What should my target purchase price be with 150k cash and a 250k salary? Excellent credit 760 , no debt. Single. No kids.

Asked by Charlie Banks Lee, San Francisco, CA Wed Mar 5, 2014

Would I be better off renting for another couple of years to bank more cash?

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Brian Nguyen, Mortgage Broker Or Lender, Mission Viejo, CA
Fri Mar 7, 2014
With that much cash and excellent credit scores and salary like yours, you should be able to qualify for a very high amount. Have you considered taking out a mortgage or jumbo loan for your future home? You should be able to easily qualify for one with your finances. I recommend that you speak about your mortgage options with a loan officer like myself. It would be best for you to explore your options with a knowledgeable lender. If you have any further questions, feel free to reach out.

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
0 votes
Robert Winte…, Agent, Austin, TX
Thu Mar 6, 2014
What area of Austin are you interested in?
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, ,
Thu Mar 6, 2014
You could do a 1.5 million dollar home. I would be more than happy to get you pre-approved for such a purchase. Just send me an email.

Alex Greer
Loan Officer
NMLS #1056079

0 votes
Yes. Like I said
Flag Mon Mar 10, 2014
Alex, You have a program that does 90% of a 1.5 mil purchase?
Flag Thu Mar 6, 2014
Randall Yates, Other Pro, Dallas, TX
Thu Mar 6, 2014
750k. You want to put 20% down to avoid PMI. I would try and buy now instead of waiting, home prices and rates will only go up over the next 2 years.
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, ,
Thu Mar 6, 2014
Hi Charlie,

I believe property values in San Francisco are on an upward swing, so I would not wait to purchase.

There are lots of financing options. One loan with 15% down, no mortgage insurance, a first/second combo with a conforming jumbo first or an 80-10-10, just to name a few.

Best regards,

Elva A. Wormley
Mortgage Consultant
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981
0 votes
Lance King, Agent, San Francisco, CA
Thu Mar 6, 2014

There are several components that factor into my answer. First, there are plenty of loan products that offer less than 20% down, but in a competitive seller's market like we have now you will have a very difficult time getting offers accepted with such a loan product in a multi-offer situation.

That puts you at around $750K with 20% down and there isn't much inventory at that price point. Here's what I would do if I were in your situation: Find an expert to help you set up a search for properties so you can keep a pulse on the market. Said expert should be able to recommend a preferred lender who will give you great rates and VIP treatment. Windows of opportunity are small in San Francisco, so having an experienced, reputable broker ready to go to war for you and your finances ready will put you in position to jump if something great comes along.

I would add that prices are high now and have been climbing for some time - at some point prices have to start going down as the laws of gravity apply even to the San Francisco real estate market.

If you don't see something that makes sense in the meanwhile, when prices go down you will have more money to play with and less to put out.

My team and I are happy to help with this. And keep in mind that there is an ever-growing off-market inventory in the city, so you need to have a broker with access, which we do.

Best of luck and contact info is below if you want to talk about it.

Best Regards,

Lance King/Owner-Managing Broker
King Realty Group

BRE# 01384425
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Tony Ngai, Agent, Cupertino, CA
Thu Mar 6, 2014
You could consider mission bay or Pacific heights in the $700-$900k range. The rent you pay could be use for mortgage on a property. Cash in the bank isn't going to pay much interest but prices of properties in SF continues to skyrocket.
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Oggi Kashi, Agent, San Francisco, CA
Thu Mar 6, 2014
Less than $1m. If you can get gift funds to bump up your down payment then maybe up to $1.25m. As for waiting to bank more cash, it all depends how much more you expect to bank and at what level you expect property prices to be in a couple of years.

Feel free to request lender referrals.
Web Reference:  Http://wwww.oggikashi.com
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, ,
Thu Mar 6, 2014
One Million Purchase ...15% down...85%...financing....No Mortgage Insurance
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Lizete Santos, Agent, San Francisco, CA
Thu Mar 6, 2014
Hello Charlie,

We are experiencing a dearth of inventory in SF and prices continue to increase. It may be worthwhile purchasing now rather than waiting-this will depend on what your short/long term plans are going forward. Your first step should be to discuss your financing options with a lender. Below is a local contact. Then you can decide what will be best for your personal situation.

