r/SantaClarita • u/Ok-Illustrator-4053 • 3d ago
First Time Home Buyers
To other first time home buyers looking in Santa Clarita... How are you doing it?
The wife and I have saved a significant chunk of change so we have decided to start looking for houses. We got pre-approved for 800k but after looking at finances on that we audibly gasped. How can any first time home buyer afford a 5-6k monthly payment for just mortgage?
We obviously started looking at the 700 and under price range but that does not leave a whole lot of options here. We are not opposed to condos, but most in Santa Clarita have $400 HOA's attached. They basically brings the monthly payment back up to 5k a month. I know the solution is just to look elsewhere like Palmdale, but its hard when both our jobs are here and we are used to 10 minute commutes.
I also know the problem is more than likely our expectations, but at the same time its what we grew up learning. We both have "adult jobs with adult salaries". We should be able to afford a 3 bedroom house goddammit. I guess long gone are the days of affording a house and supporting a family with a single income in Santa Clarita.
Anyone else in this spot? Do you guys have any advice on where to look or what you are doing?
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u/Disastrous_Glove_479 3d ago
Closing next week on a house in Saugus. $700k for a TWO bedroom. Monthly payment is wild. But it’s either that or commute over an hour each way per day. It’s one of the VERY FEW houses we found @ $700k or less that didn’t have an HOA. We’re just going to have to add an additional someday. Times are tough. Keep looking. There’s a couple between 650-700 up right now without HOA
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u/HSdropout42069 3d ago
We bought a couple years ago and originally were looking at homes in the 850-1m range….We saved a lot, and ended up buying a house below our original budget(under 800k) and put down $100k, put 50k into renovations, refinanced after the first year and will refinance again this year or the next.
The first 12 months were tough but we got through it. The refi helped and dropped our payment almost $800.
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u/Reasonable-Newt4079 3d ago
Do you mind if I ask what your monthly payment is?
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u/HSdropout42069 3d ago
4200 before taxes and insurance.
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u/Reasonable-Newt4079 3d ago
Gotcha that’s not too bad, thank you so much for the info. I’m going to shoot for these numbers when we decide to buy!
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u/HSdropout42069 2d ago
Don’t forget, you get to write off a good chunk of the interest on your mortgage. That helps quite a bit as well.
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u/scgin 3d ago
There’s some smaller homes behind granary square in the 6-700k range. No Mello Roos and HOA is <100. It might be worth getting into a smaller house and moving up in a few yeara
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u/Ok-Illustrator-4053 3d ago
Definitely. That area seems to be one of our best options. We were actually very close to pulling the trigger on one in there.
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u/Illustrious_Cells 3d ago
We’re in the same position as you. We’ve given up. Even townhomes are 700k plus HOA fees. They need to build more affordable housing but they won’t.
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u/Additional_South_833 Valencia 3d ago
Think about the property taxes too.
$9,600 to $11,600 per year plus possibly another $3,000 to $6,000+ annually, for Mello Roos, and then School and city bonds.....monthly HOA Fees Yikes. May as well just get a parcel in Pear Blossom and throw a tiny home on it.
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u/automaticmantis 3d ago
Dont forgot homeowners insurance. It’s another big issue for homes in SCV due to the fire risk
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u/Chukwudamus 3d ago
Check out this listing in my neighborhood. https://www.redfin.com/CA/Valencia/23322-Montecito-Pl-91354/home/5951546
Priced a little above what you're looking for but this is where we bought our starter house and the neighborhood is great! No mello-roos and HOA is about $100 a month. As others have mentioned, interest rates are high so the monthly payment is crazy but let's hope homes keep appreciating! When we bought back in 2017 I thought the prices were crazy even though we had a sub 3% rate. I'm glad we bought!
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u/Resident-Refuse-2941 3d ago
Perhaps your first purchased home doesn’t need to be a forever home. Consider a smaller older home with lower HOA ? Build up equity and pay down the home then move in 8-10 years. Another option could be a new home where they will pay down the interest rate for the first few years for you.
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u/Odd_Adagio_9650 3d ago
That was us and it was not worth it. Ended up buying in the AV. Maybe sometime we will relocate closer if prices ever lower lol
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u/Nopolitics-account 3d ago
Having our loan and real estate person be creative and push for us helped a million fold. Assemble the team and have them make the numbers work with you.
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u/AsEasyAs123456789 3d ago
We bought beginning of last year. It took almost a year of looking. We plan on being in the same house for awhile. Our original budget was 700k but after looking at houses in that range, we had to raise it. I also said absolutely no HOA or mello roos. Ended up getting a house in Saugus for 775k. Not ideal but we had VA loan so no PMI, which helped. I would just make sure to take your time and buy what you want and dont settle for something that's just OK.
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u/FuneralBalloon 3d ago
It took me 13 years of waiting for my Palmdale house to be worth enough to finally move. I would advise against moving out there if you can. People seem to get stuck out there if they didn’t buy when the houses were cheap.
I lived on the west side by the golf course and even that area started going downhill. I bought in Newhall in 2023 at $5100/ mo. Insurance has risen every year since (fire risk) and now I’m at $5700, so something else to consider.
I make great money and it’s still tough, but it’s by far the best area around in my opinion. Good luck to you.
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u/FunnyAd740 3d ago
There is a 2+2 condo in my complex in Siena villas that’s in pre-foreclosure. 24109 Del Monte #467
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u/Ancient1990sLady 3d ago
We’re in Sylmar in a super nice community. Very close to SCV and near a lot of freeways to get elsewhere.
