How on earth do people afford to buy in SF? (rant) (San Francisco: sales, student loan)

[Ultrarunner]

Originally Posted by DocGoldstein

I haven't had to finance anything for a long time, but back when I wasn't retired, I never had problems financing a car, or getting financing for office space. But then again, I've never put my money into the big box banks like BofA, Chase, etc.

Never financed anything other than a First Mortgage...

Cars were always cash and never made any big ticket purchases...

Kind of disillusioned at the lending come ons and just say to myself they are for other people...

My last loan was in 2005 and it was the only loan experience that I can say was a pleasure... this is the loan I was hoping to pay down and refi at a 2.75 15 year rate...

If push comes to shove, I could always pay it off and be done with lenders

Part of my problem is I can live anywhere... had troubles when I was leaving a nice house to buy and renovate a dump... lenders said no one would do this... well, I would and do.

I have always avoided SF and Berkeley property... one city with rent control is enough for me...

[DocGoldstein]

Originally Posted by eastbayhopeful

As I said before, if your situation is unconventional or difficult to figure out, the bigger banks won't deal with it. Plus their loan agents are pretty much anyone with a real estate license, most can hardly be considered financial professionals. I am not a loan agent and I can move a loan with W-2 salaried borrowers through from start to finish with little help from the agents. It's the self-employment (not schedule C sole proprietors) and multiple properties that take more time and brain power. If you do your research and don't fall for the advertising gimmicks, you can find a great rate at a lender that will close your loan. Period.

This is good advice for self-employed people.

BofA, and the like will not finance you even if you put hundreds of thousands of dollars into a checking account they service.

I only keep a BofA checking account with a small balance just for the convenience. But the bulk of my liquid assets are in other more competent places than a big box bank.

[Ultrarunner]

Originally Posted by DocGoldstein

This is good advice for self-employed people.

BofA, and the like will not finance you even if you put hundreds of thousands of dollars into a checking account they service.

I only keep a BofA checking account with a small balance just for the convenience. But the bulk of my liquid assets are in other more competent places than a big box bank.

Last year I was looking at a property and came to know the successful buyer...

He said for years, Wells Fargo had assigned him a personal Banker... found it to be annoying.

Anyway, when he decided to buy this million dollar property he put in a call to the personal banker and told her it was crunch time... was not expecting much.

To his surprise, Wells came through... the one stipulation was that he agreed to maintained combined balances of several hundred thousand dollars...

He said Wells made the loan as a portfolio lender and B of A doesn't operate this way...

I don't do business with Wells... but, maybe all the banks are not alike...

[DocGoldstein]

Wells is worse. Probably the strictest out of them all besides maybe Union Bank.

[Ultrarunner]

Three years ago, I was looking at an apartment... know a few people at Union Bank and I was surprised they agreed to do the loan... it was a variable and the rate was 3% over a typical home rate at the time.

Union didn't seem difficult, just expensive.

I passed on the property.

[eastbayhopeful]

I mostly encounter UB jumbo deals. Jumbos have a lot of requirements as is but UB seems on par with other jumbo banks. Their pricing also isn't far off from the rest so I'm not sure what variables were involved. Are you talking about 3% over a primary home rate? Investment properties finance at a higher rate but I'm not so sure about 3 points over. I wonder what condition it was rated, for instance a C4 (very poor) can be financed at some banks but it will slaughter your rate. That is, unless you get creative and broker somewhere which UB does not.

Wells is hit or miss from what I have heard.

[TrvlGrl1234]

Dear- bebOp

I would love to know where these jobs of this calliber are and combined salary + savings. My experience is not the numbers you state.

My partner and I are in our mid 30's we have been saving what we can for over 10 years. Our combined income is less than 7,000/mo. in SF and we are hardly scraping by some months we can't make our bills. The most lavish thing we do is see a movie 2x/month and a nice dinner occasionally. Our combined savings is well under 30K and we DO NOT live laveshly. We haven't owned a TV in 12 years b/c we just can't afford it.