May Montana, Mortgage Advisor
Opes Advisors, Inc.
435 Pacific Avenue, Suite 350
San Francisco, CA 94133
Cell: 415-710-6651
Email: mmontana@opesadvisors.com

If you have any additional questions feel free to contact me.


Lizete Santos
McGuire Real Estate
0 votes
, ,
Thu Mar 6, 2014
Hi Charlie,

Lots of options available for you. A straight 20% down, with no mortgage insurance or piggy back 2nd you could qualify for a purchase price of 750k-775k, 600k-625k loan amount. My rates are in the low 4's for that right now on a 30 year fixed.

If for arguments sake, your down payment resources were unlimited, your salary could support a loan amount of 1.4m, but as I said, you'd need the down payment resources to cover the 20%, and the reserve requirements.

My suggestion to you would be to get pre approved by someone and then you can stat to narrow down your criteria and get a clearer picture of what you can, or want to do, and what your payment tolerance is. We have other choices other than the straight 20% down, such as an 85% LTV to 2m, or a 1st/2nd combo, it's finding the product that you are most comfortable with.

With myself the pre approval process takes no time at all once we have your financial documents. We'll pull credit, run the numbers and give you a presentation with various options that can be refined to best suits your needs.

There is never a cost, nor any obligation to use our services. Just a bit of time on your part to gather the information.

I'm happy to discuss further with you whenever your ready.

Mathew Carson,
Vice President
First Capital Group
415 606-4252,
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Jim Olive, Agent, Key West, FL
Thu Mar 6, 2014
Charlie...all great answers here, and the best advice is to work within your comfort zone. I would also consider market timing...though prices are up sharply, they are still relatively low, at least in my market. Taking advantage of these prices may be a good plan. Pick a number you're comfortable with and grab something while prices are still low. Best of luck...
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Lisa Cartola…, Agent, Oakland, CA
Thu Mar 6, 2014
Hi Charlie,

As mentioned there are several factors that are involved when looking to purchase. Talking with a lender will be very important. They will look at your salary and credit score, but will also look at your debt to income ratios, the amount of down payment you have, funds to cover closing costs, plus more.

By talking with a lender, you will really get a good idea of the price range that you would qualify for. This is a great starting point. Price range will also help you to focus on the areas where to look for a home. Prices fluctuate based on city, neighborhoods, and location within a neighborhood.

You may decide after talking with a lender that renting is better based on the information provided, or that renting and having more funds available would be more beneficial.

If you would like a referral to a lender, let me know.

Hope that helps!

Lisa Cartolano
Alain Pinel Realtors
CalBRE 01715440
0 votes
Patrick York, Agent, San Francisco, CA
Thu Mar 6, 2014
Your target purchase price is influenced by several factors, one of which is your comfort level. I'd start by talking to a lender and getting pre-approved (or better yet, pre-underwritten will be more helpful in this market. If you can find a home you like now, you may be better off purchasing now rather than waiting because interest rates are still historically low. The more interest rates rise, the less house your money will buy.

My preferred loan consultant is Kathy Chang with Princeton Capital. You can visit her website to get more information about the loan process, apply, and experiment with calculators. http://www.princetoncap.com/kathychang/

Also, feel free to browse my personal website. I've got a few calculators there as well, in addition to videos showcasing the different neighborhoods of San Francisco and other information.
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Carey N Mill…, Agent, San Francisco, CA
Thu Mar 6, 2014
Hey Charlie,

Randall's advice is good but another thing to consider is the local market. For instance in San Francisco supply is so tight right now it's possible you find yourself in a multiple bid situation and more-cash offers can be attractive to sellers in this situation. You also want to make sure your offer is structured to appraise out, but that's more of an issue in new buildings and tough comp situations. All depends on what/where you're looking for.
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Randall Ortiz, Agent, Sacramento, CA
Wed Mar 5, 2014
How much are you comfortable or willing to pay every month? It sounds like you're in a great situation as far as debt to income ratios, down payment, and monthly income are concerned, so it would come down to how much are you comfortable paying every month. Contact a lender so they can go over the numbers with you, let me know if you need a lender contact.
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