Income Needed to Buy in San Jose
Common Question: 'How much income do I need to buy a house in San Jose?' Based on the median home price of $1,250,000, lenders typically look for an annual household income of roughly $87,500. This ensures your payment stays below 28% of your gross pay.
Closing Costs in California
Don't forget cash to close. In California, buyer closing costs typically range from 2% to 5%. For a home in San Jose, you should budget between $25,000 and $62,500 on top of your down payment.
Rent vs Buy in San Jose
Is it better to rent or buy in San Jose? With a calculated monthly payment of ~$8,750, buying is currently more expensive monthly than the average rent. However, buying locks in your housing cost against future California inflation.
Hidden Costs: Property Taxes
Generic calculators often get San Jose wrong because they underestimate taxes. Our San Jose Mortgage Calculator uses the specific California property tax rate of 0.75%, which adds roughly $781/mo to your real payment.
First-Time Buyer Tips (FHA & PMI)
First-time buyers in San Jose often utilize FHA loans. Note that putting less than 20% down will trigger Private Mortgage Insurance (PMI), which can add 0.5-1% annually to your loan balance until you reach 20% equity.