking about a “piggyback loan” NOT HELOC (which is what is confusing everyone).

      From “lendingtree.com

      “A piggyback loan occurs when a borrower takes out two loans simultaneously: one for 80 percent of a home’s value, and the other to make up for whatever cash is lacking to make up a 20 percent down payment. This is used as an alternative to private mortgage insurance. A piggyback loan is also known as a second trust loan.”
      Oct 18, 2017
    • LinkedIn / Eng Gill Bates
      Yes, you can. See https://www.consumerfinance.gov/ask-cfpb/what-is-a-piggyback-second-mortgage-en-1955/

      The second loan is a HELOC. Typically, in a HELOC, you start with a empty line of credit and withdraw from it. In a piggyback loan, the HELOC is maxed out and you start repaying it from day one.
      Oct 18, 2017
  • Google / Eng Xoooooooog
    No. I was making $300k/yr and gave up recently after hunting for a long time. Moved to Seattle, bought a place instantly.
    Oct 18, 2017 0
  • Target lixm23
    OP
    I’d rather not rent if possible because I’d like to build equity
    Oct 17, 2017 5
    • Google / Eng ungoogley
      On that salary though you really don't have much of an option. Even if you could, one unexpected repair would sink you. Work on the career and rent for a few years.
      Oct 17, 2017
    • Amazon / Eng
      mUqi08

      Amazon Eng

      PRE
      Amazon
      mUqi08more
      The home you can afford won't build you much equity if the market ever correct.
      Oct 17, 2017
    • And if the market tanks in the next 5 years? Renting isn't always worse.
      Oct 17, 2017
    • Apple / Other
      stevejerbs

      Apple Other

      BIO
      Previous CEO @ 🍎
      stevejerbsmore
      lol cool story bro
      Oct 19, 2017
    • Disney tralala
      Be cautious. In the first few years of a loan, you put almost nothing into equity from payments; any equity you end up with is all from appreciation. If Congress fucks the mortgage deduction with 45’s “tax cut,” you’ll see a lot of properties come on the market from people who aren’t getting a ⅓ discount on their mortgage payments anymore. It won’t tank the market, but it’ll be icky for a while.
      Oct 19, 2017
  • Google / Eng +++
    I will just leave it here

    http://sanfrancisco.cbslocal.com/2016/03/22/250k-per-year-salary-could-qualify-for-subsidized-housing-under-new-palo-alto-plan/

    Although Palo Alto is an extreme case, rest of bay area is not really much behind.
    Oct 20, 2017 0
  • Expedia Fanboy
    100K in SF is equivalent of 40K in Midwest in terms of purchasing power and cost of living. Do the math. I would reconsider moving for less than 180 real money.
    Oct 17, 2017 2
    • Autodesk / Ops Rao1
      40K for a 4 bedroom house in Detroit downtown , I guess it’s at least 30X that in SF.

      Don’t move to SF , stay in Midwest and vote for Trump !
      Oct 17, 2017
    • Expedia Fanboy
      You wouldn’t want to live in downtown. Decent suburb of Detroit is going to run 150-200K minimum.
      Oct 17, 2017
  • Facebook / Eng Wilde
    It's very easy to do the maths. $80k you have enough down payment for a $400k property. $100k salary at max 50% DTI ratio, assuming you have no debts, you can afford up to $4166. Condos here start from $800k. So you don't have enough for a down payment and you can barely afford a monthly mortgage payment for a $800k property. Most banks don't do 50% DTI btw. You will also struggle to pay for other bills.

    Don't move unless you make double your salary in the Midwest.
    Oct 17, 2017 0
  • Facebook / Other ConJusWarr
    Nope
    Oct 17, 2017 0
  • Uber JimmyJ
    There are public companies that provide all sort of info. They make millions on that. And they are not called Blind.
    Oct 17, 2017 3
    • Target lixm23
      OP
      Like what?
      Oct 17, 2017
    • Uber JimmyJ
      Like Zillow. Or Redfin. Or tens of others.
      Oct 17, 2017
    • Uber JimmyJ
      And just read things. Here is one thing for you. You can’t get a mortgage with payment greater than 40% of your monthly income. So do your math. I guess Id better help. 40k / 12 is roughly 3.5k. That means about 600k mortgage give or take.
      Oct 17, 2017
  • Panzura LLnQ28
    400k in fremont, you might be talking of 20 yrs ago. There is no point trying to convince as you are unwilling to accept. You go by your theory.
    Oct 17, 2017 2
    • Target lixm23
      OP
      lol I literally just asked someone who bought for this range last year....
      Oct 18, 2017
    • Synopsys / Eng Ghhhffafha
      Don’t ask, see for yourself, look at Zillow
      Oct 18, 2017
  • Amazon / Product KanyeShrug
    OP do you absolutely need to buy a place in the Bay Area? How long will you be living in the area?

    It’s an insane market. You should take some time to live in the area and see if you actually like it. While Silicon Valley sounds great you might discover you hate it and want to move in a few years. Then what?
    Oct 18, 2017 1
    • Google / Eng ungoogley
      This! So many people move here with California dreams to realize the area is just not what they think. I was way off on my guess before moving here, and was both positively and negatively surprised by the area. A few of my friends can't stand it and want to leave.
      Oct 19, 2017
  • New RaSy42
    100k here is poverty line, but with zero help from anyone. Anything under 160k is sadness.
    Oct 18, 2017 1
    • Google / Eng ungoogley
      For reference, I believe 78k is the section 8 cutoff. 100 isn't that much higher.
      Oct 19, 2017
  • GitHub FNIU74
    For $100k/year in the Bay Area you can afford a sandwich. Maybe two on the weekend.
    Oct 21, 2017 0
  • Dropbox heuristic
    No. I have a feeling you know the answer is no and want people here to tell you yes.

    That salary is less than new grad engineers make. There’s a reason people complain about the affordability of housing here. They wouldn’t be if people could do it on a new grad salary plus a few years worth of savings.
    Oct 18, 2017 0
  • Snapchat SnappedUp
    Hahahahaha not even close sorry man.
    Oct 17, 2017 0