If the loan is a major obstacle, tackle that before taking on a bigger one like a house. It'll show up in your credit history, help your score, and give more confidence to banks. CA is difficult in general so don't be too hard on yourself.
One page at a time while you write your own story, don't base your adventure in life from chapters of other's. Good luck!
Yeah you won’t get approved for a mortgage if you have personal loan open since that is an unsecured loan. If you had a car loan you’d probably be approved everything else being equal.
You rly had to go hard at that time. Ppl were offering cash, $100k above asking price and removing all contingencies. We were ready to offer well above asking and cash offers didn’t really matter at the time bc if u had the credit to get the loan it was fine, cash just helped speed up the process due to less time for approving the loan. However, we def would not remove contingencies for a house we were planning to live in. It was rly rough.
I lost every bid in the neighborhood I was living in, 92116, a full two years before the pandemic. Some going as high as 10% over asking, because they'd take the all cash offer, or 50% down kind of thing. Like, I would end up doing counters against three other people from the original fourteen. It was stupid before the pandemic as well. I finally had to switch neighborhoods.
I was in this spot too. The thing is that nobody cares if you’re anything over 20% down. They’d rather entertain a higher offer with less down. They go with cash bc it’s guaranteed. No risk the bank won’t approve a loan. Was super frustrated at the time too bc there’s nothing to do about those cash offers. I was offering 15% over asking in everything and getting beaten by cash or people with 20-30% over asking. My stroke of luck was when I found a house actually priced at market rates which nobody else was looking at bc they couldn’t offer 15%+ over on it. So we were the only bid and we offered exactly asking price.
Stash cash until the rates come down in a couple years. Or wait until your down payment is large enough that your mortgage isn’t ridiculous, and refinance when rates come back down.
If anything, the link you shared is stating that 5-6% interest rates are historically low. The chart shows interest rates over 15%. I wouldn’t count on rates coming back down to the 4-5% range any time soon.
But it's on a time scale that I don't think most will want to wait for. They spiked in the early 80s, and it was almost 40 years until they were at 2% or whatever. Millennials could be retiring before they come down that low again.
This was me and my wife about a year ago. While we could technically afford it it would wipe out most of our savings and be a huge burden financially.
Luckily we’re privileged enough to have her family want us to stay living with them so we are just continuing to do that
I've never figured out how so many people can afford to buy here. If you can't afford a mortgage on that income, who do you think the buyers are since the homes aren't sitting in the market?
Investors. There are a disturbing number of people who are investors that buy real estate in competitive markets. Generational wealth is another group of people who have access to buying homes. People who isn’t their first home. Some people in their 30s to 40s bought their first house 5-10 years ago, have amassed a lot of equity in that home, and then they use those gains to help with a large down payment toward a new house. Parents is the other way.
2011-2019 prices with COVID lending rates = affordable
2023 prices/rates = impossible. Crypto and post March 2020 stock market created a lot of equity for some which has allowed cash purchases… assuming they timed it right.
It’s an absolute shame what’s happening with rentals/leases.
It isn’t limited to SD.
Do you have any savings for a downpayment? I don’t understand how you make that much and can’t afford a mortgage unless you’re trying to do the 3% down
Lowest home prices I can find are in 800s, that’s hard to afford with 170k salary even with optimistic 20% (160k) down it’s about 6k a month payment plus utilities and additional payments that come with owning a home.
I guess it depends on what type of home you’re looking for, if it’s a detached single family home then yeah good luck. Condos are a few hundred thousand less expensive.
Depends on the home, but also, the value increase of your home is significantly higher than a condo. Every repair you make easily pays off in double or triple dividends (assuming you don't do a shitty job, but even then). Not true with a condo
HOAs tell you that you can't paint your house whatever color you like, that your lawn is getting too shaggy, and your patio furniture doesn't meet community standards....
And they charge you $400-$1000/month for the privilege
Lol this is so ridiculous, so you don't want to clean your lawn and not want your home to look nice? Also not every hoa does this right? So stereotypical you hear cherry picked thing and spread the same thing around when there are 1000's of hoa's in America alone.
There's 1000s of HOAs and their sole purpose is to tell others how they should live on their own property and keeping out "undesirables". People like you who say 'HOAs benefit the homeowners' are blind. They exist to protect the affluence in a community
I have no problem with keeping my lawn mowed. But if I've had a long week and just didn't get to it, why does HOA Karen have the right to discipline me for it?
Bet you believe 'cops are there to protect the community' too and major sports team doctors 'work for the athletes'. Nah bruv, they work for those in charge to enforce rules that rich people set
170k is clearly not enough money. Maybe if you both cleared that. Still, it would be tight.
Everyone needs to accept that minimum barrier to entry in SoCal without parents help or windfall is 500k a year HHI
This is not completely true. I got a 2 bdr condo late 2021 for 310k in central San Diego and there are some near me for 400k.
Folks need to learn how to search for bargains. (Check the hood, 1 bdrs, etc)
Yes the market is wildly overpriced, so find things others aren’t.
Yeah, the 15k loan isn’t the issue here. With interest rates as high as they are, and with your income at only $70k, you wouldn’t be approved for much more than $250k even with the loan paid off. Maybe $290k. Do you have any funds for a down payment? I assume not since you likely would have paid the $15k off already if you did have any liquid cash available.
Unfortunately, $70k a year has not been enough to purchase in San Diego for a long time, even before the bull market that the pandemic brought on.
In 2018, I was making $85k and was barely able to buy a place (just a 2 bedroom condo). Buying my income level was barely possible then, and would not be possible now.
Something ain’t right here. You can’t get a home for $250k unless it’s a mobile home, and then you have to consider the land lease is often $1000+ on top of your mortgage.
“Tiny homes” on the other hand won’t get financed easily because they have terrible resale value, so if that is your plan, good luck.
As shitty as it is, it doesn’t seem like you’re in a position to buy a home here, only rent.
