How much cash do I need to buy a $900K home in San Jose?

Plan for roughly $106,000 with 10% down or roughly $196,000 with 20% down on a $900,000 San Jose purchase, including the down payment, lender fees, title, escrow, prepaid interest, and property tax and insurance reserves. Add up to $27,000 more if you end up paying buyer agent compensation yourself. See the cash-to-close table above for the full breakdown.

Is 10% or 20% down better in the Bay Area?

Neither is automatically better. On a $900,000 home, 20% down uses about $90,000 more cash upfront but lowers the estimated monthly housing cost by roughly $900 and typically removes PMI — see the comparator above for the exact numbers on your scenario. 10% down keeps more cash available but adds PMI and a higher monthly payment. The right choice depends on how much cash you have and whether you value a lower payment or a larger reserve.

Should I pay mortgage points?

Pay points only if you expect to keep the loan long enough to recover the upfront cost. In a typical example, $7,000 in points that saves $150 a month breaks even in about 47 months — selling or refinancing sooner erases the benefit. If you might move or refinance within a few years, a lender credit or a no-points quote is usually the safer comparison.

Is FHA or conventional better for a first-time buyer?

Conventional with as little as 3% down usually fits buyers with good credit best, since PMI may cost less than FHA mortgage insurance for well-qualified borrowers and cancels once you reach enough equity. FHA's 3.5% minimum down payment and more forgiving credit and debt-to-income requirements make it more accessible when conventional underwriting is difficult, but FHA mortgage insurance can last for the life of the loan unless you put down 10% or more.

What down-payment assistance is available to Bay Area first-time buyers?

CalHFA's MyHome Assistance Program is the main statewide option currently open: a deferred second loan of up to 3.5% of the purchase price with an FHA first mortgage, or up to 3% with a conventional first mortgage. Some Bay Area cities run their own programs too. Check the CalHFA guide and the city-by-city programs directory linked below for current eligibility — some past programs, like California Dream For All, are closed to new applicants right now.

Loans

Bay Area first-time home buyer loans: compare mortgage options and costs

Q: When does a San Jose mortgage become jumbo?

A Santa Clara County mortgage becomes high-balance conforming once the loan amount exceeds $832,750, and jumbo once it exceeds the 2026 one-unit conforming limit of $1,249,125. That limit is about loan size, not your down payment percentage — down payment minimums above that line are set by the individual lender and loan program, not a fixed rule, so ask lenders directly once your loan amount is likely to cross it.

Down payment is only the first number. Compare loan types, cash to close, interest rate, APR, points, lender credits, and monthly housing cost — using real San Jose purchase examples — before choosing a Bay Area mortgage.

Start here

Which loan should I actually be comparing?

Everything below goes deep — start here to find which sections matter most for your situation.

Your situation	Start with
Good credit, 5%+ down available	Conventional
Down payment is the biggest obstacle	3% conventional or FHA, then CalHFA MyHome assistance
Credit or debt-to-income make conventional hard to qualify for	FHA
Eligible veteran, active-duty service member, or surviving spouse	VA
You may sell or refinance within 5-10 years	Compare Fixed vs. ARM using the break-even math
Loan amount is likely to exceed $1,249,125 in Santa Clara County	High-balance / jumbo — ask lenders directly, not a fixed rule

Try it yourself

Compare two loan scenarios side by side

Pre-filled with the $900K San Jose example below — change the numbers to match a home you're actually looking at.

The home

Shared between both scenarios below — change these to match a listing you're looking at.

Home price ($)

Property tax (%/yr)

HOA ($/mo)

Scenario A

10% down · Conventional

Down payment

Loan type

Loan term

Interest rate (%)

Points paid ($, optional)

Scenario B

20% down · Conventional

Down payment

Loan type

Loan term

Interest rate (%)

Points paid ($, optional)

Factor	10% down · Conventional	20% down · Conventional	Difference (B − A)
Down payment	$90,000	$180,000	$90,000
Loan amount	$810,000	$720,000	-$90,000
Principal & interest	$5,187	$4,610	-$577
PMI (monthly)	$338	$0	-$338
Total monthly payment	$6,662	$5,748	-$914
Cash to close	$125,823	$213,995	$88,172

Educational estimate only, not a loan approval, rate quote, or financial advice. Uses the same default assumptions as the mortgage payment calculator — enter a lender's real Loan Estimate for accurate numbers.