We both of students loans and our cars are old but paid off- we don't even have the cars in the state b/c parking is 400-600/month where we live in the city.

We cook 90% of our meals at home, when I go out w/friends or movies I sneak my own drinks in so I don't have to spend money I don't have.

I bike to work to cut down on commuter cost, and we live next to my partners work so he doesn't have commuter cost.

One of us just took a new job in south bay for hopes of saving a dime and are now looking at a 4 hour commute daily b/c we can't even afford to move out of our place b/c rent has increased so f* much in the last 5 years. We would need an extra 10K/year just to be able to move into a new place in south bay... just when I thought SF was the most expensive place in the US I now see that Silicon Valley is even worse.

If I could do it all over again I would never have moved to SF...its just not worth the stress, and quality of life that you get for your money. Looking at any chance I can to get out. We moved here 6 years ago and it destroyed our savings just to get here, our quality of life is the lowest it's ever been and I've lived in 12 states and 4 countries. I just don't recommend SF or the bay area to anyone unless you are making 200K/year or higher for a couple you would need 250-300K/year to live a moderate lifestyle, especially if there are student loans, any debt or car payments. ITS NOT WORTH IT F* SF!!!

[TrvlGrl1234]

Some of our friends have gotten a 100K loan on top of a house mortgage. We are in the same boat and really struggling to see a way out of SF, let alone owning a home or ever getting ahead. Praying for a work remote situation that allows us to move out of the Bay Area.

[TrvlGrl1234]

Where can I find a family who will gift me money Feeling hopeless!

[likealady]

Originally Posted by TrvlGrl1234

Dear- bebOp

I would love to know where these jobs of this calliber are and combined salary + savings. My experience is not the numbers you state.

My partner and I are in our mid 30's we have been saving what we can for over 10 years. Our combined income is less than 7,000/mo. in SF and we are hardly scraping by some months we can't make our bills. The most lavish thing we do is see a movie 2x/month and a nice dinner occasionally. Our combined savings is well under 30K and we DO NOT live laveshly. We haven't owned a TV in 12 years b/c we just can't afford it.

We both of students loans and our cars are old but paid off- we don't even have the cars in the state b/c parking is 400-600/month where we live in the city.

We cook 90% of our meals at home, when I go out w/friends or movies I sneak my own drinks in so I don't have to spend money I don't have.

I bike to work to cut down on commuter cost, and we live next to my partners work so he doesn't have commuter cost.

One of us just took a new job in south bay for hopes of saving a dime and are now looking at a 4 hour commute daily b/c we can't even afford to move out of our place b/c rent has increased so f* much in the last 5 years. We would need an extra 10K/year just to be able to move into a new place in south bay... just when I thought SF was the most expensive place in the US I now see that Silicon Valley is even worse.

If I could do it all over again I would never have moved to SF...its just not worth the stress, and quality of life that you get for your money. Looking at any chance I can to get out. We moved here 6 years ago and it destroyed our savings just to get here, our quality of life is the lowest it's ever been and I've lived in 12 states and 4 countries. I just don't recommend SF or the bay area to anyone unless you are making 200K/year or higher for a couple you would need 250-300K/year to live a moderate lifestyle, especially if there are student loans, any debt or car payments. ITS NOT WORTH IT F* SF!!!

You have got to be trolling.

While yes, I agree a 200K+ situation is ideal, it can definitely be done for under that. Maybe not buying a house right now, but renting yes.

My husband and I make <7000 /mo. We cook 90% of our meals at home and go to the movies maybe once a month. Husband takes public trans to work, I used to drive (hefty commuting cost). I'm using a ~3 yr old cell phone, a 4yr old computer, and don't buy a lot of new clothes or doodads. We have a tv with a digital antenna and a netflix subscription. I have more money in my personal savings account than you & your partner have combined, and neither my husband or I are rolling in the dough. Should rent increase we'll start to feel the crunch, but for now we're doing alright.

Maybe you need to take a personal finance class.