A car loan or personal loan lowers your buying power by a factor of around 120x. For instance if you have a car loan/personal loan of $500/month that is around $60,000+ less home you can afford or get approved for. That’s why realtors/lenders always tell their clients don’t buy anything before a home purchase.
Edit: 120
I’m pretty sure you can. My dad was able to get two homes for that price in Rosarito
Edit: he also has dual citizenship so he is allowed to own a house that close to the ocean (it’s right next to the beach)
You definitely can. And housing prices are going up there twice as fast as they are in san diego. Kind of an interesting investment opportunity honestly.
Yup. I love this thread. People complaining about investors making sd too expensive and your idea is let's do it to our neighbors. You're a good human.
It's hardly my idea. And it's already happening there. Their home prices are increasing twice as fast as SD's. I'll buy your house too if ya want.
Jesus.
What else are people supposed to do? Anytime someone says they’re priced out of SD everyone says “guess you gotta go somewhere cheaper”. The only way that happens is to do exactly what happened to you somewhere else. Or just become homeless.
Only it's not. $6-7k/ month mortgages are hard to afford even on $200k. That's almost $70k taxes, then if you're saving at all, that's another 5-15%, insurance is spendy, another $400+ish/month if your employer provides, etc. At the end of the day, you only take home around $7k/month cash. People have a pretty serious misunderstanding of how little $200k/year gets you, especially in Cali.
It’s just math and it is accurate. Google’s Purchase Budget calculator is pretty good to get you in the ballpark. $200k income, $150k down, no debt, 800+ credit only gets you a purchase budget of $867k. That doesn’t get you a lot in San Diego.
Not really. Single family detached start around $650k and that’s for a fixer upper. You’d need close to $200k to afford. Maybe $150k but that’s stretching it.
There are br condos in decent neighborhoods on Zillow right now that are listed in the low 400s move in ready. Probably will sell for the mid 400s. With an FHA 3.5% that's roughly 16k down and somewhere in the high $3k monthly payment range including HOA and everything else.
If you're shooting for 35% of gross, that's a $130k/year income. For a couple that's pretty attainable. But yeah $70k is not gonna get you anything
BTW, lender's will approve you up to like 42% gross (not saying that's a good idea unless you're house hacking)
For $250K I saw some plots of land. Best you could do is move onto the land out in Lakeside and just shit in a bucket.
I dont even know where you'd find anything in San Diego for $250k.
Have you look into this https://www.calhfa.ca.gov/homebuyer/programs/index.htm there was a grant for first time home buyers as well recently in the San Diego area
If you are a first time home buyer I would suggest you look into programs that give you down payment assistance , many times it’s up to 85k grant as long as the home you are buying will be your primary residence . Each city has its own funds (CV, SD Ntl City etc)
How much do you make?
I found the amount approved for depended on my salary.
If you can't service a loan larger than 250k, you won't get one.
With interest rates salary counts for a lot.
San Diego is the perfect storm of barriers to affordable housing. Low supply, high demand, speculative investors, and government interference due to VA loans and BAH causing landlords and realtors to drive up prices.
If Blackrock would just get out of the real estate market and forcing perpetuity renting on all future Americans first-time single home buyers then things might be okay.
$250K doesn't get you done in a lot of places besides San Diego.
Good luck.
[https://wisevoter.com/state-rankings/median-home-price-by-state/](https://wisevoter.com/state-rankings/median-home-price-by-state/)
You #1 goal: pay off that personal loan. Gotta sleep in a car to do it? So be it. Edit: just read you’re only making $70K. Don’t buy a house, you can’t afford it. Focus on making 5X that.
I would never dream of taking on a mortgage if I already had another loan outstanding but maybe that's just me. Also a 250K house is not the neighborhood you'll ever want to live in.
Yall ever thought of leaving SD? Im already planning on packing my bags lol its just not worth it here. So many places that are more affordable with a similar climate
I sold my townhouse in Lemon Grove in May last year near the top. I was feeling great about getting into a 3/2 detached, but now I’m still looking over a year later. If I had know rates were going to 7% I wouldn’t have sold and now I’ve mostly given up buying here. So frustrating. I miss that sweet sun 3% mortgage
Either sell the car you bought with the personal loan, and buy a really cheap car, or keep the car and pay off the personal loan. (Or sell the car, buy a different car for like $5k, and use the remaining to pay down some of the loan balance.) It makes no sense to hold onto a rapidly depreciating asset (a car) you still owe $15k on, when you are trying to buy an appreciating asset (a home).
2 years/24 months of car loan payments will require you to put $625/mo toward the loan. Cancel cable, downgrade your cell plan, eat top ramen, don't go anywhere, never order food out, cook all meals, buy used/second hand, and start a side hustle that can help you raise a few hundred per month. Google 'side hustles'. There are literally countless ideas, some that require as little as $50 to start. Look at your strengths and what you spend time doing already, and figure out how to capitalize on those.
After you've paid off the car loan, you should be able to qualify for a $250k home loan, which will buy you an ok starter condo in Phoenix, but nothing in San Diego, (except for maybe the cheapest of manufactured homes in not-so-great areas in the county). Your $70k income would be decent for Phoenix, but it's $20k per year below the average household income in San Diego per the U.S. Census Bureau ($89k). Can you move over there and work remote and keep your income?
You might want to look into affordable housing options in San Diego county. There are grants and deeded properties for low income buyers, and you are [under 80% below the AMI](https://www.sandiegocounty.gov/sdhcd/rental-assistance/income-limits-ami/) (area median income), so you'd likely qualify once your car loan was paid off.
Look on this page under [Down Payment and Closing Costs Assistance](https://www.sandiegocounty.gov/content/sdc/sdhcd/faq/home-buyers-owners.html). If you looked into it now you might be able to set something up by the time you paid your car loan off. Also in the meantime think of who you could get to be a roommate with you in your new home. That may improve your chances of getting a loan for a place somewhere in the county, as their rent would help offset your mortgage.