Down payment assistance

Check assistance before you finalize a loan program

If down payment is the biggest obstacle, CalHFA's MyHome Assistance Program is the main statewide option currently open, and some Bay Area cities run their own programs too. Confirm eligibility and which programs are actually open — some, like California Dream For All, are closed to new applicants right now.

Jump to a city

San Jose Fremont Santa Clara Newark Hayward Milpitas Other cities →

San Jose, Fremont, Santa Clara, and Newark have a full research page. Other cities open the assistance directory pre-filtered to state and county programs that apply there — most Bay Area cities don't have their own city-specific program.

How CalHFA's MyHome actually works

MyHome is a second loan, not a standalone grant — it must pair with a CalHFA first mortgage. Real income limits and current program status.

Read the CalHFA guide

City-by-city assistance programs

What we could verify about first-time buyer assistance in Newark, Fremont, San José, and Santa Clara, with official sources.

Browse city programs

All Bay Area assistance programs

The full first-time homebuyer assistance directory, beyond CalHFA and city programs.

See all programs

Real buyer budget

Initial cash and monthly cost are separate decisions

A $900,000 San Jose purchase can require more than the down payment at closing. Use these estimates to separate cash to close, monthly housing cost, and lifetime loan interest.

Cash to close

For a $900,000 San Jose purchase, plan for down payment plus lender fees, title, escrow, prepaid interest, property tax reserves, insurance, and possible transfer-tax negotiations.

Monthly housing cost

The mortgage payment is not the full monthly cost. Property tax, insurance, PMI, and HOA can materially change what the home feels like month to month.

Cash to close

Estimated initial cash needed for a $900K San Jose home

These are planning estimates for buyer-side costs before any seller credits, lender credits, rate buydowns, repair credits, or negotiated transfer-tax responsibility.

Scenario	Down payment	Estimated closing/prepaids	Estimated cash to close	Possible buyer agent comp	Cash to close if buyer pays 2.5% agent comp	% of purchase price
Single-family, 10% down	$90,000	$16,269	$106,269	$0-$27,000	$128,769	11.81%
Single-family, 20% down	$180,000	$16,022	$196,022	$0-$27,000	$218,522	21.78%
Condo, 10% down + $400 HOA	$90,000	$17,269	$107,269	$0-$27,000	$129,769	11.92%

Buyer agent compensation is not set by law and is fully negotiable. Since August 17, 2024, many buyers sign a written buyer agreement before touring homes; that agreement should spell out how the buyer agent is paid and whether seller-side compensation or concessions may offset the buyer's obligation.

Closing costs

What the extra cash is usually for

Closing costs are not one fee. They are a bundle of lender, title, escrow, recording, prepaid interest, property tax, insurance, and sometimes HOA-related charges.

Item	Planning estimate	% of purchase price	How to think about it
Down payment	$90,000 or $180,000	10% or 20%	The largest cash need. This is separate from closing costs.
Possible buyer agent compensation	$0-$27,000	0%-3%	Negotiable and contract-dependent. If not covered by seller/listing-broker compensation or concessions, the buyer may need to pay it.
Lender fees	$4,500	0.50%	Planning placeholder for origination, underwriting, processing, or similar lender charges.
Appraisal, credit, flood, tax service	$900	0.10%	Third-party loan costs vary by lender and loan program.
Title, escrow, settlement	$3,000	0.33%	Title insurance, escrow, and settlement fees vary by county, provider, and contract.
Recording, notary, wire	$350	0.04%	Small government and transaction fees.
Prepaid interest	$1,959-$2,206	0.22%-0.25%	Depends on closing date, loan amount, and interest rate.
Property tax impounds / prepaid tax	$2,813	0.31%	Planning placeholder using three months at about 1.25% of purchase price per year.
Home insurance prepaid / escrow	$2,500	0.28%	Single-family and condo insurance can price differently.
Condo HOA docs / transfer / reserve	$1,000	0.11%	Condo-only planning placeholder. Actual HOA fees vary widely.

