5 ms·

You don't need a 200k a year job to buy a house here. What you do need to do is be practical about where you are buying and have about 10% of the purchase price

by pdx6 12y ago

You don't need a 200k a year job to buy a house here. What you do need to do is be practical about where you are buying and have about 10% of the purchase price in your savings account. For someone in the low six figures, it is possible to buy, but it will be in the up and coming parts of town, like Ingleside, Bayview, and Visitation Valley. There is also a reverse advantage of making too little. The mayor's office of housing offers first time buyers condos below market rate. The cap is about 90k for a single person, depending on the property, and works out to about 33% of that person's pre-tax income for a mortgage payment plus HOA dues. There is a lotto to get in on this deal, and there are some steep re-sell restrictions, but for those who want to own it is a real option. For those who make even less, under 60k, the city will help out with an interest free loan up to 100k. Owning in SF is very possible for those who are willing to put in the work and deal with the red tape.

mbesto 12y ago
It's also worth noting - SF barely got tickled by the housing crisis.
- grinich 12y ago
  There was already a crisis in SF: not enough housing.
  - mbesto 12y ago
    And hence why buying here is extremely smart from a financial perspective. I don't typically advise people to invest in housing for financial means (purchasing a house is largely emotional), but given the situation and the data I've seen, it appears to be a smart move.
- aliston 12y ago
  That's not true. Anecdotally, I had several friends buy nice places in foreclosure in 2009-2010 for roughly 50% of what they were worth at the peak of the housing bubble. On average, housing prices fell by 25%, but (note above), in the lesser known neighborhoods, it was closer to 40%. http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby I think the really established neighborhoods will be insulated if there is another crash -- Nob Hill, Marina, Pac. Heights, and probably the "new" neighborhoods that have gentrified quite a bit with the tech boom -- Portrero Hill, "Dolores Heights", SOMA, Mission Bay. The parts that are just getting hot now, though, could easily become less desirable and get more than a "tickle" just as they did in '08.
  - mikeyouse 12y ago
    The Dow Jones Home Price Index agrees; http://research.stlouisfed.org/fred2/graph/fredgraph.png?g=BdL http://research.stlouisfed.org/fred2/graph/fredgraph.png?g=B...
the_watcher 12y ago
Wait, there is really a way to get an interest free home loan to buy in SF? What are the criteria? Do the terms change if your employment status changes? This screams manipulation to me: Take a $59K job no matter what your qualifications. Get the home loan. Buy. Begin applying for better jobs. Even if you can't resell, a below market home and an interest free loan is incredibly valuable, and if it's in an area you don't want to live, just rent it (under the table if need be). Do you have a link to the details on this? I'm curious.
- pdx6 12y ago
  Yes. See: http://sf-moh.org/index.aspx?page=181 http://sf-moh.org/index.aspx?page=181 No, once you qualified and moved in your income can go up. You can only lease your property for up to 6 months through the MOH program and the rate is set by them. It must be your primary residence. Read the fine print. There is a mandatory class too.
- salem 12y ago
  Many below-market-rate places take a long time to sell because the salary restrictions make it difficult to get a loan, even with 10% down. The reality is that you need a large fraction in cash to afford these units. This might be the case if you're selling and moving within San Francisco, but not if you're a new low-income home buyer.
  - pdx6 12y ago
    No, not exactly. The buyer will need to be credit worthy, with at least 5% down plus closing costs. Additional cash in the bank actually reduces the income qualification. The rub comes in after a buyer moves in and the HOA fees go up, or there is an assessment, but that is a risk for anyone who buys a condo. The number of applicants for below market rate, or BMR, far outstrips the number of available properties. If a buyer is diligent and timely with all the required MOH paperwork, they can beat other applicants since the washout rate is high. If you are interested, I suggest signing up to take the class, they are free.
- duderific 12y ago

by pdx6 12y ago

mbesto 12y ago

It's also worth noting - SF barely got tickled by the housing crisis.

grinich 12y ago
There was already a crisis in SF: not enough housing.
- mbesto 12y ago
  And hence why buying here is extremely smart from a financial perspective. I don't typically advise people to invest in housing for financial means (purchasing a house is largely emotional), but given the situation and the data I've seen, it appears to be a smart move.
aliston 12y ago
That's not true. Anecdotally, I had several friends buy nice places in foreclosure in 2009-2010 for roughly 50% of what they were worth at the peak of the housing bubble. On average, housing prices fell by 25%, but (note above), in the lesser known neighborhoods, it was closer to 40%. http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby I think the really established neighborhoods will be insulated if there is another crash -- Nob Hill, Marina, Pac. Heights, and probably the "new" neighborhoods that have gentrified quite a bit with the tech boom -- Portrero Hill, "Dolores Heights", SOMA, Mission Bay. The parts that are just getting hot now, though, could easily become less desirable and get more than a "tickle" just as they did in '08.
- mikeyouse 12y ago
  The Dow Jones Home Price Index agrees; http://research.stlouisfed.org/fred2/graph/fredgraph.png?g=BdL http://research.stlouisfed.org/fred2/graph/fredgraph.png?g=B...

the_watcher 12y ago

Wait, there is really a way to get an interest free home loan to buy in SF? What are the criteria? Do the terms change if your employment status changes? This screams manipulation to me: Take a $59K job no matter what your qualifications. Get the home loan. Buy. Begin applying for better jobs. Even if you can't resell, a below market home and an interest free loan is incredibly valuable, and if it's in an area you don't want to live, just rent it (under the table if need be). Do you have a link to the details on this? I'm curious.

pdx6 12y ago
Yes. See: http://sf-moh.org/index.aspx?page=181 http://sf-moh.org/index.aspx?page=181 No, once you qualified and moved in your income can go up. You can only lease your property for up to 6 months through the MOH program and the rate is set by them. It must be your primary residence. Read the fine print. There is a mandatory class too.
salem 12y ago
Many below-market-rate places take a long time to sell because the salary restrictions make it difficult to get a loan, even with 10% down. The reality is that you need a large fraction in cash to afford these units. This might be the case if you're selling and moving within San Francisco, but not if you're a new low-income home buyer.
- pdx6 12y ago
  No, not exactly. The buyer will need to be credit worthy, with at least 5% down plus closing costs. Additional cash in the bank actually reduces the income qualification. The rub comes in after a buyer moves in and the HOA fees go up, or there is an assessment, but that is a risk for anyone who buys a condo. The number of applicants for below market rate, or BMR, far outstrips the number of available properties. If a buyer is diligent and timely with all the required MOH paperwork, they can beat other applicants since the washout rate is high. If you are interested, I suggest signing up to take the class, they are free.
duderific 12y ago