How much can I afford in San Jose? I'm looking to purchase around $400K.

Asked by Kaitlyn, San Jose, CA Tue Aug 12, 2008

My gross income is $95k and $70K for down payment. I have $1000 in debt payments each month. From your experience, how much loan will I be able to get?

Help the community by answering this question:

+ web reference
Web reference:


Andrew, , San Jose, CA
Sun Dec 28, 2008
There are some good answers below, but someone said they can get you at loan for 6.5% interest. That is very high. Most of our buyers are getting rates between 4.8% and 5.2% on a thirty year fixed loan. That would bring your payment down considerably.

Good Luck Kaitlyn!

0 votes
Norman Aless…, Agent, San Jose, CA
Thu Aug 14, 2008
Hi Kaitlyn,
My name is Allyson, the other realtors have answered your loan amount question nicely, I specialize in bank owned and short sales property purchases. I have purchased bank owned homes in the San Jose area so I do have the experience you may be looking for.
If you would like you can log onto my web site at http:// and check me out, and you can also put in a FREE bank owned property search for your area. If you need assistance I can put in the search for you just email me with your particulars ( price, bed/baths, sqft, and price range ) and I will set it up for you.

Allyson Alessandrini
(408) 705-6578
0 votes
James Peters…, Agent, Los Gatos, CA
Wed Aug 13, 2008
Hi Kaitlyn,

I'll go ahead and give you some real #'s. If you can verify your income over the last 2 years and your true debt is $1000/mth. then lenders would be willing to lend on a Debt to Income Ratio of 45%. In this case: 95k Gross Income = $42,750 yr. in qualified debt payments per year. Subtract the $12k yr debt you have now and you're looking at a maximum payment of $30,750 for your loan servicing.

I can easily find a 5-30 yr interest only product paying no points out of your pocket at 6.5% or better. Assuming you put down $60,000 (might need the $10k for title, ins. etc.) You would qualify for a purchase price of $450,000. ($390k 1st mortgage @ 6.5% Interest only). Your payment would be around: $2112 per month. Your taxes will be around $460/mth. Keep in mind you have the option to pay principle too!

In the case you want a Principal and Interest Mortgage and assuming the same #'s as above you would qualify for a $400,000 home.

In what area are you looking at?

Your best chance to get a great deal is through an REO, Bank Owned Property.

For a list of REO's sign up at my website @
0 votes
CJ Brasiel, Agent, San Jose, CA
Wed Aug 13, 2008

You are very smart to start asking the question and it looks like you are on the right track with the numbers given above. Talk with a lender or two (all of us can recommend professionals we work with) and they can help you look at the different loan options.

Good luck,
Web Reference:
0 votes
Linda Baker, Agent, Los Gatos, CA
Wed Aug 13, 2008
Good morning Kaitlyn,
Since I specialize in working with the best of the best, I would be happy to refer you to a great lender who can have a more in-depth conversation with you and explore some of the very good points that the others brought up. I feel it is important to work with a lender who is experienced in both first-time buyer programs, as well as working with Realtors & new purchase loans. What I hate is someone who promises the moon and only delivers moonrocks. It is so important to look at the entire equation - amount you qualify for, cost of the loan - both in up front costs as well as interest rate, and anything "hidden." While I am not a lender, I have a finance background, so I am a great sounding board so you can make sure the loan you are getting is the best for you. I am very protective over my clients, and I do not like anyone being taken advantage of. (That is part of the reason why we are in the credit mess you see in the news!)
Either way, feel free to ping me at or give me a call and I can give you the names & numbers of my favorite lenders.
Linda Baker
Alain Pinel Realtors
0 votes
Bill Mccord, Agent, San Jose, CA
Wed Aug 13, 2008
Hello Kaitlyn,
Based on the little info given you will easilly qualify for much more than the $400k you mention. However, without more details it is impossible to give you a complete answer. for instance, are you a 1st time buyer? how many people in your family etc?
If you are a 1st time buyer you need to talk to a mortgage broker familiar will the multiple special programs available not just in San Jose but other local cities, and Santa Clara County.
If you want to do your own research let me know and I'll give you a list of Links to the various sites where you can get details.
Good luck, Bill
0 votes
Nato Ruiz, Agent, Sacramento, CA
Tue Aug 12, 2008
Hi Kaitlyn. The $400k is pretty close to what you may qualify for. You debt to income ratios are a bit high, but depending on your credit score, there are lenders who are able to do your loan. You would have to prove that you are making $95k gross per year by using current paystubs and W2s for 2007 and 2006 and that your debts are $1000 per month. You can go to my website and use the mortgage calculators so you can get ideas as to what your payments will be like and what you qualify for. I am here in Sacramento and am at your disposal. Good luck!

-Nato Ruiz
0 votes
Patrick John…, Agent, Cupertino, CA
Tue Aug 12, 2008
Hi Kaitlyn,

The lenders on Trulia will be able to give you a good idea what you can expect to qualify for. If you are a first time buyer you may look into some of the programs available through the Housing Trust of Santa Clara County. Your $1000 in debt payments will affect your ratios which is one of the criteria lenders determine affordability. Does that include minimum payments on credit cards, consumer loan payments and the like?

I have a few great lenders that I work with. Let me kn ow if I can be of any help.

Take care,

(408) 410-9139
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more