Rate vs. cash

Lower rate vs. lower closing cost

A lower interest rate can reduce the monthly payment, but it may require points paid upfront. A lender credit can reduce cash to close, but it usually raises the rate. The right answer depends on how long you expect to keep the loan.

Choice	Rate effect	Closing cost effect	Best when
Pay points	Lower interest rate	Higher cash to close	You expect to keep the loan long enough for monthly savings to repay the upfront cost.
No points	Middle option	Cleaner comparison	You want a quote that is easier to compare across lenders before deciding whether to buy down the rate.
Use lender credit	Higher interest rate	Lower cash to close	You need to preserve cash, may sell soon, or may refinance before a lower-rate option pays off.

Points

1 point usually equals 1% of the loan amount. On an $810,000 loan, one point is about $8,100 paid at closing.

Break-even timeline

If points cost $7,000 and save $150 per month, the simple break-even is about 47 months. Selling or refinancing before then can erase the benefit.

APR

APR is better than rate alone because it reflects points and lender costs, but it still does not know your real exit plan.

Loan Estimate Section A and B is where lender-controlled costs make quotes most clearly differ, so request a Loan Estimate from each lender and compare those sections directly. Taxes, insurance, HOA, and escrow deposits still matter for your overall monthly budget.

Monthly cost

Estimated monthly payment after adding tax, insurance, PMI, and HOA

These monthly estimates use the 30-Year Fixed examples below. They exclude utilities, maintenance, repairs, Mello-Roos, special assessments, and income-tax effects.

Scenario	P&I	Property tax	Insurance	PMI	HOA	Estimated monthly
Single-family, 10% down	$5,187	$938	$200	$338	$0	$6,663
Single-family, 20% down	$4,610	$938	$200	$0	$0	$5,748
Condo, 10% down + $400 HOA	$5,187	$938	$200	$338	$400	$7,063

San Jose taxes

Transfer taxes can exist even when they are not in your buyer total

At $900,000, San Jose Measure E is not triggered, but Santa Clara County documentary transfer tax and San Jose city conveyance tax still matter because the purchase contract decides how costs are allocated.

Item	Estimate on $900K	% of purchase price	Note
Santa Clara County documentary transfer tax	$990	0.11%	$0.55 per $500 of consideration.
San Jose city conveyance tax	$2,970	0.33%	$1.65 per $500 of consideration.
San Jose Measure E real property transfer tax	$0	0.00%	A $900,000 purchase is below the $2.3M threshold effective July 1, 2025.
If county + city transfer taxes shift to buyer	$3,960	0.44%	Often contract/custom dependent. This table keeps it separate from buyer cash-to-close totals.

Source check: Santa Clara County lists county documentary transfer tax and San Jose city conveyance tax rates. San Jose Measure E applies above the city threshold, which is $2.3M effective July 1, 2025. Always confirm the final allocation in the purchase contract and escrow estimate.

$900,000 single-family home, 10% down

The cheapest monthly payment is not the cheapest loan

Assume a Bay Area single-family home purchase price of $900,000 with 10% down. That means $90,000 down and an $810,000 mortgage before closing costs.

Loan option	Monthly payment	Total amount paid	Total interest	Rank
10-Year Fixed	$8,993	$1,079,119	$269,119	1st - lowest total cost
15-Year Fixed	$6,945	$1,250,123	$440,123	2nd
20-Year Fixed	$5,980	$1,435,124	$625,124	3rd
30-Year Fixed	$5,187	$1,867,147	$1,057,147	4th - highest total cost

Example rates only. Mortgage rates change frequently, and the best option depends on your credit, down payment, loan amount, property type, points, fees, and cash-flow comfort.