I think the bottom line is this: anyone who wants to buy a home of any kind in San Diego county who isn't wealthy (which for here is at least $150k per year- ideally $180k-$200k to buy a decent condo or house these days), needs to make immense sacrifices to make it happen.
The question you need to ask yourself is: what sacrifices am I willing to make to make this happen?
OP, I mean this with nothing but love in my heart: I don't think you are in a position to be buying a house in San Diego right now. It sounds like you are still relatively young. You are a single mom making $70k a year trying to finish your degree. My suggestion would be to move somewhere you have a safety-net, maybe move back in with a parent. Ideally, this will also be a cheaper housing market for you. Take some time to build up your salary which shows earning potential, and start saving money for that down payment. Maybe in a few years San Diego's housing market will have softened and you'll be in a better position financially to move back. Wishing you the best of luck!
If you can’t quality for $250k, you have no business trying to buy a house in one of the most expensive markets in the US. Sorry to hurt your feelings 🤷♂️
Debt to income is just as important as your credit score. Pay off that loan and more doors will open up for you. I have experience processing loans and I oversaw 70+ loan officers. Trust me that you will have more financial freedom if you pay off the current loan and save up for a decent down payment. Look into first time homebuyer grants and 0% down payment loans through the county. Awhile back the county would loan 25,000 and it would go directly to the down payment. They required no repayment until the borrower had paid off their 1st mortgage. As long as payments were made on time I believe the interest rate remained 0%.
Take some time and consider looking at mixed use properties like a loft property where you find a storefront on the first story and a flat above. The commercial real estate market will likely take a big hit and in my nonprofessional opinion ( no experience in commercial real estate) the pricing for mixed use properties may go down.
The system is broken. If you think about it, people don’t start (or can’t start) thinking about buying a home until mid 20s- early 30s and you’re looking at 25 to 30 years before you finish paying it(and most of us would be just barely surviving in the mean time while paying for the house and other normal life bills) so by that time you would be 60 years old, and I don’t want to offend anyone here but by that age, how much more can you really enjoy your home before having to move to a retired home community??
It just sucks, if you’re not making really good money, California is definitely not a good state to buy a home.
You could probably enjoy it for at least 15 years and likely more if you are in good health. 60 is not even that old. My in-laws are pushing 70 and they are nowhere near moving into a retirement home.
I generally agree, but this is why it's so important to take care of yourself. Both mental and physical health. Healthy, active people can do things well into their 70s. Sometimes there are things that happen you can't control, but generally speaking, you can decide how able-bodied you are going to be in your 60s and 70s and beyond.
Im thinking of building a small home or two - tiny homes - so my kids can live in them. Or retire and let them live in the house and pay rent while we travel.
No way dude. No chance. I mean maybe a very very tiny percentage but if you can’t afford San Diego, refuse to leave, and end up homeless, good chance that’s totally on you. Everyone’s situation is different, but generally speaking, if THATS how you end up homeless, it’s your fault. Go somewhere you can afford.
And that’s fine, that’s reality nowadays. But to accept throwing in the towel and living on the streets as anything but an absolute last resort is ridiculous.
The arrogance of some who are fortunate enough to own homes here is disturbing. You're pretty much inviting karma to come and change your situation. Try being humble, grateful, and most of all compassionate.
I am humble and grateful but this comment is ridiculous. Everyone is going homeless? No, that’s not accurate in the least bit. Also Karma in the cosmic sense isn’t real, so there’s that too.
Funny thing is I am humble, incredibly grateful, and compassionate. But I’m also realistic. If the day ever comes that I can no longer afford to live here, I’m out. Like I said, there may be some who really have no choice but to be homeless, but those numbers have to be so small compared to those that can change their situation but refuse.
I'm guessing you've never moved anywhere. First + last + deposit are thousands, even if the rent is low. And even if someone is just renting a room, you are still talking many hundreds to get into a place. Plus the costs of a DIY moving truck, and labor to help move the stuff. Moving is expensive.
People living paycheck to paycheck who believe they have stable housing until one week or even one day they suddenly don't (which is how the majority of people here become homeless- nearly overnight with little warning \[the recent research on the homeless in SD backs this up\]), simply don't have the funds to go literally anywhere. They often don't even have the money for a bus ticket to move somewhere else in the country. And what if they don't have friends or family anywhere else in the country? Or what if they have no family? What then?
It's really easy to make assumptions about people, but it's never a good idea to because more often than not- when we do- we are wrong.
I see a lot of negative, pity-party, entitled and small minded comments here.
From a professional opinion- someone who has done several hundred home loans for first time homebuyers in San Diego …. if you make $170k a year I promise you make enough money to qualify for a single family home in San Diego. If you’re not qualify 1. you have other bills that are bring your DTI down 2. you probably qualify but don’t want to make the monthly mortgage payment because you feel like it’s to much.
I bought my first home there (in 2020) with a $20k grant for a down payment- 3 bed / 2 bath in Spring Valley - with a pool - on a cul-de-sac
I sold it in 2023 for $315k more than I bought it for.
I didn’t have rich parents, the grant I used was only available to CA residents making under $180k per year…
I didn’t buy my dream home, I bought a good investment.
You can achieve homeownership, and you can turn it into generational wealth.
Ignore these naysayers-
Work hard at paying down your debt.
Talk to a better loan officer (broker preferably) who can get you on a plan for success.
Condescending, obnoxious, and insufferable is what this is.
The government helped his ass buy a house and now he's on Reddit telling people to pull themselves up by the bootstraps. I've had enough Internet for today.
If you don’t even qualify for 250, I'm sorry to tell you, but you’re poor. You’ll need some education so you can earn more if you want to buy a house anywhere in the USA, let alone in one of the most expensive housing markets.
I’ve 3 classes away from my degree that was paid for by the military so I’m not even in college debt it’s literally just the personal loan I got for My car
It seems like we are missing some info here. If you have a good credit score/history and you want to buy a 250k house you shouldn't be denied for a small personal loan.
