Until I know your circumstances better, I cannot give my best advice for you. However, from what you write, it sounds like you should try to buy outside of the BMR program.
Right now, there are excellent loans available through FHA and others and rates are down A LOT. If you buy a BMR, you are capping its investment potential. It seems from these numbers that you may be able to do a starter condo or TIC. Get into the market and then move up after a few years. Keep your place as a rental or sell when it has appreciated.
I recommend you speak to a reliable and experienced mortgage broker about your options. Email me and I'll send you the names of a couple of folks I work with frequently and who are excellent choices for first time buyers. You don't have to commit to anything, just get solid, accurate info for your circumstances.
Also, see my post about how to choose a mortgage broker and other first time buyer info I have on my blog. I work with A LOT of newbies and love helping folks get into their first home. :)
All the best,
Danielle Lazier Zephyr Real Estate
danielle (at) sfhotlist.com
At $75,000 gross you can get into the Mayor's program..... Go to http://www.sfgov.org and check out the rules. You need to attend a class to get certified and prove to the Mayor's office that you fit in within the guidelines. You should also sign up to receive email notices about each and every new BMR that comes out. Please be sure to read all the information as there are rules and regulations.
In fact, I am on the list to receive emails about BMR units for my clients and potential clients. It is a good way to get notice of them.
With regard to FHA and all loans, banks and institutional lenders are making you go through hoops. I can email you a list of lenders and mortgage brokers I feel are terrific if you will contact me - firstname.lastname@example.org or by phone as noted on my Trulia bio.
Most realtors (and I am no exception) have First-Time Buyer books and maps with our Districts and Subdistricts to give to our clients at no charge. So please check with me or another Agent to help you get started!
I have recently worked with lenders with several buyers utilizing the FHA loan. One of the only ways they could have bought a home right now. It is a great option for many and I would encourage you to sit down with someone that will walk thru the numbers with you.
It sounds like you have a good savings started. I would suggest that you develop a plan with a trustworthy mortgage professional. With $75,000 gross income and no debts you'll have some options. There are a number of reputable sources here in San Francisco to help you craft a financial plan. If you need a referral, please let me know.
There are several developments priced at $500k or below in San Francisco right now. There are even better deals across the bay in Emeryville with city views. With your down payment and income, your are going to be very close to this price range.
I think it's a good strategy to work out the down payment, monthly payments and general price range with a mortgage professional first. Then look casually while you live according to that budget for a few months. As you live according to the budget, you'll be saving additional money for your down payment AND testing your purchase power. If you can stick to, say, a $450,000 purchase price for four to six months, you'll be in a better position. You'll also have a good handle on the market and be ready to move forward when the right opportunity presents itself.
Good luck to you and your husband! I'm happy to forward available listings while you explore options.
Urban Bay Properties