$900,000 single-family home, 20% down

More down payment lowers the loan, but uses more cash upfront

With 20% down, the same $900,000 single-family home means $180,000 down and a $720,000 mortgage before closing costs. The 30-Year Fixed example falls to about $4,610 per month before taxes and insurance.

Loan option	Monthly payment	Total amount paid	Total interest	Rank
10-Year Fixed	$7,993	$959,217	$239,217	1st - lowest total cost
15-Year Fixed	$6,173	$1,111,220	$391,220	2nd
20-Year Fixed	$5,315	$1,275,665	$555,665	3rd
30-Year Fixed	$4,610	$1,659,686	$939,686	4th - highest total cost

10% down

Lower cash needed upfront, but the example mortgage is $810,000 and may include PMI depending on loan type and lender pricing.

20% down

Higher cash needed upfront, but the example mortgage drops to $720,000 and may avoid PMI on many conventional loans.

$900,000 condo example

A condo can have the same loan payment but a higher monthly housing cost

Assume the same $900,000 purchase price, 10% down, and $810,000 mortgage, but add a $400 monthly HOA. Property tax, insurance, PMI, utilities, and special assessments are still separate.

Loan option	Principal & interest	Monthly HOA	Monthly before tax/insurance	P&I + HOA over loan term
10-Year Fixed	$8,993	$400	$9,393	$1,127,119
15-Year Fixed	$6,945	$400	$7,345	$1,322,123
20-Year Fixed	$5,980	$400	$6,380	$1,531,124
30-Year Fixed	$5,187	$400	$5,587	$2,011,147

Single-family example

A $900,000 single-family home with 10% down uses the same $810,000 mortgage assumption, but there is no HOA line item in this simplified comparison.

Condo example

With a $400 HOA, the 30-Year Fixed example rises from about $5,187 to about $5,587 per month before property tax, insurance, PMI, and utilities.

Fixed-rate loans

Fixed loans keep the rate stable

A fixed-rate mortgage is the simplest structure: the rate does not change. Shorter terms usually have higher monthly payments but lower total interest over the life of the loan.

Loan term	Example rate	Monthly payment per $1,000	Best for
30-Year Fixed	6.625%	$6.40	Lowest monthly payment
20-Year Fixed	6.375%	$7.38	Medium payment
15-Year Fixed	6.250%	$8.57	Higher payment, faster payoff
10-Year Fixed	6.000%	$11.10	Highest payment, quickest payoff

Illustrative example, not a current quote

These rates are hypothetical examples used to compare loan structures — not today's market rate or an offer from a lender. Mortgage rates move daily; request a current Loan Estimate from at least 2-3 lenders before comparing real numbers.

Adjustable-rate loans

ARMs start fixed, then can change

An ARM can start with a lower payment, but the rate can adjust after the fixed period. It can make sense when you have a clear plan to sell or refinance, but it adds future rate risk.

Loan type	Starting rate	Fixed period	Lifetime cap	Payment per $1,000
3-Year ARM	5.750%	First 3 years	10.750%	$5.84
5-Year ARM	5.875%	First 5 years	10.875%	$5.92
7-Year ARM	6.000%	First 7 years	11.000%	$6.00
10-Year ARM	6.125%	First 10 years	11.125%	$6.08
5/5 ARM	5.750%	First 5 years	10.750%	$5.84

Illustrative example, not a current quote

Starting rates and caps above are hypothetical examples, not current offers — ARM pricing and margins vary by lender and can move daily.

Buyer timeline

Your mortgage choice should match your exit plan

The most stable loan is not always the most strategic loan. If you may sell or refinance within 10 years, a 10/6 ARM can be rational when the upfront savings are real and the adjustment risk is planned for.