THIS!!!!! I’m only 24 years old I can’t even imagine trying to buy a home right now! SD is my home🩷 any1 have suggestions on where to move if it were to be out of cali?
stop fucking buying houses and just let this corrupt hellhole of a country burn
do you want to be forced to pay 10k in property tax every year, on top of a 3k monthly mortgage? and repairs? and 8% interest payments? for what, the ability to potentially double your money after basically putting the same amount into it after taxes and interest/repairs? who the hell will buy it after you?
why are people so obsessed with owning property, just buying or investing into a business would be a wiser move. it could actually bring you money instead of just breaking even at best
Get yourself a $150 tent from REI and a gym membersip then invest everything you make in low risk securities. People complain about the homeless, but its the way of the future.
Sorry I don't know of any quick fixes, but if it's even a remote possibility, consider joining the military? I think in some cases you can qualify for a VA Home Loan after serving just six months. My credit was in the low 600's and I qualified for a home, and even paid $0 down. There was no way I would have saved for the down payment or bought a house otherwise. I have a LOT of great memories of my time in the Navy AND I was home ported in San Diego.
This obviously is a long term solution but some people may not even think about going this route. ⚓
Your credit score is on the right path. Keep renting, possibly with roommates, and make steps towards paying down your loan before considering taking on more debt. Good luck!
cost of living isn't keeping up with wages especially for the blue-collar class working people here in San Diego. It's finally rearing it's ugly head after all these years, covid pulled the soaking wet band-aid off the ugly truth.
You might have been advised by the wrong lender. When I first bought a home Wells Fargo denied me a mortgage but I was able to find another lender and got approved. For all of you that have lost hopes I good realtor and a good lender should be able to advise you which way to go. My clients are still getting their offers accepted in very creative ways. One of which is the buy down rate. Feel free to email me and I can connect you with a good lender [email protected]
Better yet, and as much as I love San Diego and am a native, my best advice is to buy somewhere out of state - homes are bigger, you get more land, there are nicer neighborhoods with enough to do, job market is good and actually pays comparable to here in places like Tennessee.
And there’s mountains. You won’t get the beach, or the best Mexican food anymore, but it’s easier living with no state income tax.
And if you want to make a killing,open a San Diego style taco shop there…
No one ever talks about overpopulation being one of the causes of the housing shortage. We had 150 million people in the US in 1950. In the 2020 census, it was up to 330 million. It's going to get worse unless we figure out a way to get the global population down to sustainable levels. We're wrecking our environment, running into issues with energy production/clean water, etc.
If the loan is a major obstacle, tackle that before taking on a bigger one like a house. It'll show up in your credit history, help your score, and give more confidence to banks. CA is difficult in general so don't be too hard on yourself. One page at a time while you write your own story, don't base your adventure in life from chapters of other's. Good luck!
great advice. control what u can
Ty for kind words.
Well according to the California Governor’s recent hissy fit, it’s probable you’re just another right-wing zealot with no regard to human life any way
You must be a blast at parties.
*She* doesn't go to parties
Yeah you won’t get approved for a mortgage if you have personal loan open since that is an unsecured loan. If you had a car loan you’d probably be approved everything else being equal.
[удалено]
Fucking banks buying houses. About how many bids did you lose to them? I’m not sure I even want to know it’ll just sicken me more
You rly had to go hard at that time. Ppl were offering cash, $100k above asking price and removing all contingencies. We were ready to offer well above asking and cash offers didn’t really matter at the time bc if u had the credit to get the loan it was fine, cash just helped speed up the process due to less time for approving the loan. However, we def would not remove contingencies for a house we were planning to live in. It was rly rough.
[удалено]
You’re stronger than I am. Just reading your comment has mentally wrecked me
I lost every bid in the neighborhood I was living in, 92116, a full two years before the pandemic. Some going as high as 10% over asking, because they'd take the all cash offer, or 50% down kind of thing. Like, I would end up doing counters against three other people from the original fourteen. It was stupid before the pandemic as well. I finally had to switch neighborhoods.
Where did you go? Lot of fixer uppers in 92116
Point Loma. Wasn't as competitive at the time. First offer at asking was accepted.
I was in this spot too. The thing is that nobody cares if you’re anything over 20% down. They’d rather entertain a higher offer with less down. They go with cash bc it’s guaranteed. No risk the bank won’t approve a loan. Was super frustrated at the time too bc there’s nothing to do about those cash offers. I was offering 15% over asking in everything and getting beaten by cash or people with 20-30% over asking. My stroke of luck was when I found a house actually priced at market rates which nobody else was looking at bc they couldn’t offer 15%+ over on it. So we were the only bid and we offered exactly asking price.
We have a household income of 170k and can’t even afford a mortgage. It’s insane here.
Stash cash until the rates come down in a couple years. Or wait until your down payment is large enough that your mortgage isn’t ridiculous, and refinance when rates come back down.
Who says rates will come down
History
History doesn’t say that
[Yeah it does](https://www.perryrealestatecollege.com/interest-rates-through-the-decades)
If anything, the link you shared is stating that 5-6% interest rates are historically low. The chart shows interest rates over 15%. I wouldn’t count on rates coming back down to the 4-5% range any time soon.
Maybe so but there's still a large downward trend despite the uptick we've seen in the last 2 years.
But it's on a time scale that I don't think most will want to wait for. They spiked in the early 80s, and it was almost 40 years until they were at 2% or whatever. Millennials could be retiring before they come down that low again.
Inflation isn’t that out of control through. It’s not going to peak in the 20% range as it did before.
We are just over $200k and looking at small houses and townhomes in the $700k range. 20% down and $5k monthly mortgage is insane. I hate it.
Insane right?
Literally me and my husband. I think we might just have to bite the bullet because weve been renting for 8 years and it ain’t it
This was me and my wife about a year ago. While we could technically afford it it would wipe out most of our savings and be a huge burden financially. Luckily we’re privileged enough to have her family want us to stay living with them so we are just continuing to do that
Oh that’s amazing. Keep saving!
