Buying a home in SF / mortgages question

New
YYdb20

New

YYdb20
Dec 19, 2018 29 Comments

I have a serious question about buying a home in SF and mortgages that I thought I'd ask this community for your experiences. My parents are able to contribute up to $400k for a downpayment, and my salary income is $180k.

Roughly what can I expect for the kind of mortgage I can get (what is the ballpark max. home price could I possibly afford) and what's the general opinion on traditional lenders like banks vs. more 'startup'y lenders like SoFi and others?

Thanks!

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TOP 29 Comments
  • LinkedIn / Eng
    goldbug

    Go to company page LinkedIn Eng

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    Full time coder and part time gold dealer.
    goldbug
    You probably want to put those $400K in a joint bank account with your name for at least 3 months. It will save your a lot of hassle explaining the source of money.
    Dec 19, 2018 5
    • LinkedIn / Eng
      goldbug

      Go to company page LinkedIn Eng

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      goldbug
      If you have 2 months of bank statements showing those money in your account, you don’t need to explain anything.
      Dec 20, 2018
    • SAP
      jujkspsst

      Go to company page SAP

      jujkspsst
      Gifts from parents are usually accepted by lenders and do not need to be traced
      Dec 21, 2018
  • 33% to 40% debt to income ratio for principal, interest and taxes. Your monthly gross is $15,000 so max expenses are $5000 to 6000, assuming you have no other debt, i.e. car or credit card

    Ar current interest rates that seems to allow for approx. 800k in mortgage. Add the 400k down payment and your max house price is around 1.2MM
    Dec 19, 2018 0
  • Shop around, based on your credit score situation some lenders can offer you lower interest rates.

    I’ve used JMV lending for my two mortgages. They are not the cheapest one, but they can close in 20 days which can be a winning factor when you bid for a place in SF.
    Dec 19, 2018 0
  • LinkedIn / Eng
    goldbug

    Go to company page LinkedIn Eng

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    goldbug
    You can borrow up to roughly 5x your annual salary. So around $900K. You need to show 2 years of tax returns if that $180K includes bonuses or RSUs. If you don’t have 2 years of tax returns showing $180K each you can only use your base salary to qualify for a mortgage.

    Go with big banks such as Wells Fargo or Chase and let them compete for a lower interest rate. Small banks are usually more expensive.
    Dec 19, 2018 5
    • New
      YYdb20

      New

      YYdb20
      OP
      I see, thanks for the insight. Would a signing bonus - something that is clearly not a recurring thing - count?
      Dec 19, 2018
    • LinkedIn / Eng
      goldbug

      Go to company page LinkedIn Eng

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      goldbug
      For this question you better ask the underwriter. But I think average of 2 years of W2 should work.
      Dec 19, 2018
  • TriNet
    AYwy24

    Go to company page TriNet

    AYwy24
    Are your parents in the market for adopting a child ? I will settle for 200k in downpayment , tell them it is a steal and my TC is 250k
    Dec 19, 2018 1
    • New
      YYdb20

      New

      YYdb20
      OP
      Haha, I'll check to see if they're interested and get back to you ;)
      Dec 19, 2018