Things have been rough for first time home buyers in Silicon Valley. Lenders have been tightening requirements for months, demanding larger down payments and more perfect credit than at any time in the last 10 years. This is true all across Santa Clara County, from Evergreen to Saratoga to Cambrian Park and South San Jose. Money is tight.
For those hoping to get into a single family home for under $500,000, which is possible in some parts of San Jose right now, there’s real improvement in affordability over the prices we saw a year ago. But that’s only true if you can buy! Don’t be discouraged – if you want to buy, now’s the time to begin planning.
What do you need to do to be able to take advantage of the soft Silicon Valley real estate prices?
- Cash is king, especially now – so save for that down payment
- If necessary, consider buying your first home with your parents’ help. They can put down some of the downpayment and be on title with you and you can pay them back over time. Of course, consult a real estate attorney to set this up!
- Check into the first time homebuyer programs available in your city or town
- Meet with a good lender (who comes to you by referral) to work out a plan to buy, clean up any credit issues, and investigate any other opportunities for assistance (such as programs for teachers, firefighters, police officers, and other city or county employees)
Call or email me if you’d like to talk about the possibilities of buying a home in today’s Silicon Valley real estate market!