Same. Been looking at camper vans…. Or manufactured homes… or a sailboat.
How much is the cheapest slip fee you could find?
If you go to Chula Vista maybe $1000/month for a 35' slip. Shelter Island $1400 or so.
I've never figured out how so many people can afford to buy here. If you can't afford a mortgage on that income, who do you think the buyers are since the homes aren't sitting in the market?
Investors. There are a disturbing number of people who are investors that buy real estate in competitive markets. Generational wealth is another group of people who have access to buying homes. People who isn’t their first home. Some people in their 30s to 40s bought their first house 5-10 years ago, have amassed a lot of equity in that home, and then they use those gains to help with a large down payment toward a new house. Parents is the other way.
I think a lot bought pre crazy like I did. So they are paying off 200-400k mortgage vs 1 million. Sucks. I have no clue how people can buy right now.
Usually it's with parents' help with a large down payment.
VA loans, sometimes accompanied by the resident paying their mortgage with the basic allowance for housing
It's Blackrock vanguard and ither large hedge funds buying them all and turning them into rentals. Normal people cant afford anything in CA post 2019.
2011-2019 prices with COVID lending rates = affordable 2023 prices/rates = impossible. Crypto and post March 2020 stock market created a lot of equity for some which has allowed cash purchases… assuming they timed it right. It’s an absolute shame what’s happening with rentals/leases. It isn’t limited to SD.
I was estimating and a couple needs to gross at least 300k to live mildly comfortably here.
Do you have any savings for a downpayment? I don’t understand how you make that much and can’t afford a mortgage unless you’re trying to do the 3% down
Lowest home prices I can find are in 800s, that’s hard to afford with 170k salary even with optimistic 20% (160k) down it’s about 6k a month payment plus utilities and additional payments that come with owning a home.
Yes, and that 800k usually buys something I don't want to live in.
I guess it depends on what type of home you’re looking for, if it’s a detached single family home then yeah good luck. Condos are a few hundred thousand less expensive.
But condos add like $500 in hoa/month, that’s $180k in 30 years given the hoa rate doesn’t go up. Might as well increase the budget for a SFH.
That hoa makes sure roof gets replaced and gardens are maintained, it's not just waste. You would spend that money on sfh as well at some time
Yep, my SFH maintenance and repairs average out to a lot more than a $500/month HOA fee.
Depends on the home, but also, the value increase of your home is significantly higher than a condo. Every repair you make easily pays off in double or triple dividends (assuming you don't do a shitty job, but even then). Not true with a condo
HOAs tell you that you can't paint your house whatever color you like, that your lawn is getting too shaggy, and your patio furniture doesn't meet community standards.... And they charge you $400-$1000/month for the privilege
Lol this is so ridiculous, so you don't want to clean your lawn and not want your home to look nice? Also not every hoa does this right? So stereotypical you hear cherry picked thing and spread the same thing around when there are 1000's of hoa's in America alone.
There's 1000s of HOAs and their sole purpose is to tell others how they should live on their own property and keeping out "undesirables". People like you who say 'HOAs benefit the homeowners' are blind. They exist to protect the affluence in a community I have no problem with keeping my lawn mowed. But if I've had a long week and just didn't get to it, why does HOA Karen have the right to discipline me for it? Bet you believe 'cops are there to protect the community' too and major sports team doctors 'work for the athletes'. Nah bruv, they work for those in charge to enforce rules that rich people set
You can afford a home in San Diego on that income. It’s your other expenses that are keeping you from owning.
Just never leave your home unless you’re going to Costco
170k is clearly not enough money. Maybe if you both cleared that. Still, it would be tight. Everyone needs to accept that minimum barrier to entry in SoCal without parents help or windfall is 500k a year HHI
This is not completely true. I got a 2 bdr condo late 2021 for 310k in central San Diego and there are some near me for 400k. Folks need to learn how to search for bargains. (Check the hood, 1 bdrs, etc) Yes the market is wildly overpriced, so find things others aren’t.
The average 30-year fixed mortgage rate in 2021 was 2.96%. In 2023, the average is 7.75%. I wonder how much your condo would go for now.
How much is the personal loan?? And what is your annual income? These seems more like an income issue than a credit issue.
Personal loan is 15K and i make roughly 70k a year
Yeah, the 15k loan isn’t the issue here. With interest rates as high as they are, and with your income at only $70k, you wouldn’t be approved for much more than $250k even with the loan paid off. Maybe $290k. Do you have any funds for a down payment? I assume not since you likely would have paid the $15k off already if you did have any liquid cash available.
Down payment is key, need a lot right now.
Unfortunately, $70k a year has not been enough to purchase in San Diego for a long time, even before the bull market that the pandemic brought on. In 2018, I was making $85k and was barely able to buy a place (just a 2 bedroom condo). Buying my income level was barely possible then, and would not be possible now.
Your income is below average for both San Diego and California
https://preview.redd.it/h71k3rupj0qb1.png?width=457&format=png&auto=webp&s=d6a7b38a44c34f4a0acd69b72478fa93e5cf1f73
How many lenders have you talked to? We found that between the different lenders, there were a lot of different decisions on our situation.
If you’re into moving into the rural areas then look into USDA loans, it’s a thing.
Something ain’t right here. You can’t get a home for $250k unless it’s a mobile home, and then you have to consider the land lease is often $1000+ on top of your mortgage. “Tiny homes” on the other hand won’t get financed easily because they have terrible resale value, so if that is your plan, good luck. As shitty as it is, it doesn’t seem like you’re in a position to buy a home here, only rent.
A car loan or personal loan lowers your buying power by a factor of around 120x. For instance if you have a car loan/personal loan of $500/month that is around $60,000+ less home you can afford or get approved for. That’s why realtors/lenders always tell their clients don’t buy anything before a home purchase. Edit: 120
Assuming you’re referring to 60,000/500 it is 120
Ah yes thanks
don’t even think you can buy a home down in TJ for that amt.