Expected time in home	Loan strategy to compare	Why it matters
0-5 years	Lower closing cost or lender credit	If you may sell or refinance quickly, paying thousands upfront for points may not have enough time to break even.
5-10 years	Compare 30-Year Fixed vs. 10/6 ARM	A 10/6 ARM can be rational if the starting rate is meaningfully lower and you have a believable exit plan before the adjustment period.
10+ years	30-Year Fixed or paid points	Longer holding periods make payment certainty and break-even math more valuable, especially if you do not want refinance timing risk.

Use this as a planning framework, not a rule. Job changes, family plans, refinance windows, condo resale risk, and Bay Area price volatility can all change the answer.

Second mortgages

Home equity loans and HELOCs are different from your first mortgage

Home equity loans and HELOCs are usually second liens against a home you already own. They are not the same thing as a CalHFA subordinate loan for a purchase.

Loan type	Example rate	Monthly payment per $1,000
15-Year Fixed Home Equity	7.000%	$8.99
20-Year Fixed Home Equity	7.125%	$7.83
Adjustable Home Equity	6.500%	$8.71 starting

HELOC

A HELOC example rate here is 6.750%. The rate can change, and many HELOCs are interest-only at first, so the monthly payment can understate the long-term repayment cost.

Down payment

When does a San Jose mortgage become jumbo?

Bay Area purchase prices routinely push loan amounts above the conforming loan limit. That limit is about how big the loan is — it is a separate question from how much down payment a specific program requires.

2026 Santa Clara County one-unit conforming loan limits

Standard conforming tops out at $832,750. Loans from $832,750 up to $1,249,125 are "high-balance" conforming. Above $1,249,125, a loan is jumbo. Source: FHFA's 2026 conforming loan limits by county.

Down payment is not set by this limit

Minimum down payment above the conforming limit is set by the individual lender and loan program — factors include your credit, reserves, debt-to-income, and occupancy. There is no fixed rule mapping a down-payment percentage to a maximum loan amount. Ask lenders directly once your loan amount is likely to cross the limit above.

Loan products

Common first-time buyer loan structures

Once you understand monthly payment vs. total cost, compare the actual loan products that show up in first-time buyer conversations.

Conventional 3% down

Fannie Mae HomeReady / Freddie Mac Home Possible. Lower down payments for buyers with moderate income and good credit.

Pros

PMI may cost less than FHA mortgage insurance for well-qualified borrowers
Available for condos and townhomes
Seller credits allowed

Cons

Credit requirements are stricter
Income limits on some programs
Rates vary widely

FHA loan

Government-backed loan with a 3.5% minimum down payment and more forgiving credit requirements.

Pros

Lower credit score floor
Higher debt-to-income flexibility
Common for first-time buyers

Cons

Upfront and monthly mortgage insurance
Condo projects must be FHA-approved
Lifetime MI unless 10%+ down

VA loan

For eligible veterans and service members. Zero down payment and no mortgage insurance in most cases.

Pros

0% down
Competitive rates
No monthly PMI

Cons

Only for eligible veterans / active duty / surviving spouses
VA funding fee
Some condos not approved

10/1 ARM

Fixed for 10 years, then adjusts annually. Can make a stretch purchase work short-term.

Pros

Lower starting rate than 30-year fixed
Good if you plan to move or refinance

Cons

Rate risk after year 10
Budgeting uncertainty long-term

Loan details change frequently. These summaries are for education only, not loan approval or financial advice. Compare official Loan Estimates from at least 2–3 lenders before choosing.

Lender research

How to get the best mortgage rate as a Bay Area first-time buyer

Rate shopping is useful, but the lender fit question is bigger for first-time buyers: points, lender fees, preapproval speed, condo comfort, and whether a CalHFA-approved lender or loan officer is required for the assistance you want.

Better.com mortgage rates explained

See why a lower displayed interest rate can raise closing costs, and how to compare points, APR, lender credits, and break-even timing.

Read the Better.com rate guide

Bay Area lender comparison guide

Use the 150-lender research guide to compare rate, APR, points, fees, lock period, condo fit, and first-time buyer program experience.

Read the lender research

FAQ

Bay Area mortgage questions first-time buyers ask most

Direct answers, pulled from the examples and figures above.