$8ok is $6,666 gross inc/mo that plus $3,200 is $9,867. Assuming no other credit card, car or other monthly debt payments the banks will tupically allow at least 35% of that to go toward housing, or $3,453 for PITI if we assume 5% down and 3.75% interest that payment finances a $570,000 purchase.
However, if you are going to build your own home, you will need to buy a building lot and then over a period of at least 1yr possibly 2yrs pay for permits, foundation, utilities, home, etc... So you will need a land loan AND then a construction loan. Hurdle #1, we'd need to talk with a lender, but land loans typically require at least 35 to 40% down. Some $'s have to go toward the lot/land and some toward the home/construction/permits and remember there will be interest payments along the way, even though there for many month won't be a home you can live in, so you will be paying rent and mortgage while building.
Let's make a few educated guesses. You will not find a building parcel that you can build on without running into permit, water, septic, utilities or some other obstacle for less than $350,000 in the Bay Area. In fact, that price will be hard to find. That leaves you with $220,000 to do EVERY thing else.
A safe assumption is $200/sqft to build, that mean the home will be less than 1200sqft ASSUMING you don't run into major permitting or building issues. Yes, I know the manufactured home might be $75k to $150k+ but even at $75k that's just the materials, you still need a foundation, carpentry, permits, possibly a well and septic, a driveway, a garage, landscaping, connection to utilities, etc...
Honestly, you will be hard pressed to build for $575k, and if you can't afford cost over runs... don't start the project. By the way, my math is based upon 3.75% but the loans on the land and during the construction period are at a significantly higher % rate, because the risk is so high for the lender if you start the project and don't finish.
So, now perhaps you have a sense for why my Blog is the GetRealReator http://www.GetRealRealtor.com. But better to be well informed up front an make an informed decision.
If you'd like to talk more call or email me!