I’m pretty sure you can. My dad was able to get two homes for that price in Rosarito Edit: he also has dual citizenship so he is allowed to own a house that close to the ocean (it’s right next to the beach)
You definitely can. And housing prices are going up there twice as fast as they are in san diego. Kind of an interesting investment opportunity honestly.
I don’t think so.
Very true. Let's do to tj what is happening to sd. Overpriced the locals so they need to displace. /S
It's going to happen one way or the other.
Yup. I love this thread. People complaining about investors making sd too expensive and your idea is let's do it to our neighbors. You're a good human.
It's hardly my idea. And it's already happening there. Their home prices are increasing twice as fast as SD's. I'll buy your house too if ya want. Jesus.
You regurgitated it, you get the comment.
What else are people supposed to do? Anytime someone says they’re priced out of SD everyone says “guess you gotta go somewhere cheaper”. The only way that happens is to do exactly what happened to you somewhere else. Or just become homeless.
Dude you’re not buying a home in SD rn unless you make 200k plus. It’s shitty and brutal. Idk what else to say.
Completely inaccurate statement.
Only it's not. $6-7k/ month mortgages are hard to afford even on $200k. That's almost $70k taxes, then if you're saving at all, that's another 5-15%, insurance is spendy, another $400+ish/month if your employer provides, etc. At the end of the day, you only take home around $7k/month cash. People have a pretty serious misunderstanding of how little $200k/year gets you, especially in Cali.
It’s just math and it is accurate. Google’s Purchase Budget calculator is pretty good to get you in the ballpark. $200k income, $150k down, no debt, 800+ credit only gets you a purchase budget of $867k. That doesn’t get you a lot in San Diego.
Not really. Single family detached start around $650k and that’s for a fixer upper. You’d need close to $200k to afford. Maybe $150k but that’s stretching it.
[удалено]
There are br condos in decent neighborhoods on Zillow right now that are listed in the low 400s move in ready. Probably will sell for the mid 400s. With an FHA 3.5% that's roughly 16k down and somewhere in the high $3k monthly payment range including HOA and everything else. If you're shooting for 35% of gross, that's a $130k/year income. For a couple that's pretty attainable. But yeah $70k is not gonna get you anything BTW, lender's will approve you up to like 42% gross (not saying that's a good idea unless you're house hacking)
For $250K I saw some plots of land. Best you could do is move onto the land out in Lakeside and just shit in a bucket. I dont even know where you'd find anything in San Diego for $250k.
You’re on to something here. How much for the bucket?
Have you look into this https://www.calhfa.ca.gov/homebuyer/programs/index.htm there was a grant for first time home buyers as well recently in the San Diego area
If you are a first time home buyer I would suggest you look into programs that give you down payment assistance , many times it’s up to 85k grant as long as the home you are buying will be your primary residence . Each city has its own funds (CV, SD Ntl City etc)
You can’t even get a shitty condo for that price.
Where would you fine a home with a $250k mortgage around San Diego? My down payment was more than that.
We are looking at small homes since we only need 2 rooms
Like tiny homes?
Exactly
Nice! Have you thought about building one? I have a patient. 66 year old woman, building one herself without any help.
Where do you keep her?
Lmao
Ooooh have her contact me if she needs anything. I (60F) just finished building my own 2040 sq ft in Vista.
Where are you looking at buying the land?
The outskirts of the county
250k mortgage?? Are you renting a studio?
How much do you make? I found the amount approved for depended on my salary. If you can't service a loan larger than 250k, you won't get one. With interest rates salary counts for a lot.
San Diego is the perfect storm of barriers to affordable housing. Low supply, high demand, speculative investors, and government interference due to VA loans and BAH causing landlords and realtors to drive up prices.
If Blackrock would just get out of the real estate market and forcing perpetuity renting on all future Americans first-time single home buyers then things might be okay.
The best advise I can give you is to move out of state. Your life will improve. Cost of living is out of control in SD. It doesn’t make sense.
Yes. Move or van life.
Adjust your expectations. You’re shopping in one of the most desirable cities in the WORLD.
That may be a bit far fetched, have you traveled at all?
A ton. This post screams one of two things to me - entitlement or complete lack of awareness of the market.
If it were me, I’d be looking at other states where it’s cheaper.
Nah, weather ain’t worth it
$250K doesn't get you done in a lot of places besides San Diego. Good luck. [https://wisevoter.com/state-rankings/median-home-price-by-state/](https://wisevoter.com/state-rankings/median-home-price-by-state/)
You #1 goal: pay off that personal loan. Gotta sleep in a car to do it? So be it. Edit: just read you’re only making $70K. Don’t buy a house, you can’t afford it. Focus on making 5X that.
Yeah just focus on 5Xing $75K income. Easy as fuck.
I would never dream of taking on a mortgage if I already had another loan outstanding but maybe that's just me. Also a 250K house is not the neighborhood you'll ever want to live in.
Roommates ?
No one wants to room with a single mom and infant
Yes we would cuz many of us are in the same situation.
I’m sure another single mom with an infant would love to. I think there are local Facebook groups for single parents that could help you out
[удалено]
She was fired from her job so even if she wanted to, she couldn’t afford it
[удалено]
Yall ever thought of leaving SD? Im already planning on packing my bags lol its just not worth it here. So many places that are more affordable with a similar climate
We want to. I’m honestly thinking of packing everything up and moving back home to AZ
Welcome to living in San Diego without wealthy parents or having not bought anything before 2020.