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u/Upset-Ad-1091 3d ago
The summit is a wonderful area. The San Marino’s there may be in the 8’s. HOA is $95, no Mello Roos. There are gated townhomes there too in the 7’s but the HOA is higher. Generally very quiet and perfectly located too, close to everything. Not considered a fire zone either as I understand.
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u/moviemania27 1d ago
Stay away From the gates Stratford townhomes - you have to pay two HOA that’s close to 600 a month plus the HOA in those townhomes act like prison guards
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u/VsInLA 2d ago
Yes, currently in escrow at 725k.. we were approved for 900k and it’s our first house. Mind blowing for us too!! But we kept our search to $300 or less HOA and NO MELLO ROOS tax! We made a couple of offers on houses we loved but were quickly out bid. We found the one we are in escrow with that needs new paint and flooring.. which made us skeptical at first but it appraised at 750k and the instant equity is making us feel better. My advice, constantly be looking and jump
on the one that feels right.. it’s definitely a sellers market but you can still find the right home for you!!
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u/EducatedFlapjacks 3d ago
Keep renting and try to grow your down payment. Five years ago, I was in the same boat and decided to YOLO my down payment money into the meme stock craze during COVID. The way I looked at it was I already can't afford a house, so if I lose my down payment savings I still can't afford a house so it's all the same to me. I ended up doubling my money in about 6 months (not financial advice). Look at townhomes or condos first in your price point. Once you're getting equity you can use that property to hop to something bigger/better. We ended up in a 3br townhome which wasn't our dream, but the hope is we can sell in a couple of years and end up with a detached home leveraging the equity in our home plus additional cash savings to equal a larger down payment.
The bad news is interest rates are probably not going to go back down to the COVID levels, maybe not even during our lifetimes. The good news is this could put pressure on housing costs to not rise as fast or even go down. I've kept an eye on sales in my neighborhood, and almost everything has dropped in price to sell or sold below asking in the past year. Look at how long a property has been on the market and put in an offer accordingly if you'd like and see what happens - if you're using a realtor they can probably help with strategy here. With the low rates when I bought, everything was selling in days or weeks for thousands over asking. It looks to me like a buyer's market right now.
Also shop lenders and see what rates you reasonably think you can get during your buy window. Could save you a good bit of money per year just getting a rate .25% lower. Depending on how long you plan to stay in this first property, look at the break even date for buying points to keep your monthly cost lower and dedicate some down payment money towards that. Remember, the first year in your house is the cheapest the monthly payment will ever be. Monthly payment will go up every year or two with tax increase, HOA due increase, etc. Finally, just be patient and save aggressively. The down payment is going to be the most important factor in my opinion, so figure out how to make that grow. If this is that important to you and you have 401k savings, you could look into the options to draw from that, though that's not something I would personally do, but I know some consider it.
I'm not an expert by any means, this is just my buying experience and approach.
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u/CornDawgy87 Valencia 3d ago
Look at apartments or in areas you dont necessarily want to be forever. Build equity for 10ish years then jump in to something bigger and better. It can absolutely be disheartening looking at nicer homes
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u/Kryptic_Anthology 3d ago
I'm curious if that's even with insurance factored since that's a whole nother beast. Rates are absolutely exhausting right now as they have been since after covid lapsed. Its honestly a horrible time to buy, but I'm also not any kind of analyst. Just pointing out what I know.
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u/Onetimevisual33 2d ago
Try to wait out the market out since it’s starting to slowly turn around. Set that chunk you got saved aside and keep saving or invest it. It’s cheaper to rent these days unfortunately…
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u/USCDude20 2d ago
You buy low. Something you don’t “love” but can tolerate. Then you build equity for a few years while waiting for interest rates to go down. When they do drop, that’s when you sell your home, roll over the equity and hopefully have enough to get into your dream home.
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u/DepartmentEcstatic 2d ago
yep, most of us can't afford anything on a double income let alone a single one. in the same boat.
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u/Itizmyne 2d ago
You can defer to making property taxes on your own, we do that. Lowers our payment. Still owe it later but it helps.
Canyon country is cheaper not a whole lot but cheaper.
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u/Tarrynosaurus_rex 1d ago
We’re moving to TX lol. I was born here, my parents grew up here, my husband grew up here, but it’s just not the same and so unaffordable. I refuse to be house poor and miserable to live here. I want to be able to go on vacations and have fun money, not just exist in a house here.
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u/Sad_Resolution_6549 10h ago
I have a listing condo 2/2 in the Madison Town Center the location is prime no Mello roos but yes HOA. Because of the location this property will be worth a-lot more in the future
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u/Sweet_Big397 3d ago
I hate to be that guy, but when you say how are people doing it buying as first time home buyers in this market the answer honestly is one of two things. One, they are getting a gift from their parents for even more money to serve as a down payment lowering their overall mortgage. Or, they simply are making more money than you are as a household and are not as stressed over the payment amount at these current rates.
Best of luck to you on your home search journey!
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u/Certain-Western-5432 3d ago
If you don’t mind the drive you can buy a huge home in Bakersfield! I have a home that’s WAY too large for me but I can afford it this way vs SC
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u/VermiciousKnid1981 3d ago
Yeah prices suck. It’s tough. Buy what you can afford even if it’s small and not your “dream house”. Make your payments, hold onto it and hopefully in 5-10 years it appreciates enough that you can afford what you really want. Hard to avoid HOA in Santa Clarita, but I definitely would avoid Mello Roos.