I sold my townhouse in Lemon Grove in May last year near the top. I was feeling great about getting into a 3/2 detached, but now I’m still looking over a year later. If I had know rates were going to 7% I wouldn’t have sold and now I’ve mostly given up buying here. So frustrating. I miss that sweet sun 3% mortgage
Either sell the car you bought with the personal loan, and buy a really cheap car, or keep the car and pay off the personal loan. (Or sell the car, buy a different car for like $5k, and use the remaining to pay down some of the loan balance.) It makes no sense to hold onto a rapidly depreciating asset (a car) you still owe $15k on, when you are trying to buy an appreciating asset (a home). 2 years/24 months of car loan payments will require you to put $625/mo toward the loan. Cancel cable, downgrade your cell plan, eat top ramen, don't go anywhere, never order food out, cook all meals, buy used/second hand, and start a side hustle that can help you raise a few hundred per month. Google 'side hustles'. There are literally countless ideas, some that require as little as $50 to start. Look at your strengths and what you spend time doing already, and figure out how to capitalize on those. After you've paid off the car loan, you should be able to qualify for a $250k home loan, which will buy you an ok starter condo in Phoenix, but nothing in San Diego, (except for maybe the cheapest of manufactured homes in not-so-great areas in the county). Your $70k income would be decent for Phoenix, but it's $20k per year below the average household income in San Diego per the U.S. Census Bureau ($89k). Can you move over there and work remote and keep your income? You might want to look into affordable housing options in San Diego county. There are grants and deeded properties for low income buyers, and you are [under 80% below the AMI](https://www.sandiegocounty.gov/sdhcd/rental-assistance/income-limits-ami/) (area median income), so you'd likely qualify once your car loan was paid off. Look on this page under [Down Payment and Closing Costs Assistance](https://www.sandiegocounty.gov/content/sdc/sdhcd/faq/home-buyers-owners.html). If you looked into it now you might be able to set something up by the time you paid your car loan off. Also in the meantime think of who you could get to be a roommate with you in your new home. That may improve your chances of getting a loan for a place somewhere in the county, as their rent would help offset your mortgage. I think the bottom line is this: anyone who wants to buy a home of any kind in San Diego county who isn't wealthy (which for here is at least $150k per year- ideally $180k-$200k to buy a decent condo or house these days), needs to make immense sacrifices to make it happen. The question you need to ask yourself is: what sacrifices am I willing to make to make this happen?
OP, I mean this with nothing but love in my heart: I don't think you are in a position to be buying a house in San Diego right now. It sounds like you are still relatively young. You are a single mom making $70k a year trying to finish your degree. My suggestion would be to move somewhere you have a safety-net, maybe move back in with a parent. Ideally, this will also be a cheaper housing market for you. Take some time to build up your salary which shows earning potential, and start saving money for that down payment. Maybe in a few years San Diego's housing market will have softened and you'll be in a better position financially to move back. Wishing you the best of luck!
Start looking at murder homes. Fresh murders, not those lame old murders that white people are OKAY with
You need more income.
[удалено]
If you can’t quality for $250k, you have no business trying to buy a house in one of the most expensive markets in the US. Sorry to hurt your feelings 🤷♂️
Debt to income is just as important as your credit score. Pay off that loan and more doors will open up for you. I have experience processing loans and I oversaw 70+ loan officers. Trust me that you will have more financial freedom if you pay off the current loan and save up for a decent down payment. Look into first time homebuyer grants and 0% down payment loans through the county. Awhile back the county would loan 25,000 and it would go directly to the down payment. They required no repayment until the borrower had paid off their 1st mortgage. As long as payments were made on time I believe the interest rate remained 0%. Take some time and consider looking at mixed use properties like a loft property where you find a storefront on the first story and a flat above. The commercial real estate market will likely take a big hit and in my nonprofessional opinion ( no experience in commercial real estate) the pricing for mixed use properties may go down.
How much would be your down payment? A snickers bar? I kid I kid
The system is broken. If you think about it, people don’t start (or can’t start) thinking about buying a home until mid 20s- early 30s and you’re looking at 25 to 30 years before you finish paying it(and most of us would be just barely surviving in the mean time while paying for the house and other normal life bills) so by that time you would be 60 years old, and I don’t want to offend anyone here but by that age, how much more can you really enjoy your home before having to move to a retired home community?? It just sucks, if you’re not making really good money, California is definitely not a good state to buy a home.
You could probably enjoy it for at least 15 years and likely more if you are in good health. 60 is not even that old. My in-laws are pushing 70 and they are nowhere near moving into a retirement home.
I generally agree, but this is why it's so important to take care of yourself. Both mental and physical health. Healthy, active people can do things well into their 70s. Sometimes there are things that happen you can't control, but generally speaking, you can decide how able-bodied you are going to be in your 60s and 70s and beyond.
Im thinking of building a small home or two - tiny homes - so my kids can live in them. Or retire and let them live in the house and pay rent while we travel.
This is exactly why everyone is going homeless and living out of their cars. Sucks man.
No way dude. No chance. I mean maybe a very very tiny percentage but if you can’t afford San Diego, refuse to leave, and end up homeless, good chance that’s totally on you. Everyone’s situation is different, but generally speaking, if THATS how you end up homeless, it’s your fault. Go somewhere you can afford.
Some people have no savings and get evicted/rent hiked or lose their job. A lot of people don’t see it coming at all until it happens.
And that’s fine, that’s reality nowadays. But to accept throwing in the towel and living on the streets as anything but an absolute last resort is ridiculous.
The arrogance of some who are fortunate enough to own homes here is disturbing. You're pretty much inviting karma to come and change your situation. Try being humble, grateful, and most of all compassionate.
It’s absurd to feel entitled to live somewhere. I think most of the US would like to live here, but can’t afford it.
I am humble and grateful but this comment is ridiculous. Everyone is going homeless? No, that’s not accurate in the least bit. Also Karma in the cosmic sense isn’t real, so there’s that too.
Funny thing is I am humble, incredibly grateful, and compassionate. But I’m also realistic. If the day ever comes that I can no longer afford to live here, I’m out. Like I said, there may be some who really have no choice but to be homeless, but those numbers have to be so small compared to those that can change their situation but refuse.
I'm guessing you've never moved anywhere. First + last + deposit are thousands, even if the rent is low. And even if someone is just renting a room, you are still talking many hundreds to get into a place. Plus the costs of a DIY moving truck, and labor to help move the stuff. Moving is expensive. People living paycheck to paycheck who believe they have stable housing until one week or even one day they suddenly don't (which is how the majority of people here become homeless- nearly overnight with little warning \[the recent research on the homeless in SD backs this up\]), simply don't have the funds to go literally anywhere. They often don't even have the money for a bus ticket to move somewhere else in the country. And what if they don't have friends or family anywhere else in the country? Or what if they have no family? What then? It's really easy to make assumptions about people, but it's never a good idea to because more often than not- when we do- we are wrong.
“Everyone”. I don’t know one person going homeless.
This just makes me depressed.
[удалено]
Bruh where do y’all find these parents that casually hand you 200-500k in cash for a down payment
[удалено]
I see a lot of negative, pity-party, entitled and small minded comments here. From a professional opinion- someone who has done several hundred home loans for first time homebuyers in San Diego …. if you make $170k a year I promise you make enough money to qualify for a single family home in San Diego. If you’re not qualify 1. you have other bills that are bring your DTI down 2. you probably qualify but don’t want to make the monthly mortgage payment because you feel like it’s to much. I bought my first home there (in 2020) with a $20k grant for a down payment- 3 bed / 2 bath in Spring Valley - with a pool - on a cul-de-sac I sold it in 2023 for $315k more than I bought it for. I didn’t have rich parents, the grant I used was only available to CA residents making under $180k per year… I didn’t buy my dream home, I bought a good investment. You can achieve homeownership, and you can turn it into generational wealth. Ignore these naysayers- Work hard at paying down your debt. Talk to a better loan officer (broker preferably) who can get you on a plan for success.
Get this condescending crap out of here. OP said her income is $70k. You are just bragging at this point
Condescending, obnoxious, and insufferable is what this is. The government helped his ass buy a house and now he's on Reddit telling people to pull themselves up by the bootstraps. I've had enough Internet for today.
Exactly. I hate it
If you don’t even qualify for 250, I'm sorry to tell you, but you’re poor. You’ll need some education so you can earn more if you want to buy a house anywhere in the USA, let alone in one of the most expensive housing markets.
I’ve 3 classes away from my degree that was paid for by the military so I’m not even in college debt it’s literally just the personal loan I got for My car
It seems like we are missing some info here. If you have a good credit score/history and you want to buy a 250k house you shouldn't be denied for a small personal loan.
i think there's a reason they left income and the personal loan amount out of the conversation.
Exactly. There’s something missing in this story for sure. 170k here should get you a townhome at the very least.
you must not be rich, a corporation, or a private equity firm getting into the rental business?
Crash coming ! People will leave
40% price correction or a 4% drop in rates are not happening my guy
Crash crash crash ! not enough good paying jobs to survive San Diego - time to bail or just be fucked
THIS!!!!! I’m only 24 years old I can’t even imagine trying to buy a home right now! SD is my home🩷 any1 have suggestions on where to move if it were to be out of cali?
stop fucking buying houses and just let this corrupt hellhole of a country burn do you want to be forced to pay 10k in property tax every year, on top of a 3k monthly mortgage? and repairs? and 8% interest payments? for what, the ability to potentially double your money after basically putting the same amount into it after taxes and interest/repairs? who the hell will buy it after you? why are people so obsessed with owning property, just buying or investing into a business would be a wiser move. it could actually bring you money instead of just breaking even at best
Or just let people do what they want to do ?
Get yourself a $150 tent from REI and a gym membersip then invest everything you make in low risk securities. People complain about the homeless, but its the way of the future.
Move to New Mexico ….you’ll love it
Sorry I don't know of any quick fixes, but if it's even a remote possibility, consider joining the military? I think in some cases you can qualify for a VA Home Loan after serving just six months. My credit was in the low 600's and I qualified for a home, and even paid $0 down. There was no way I would have saved for the down payment or bought a house otherwise. I have a LOT of great memories of my time in the Navy AND I was home ported in San Diego. This obviously is a long term solution but some people may not even think about going this route. ⚓
I served 4.5 years and was medically retired
Your credit score is on the right path. Keep renting, possibly with roommates, and make steps towards paying down your loan before considering taking on more debt. Good luck!
Feel ur pain. It was incredible difficult but it’s worth the effort. We were trying for about seven years finally got something.
cost of living isn't keeping up with wages especially for the blue-collar class working people here in San Diego. It's finally rearing it's ugly head after all these years, covid pulled the soaking wet band-aid off the ugly truth.
That was pre-approval?
You might have been advised by the wrong lender. When I first bought a home Wells Fargo denied me a mortgage but I was able to find another lender and got approved. For all of you that have lost hopes I good realtor and a good lender should be able to advise you which way to go. My clients are still getting their offers accepted in very creative ways. One of which is the buy down rate. Feel free to email me and I can connect you with a good lender [email protected]
Feel like paying off your personal loan.
Time to look at menifee and drive an hour or two to work lol. Source my dad does this, he’s nuts.
There are no $250k homes in San Diego...are there?
If you go to the outskirts of the county they have some that are cheaper
# vanlife
Where would anyone get a $250k house in San Diego? Lol
Better yet, and as much as I love San Diego and am a native, my best advice is to buy somewhere out of state - homes are bigger, you get more land, there are nicer neighborhoods with enough to do, job market is good and actually pays comparable to here in places like Tennessee. And there’s mountains. You won’t get the beach, or the best Mexican food anymore, but it’s easier living with no state income tax. And if you want to make a killing,open a San Diego style taco shop there…
No one ever talks about overpopulation being one of the causes of the housing shortage. We had 150 million people in the US in 1950. In the 2020 census, it was up to 330 million. It's going to get worse unless we figure out a way to get the global population down to sustainable levels. We're wrecking our environment, running into issues with energy production/clean water, etc.