One of the major affects of the great appreciation of San Francisco and the Bay Area, has been that it has locked out many potential buyers from being able to afford housing.  The market has developed, and many other options have come out to help people get started, because let's face it, starting is the most difficult thing. 

I wrote a blog about BMR (Below Market Rate) housing in San Francisco, about some of the ways you can get started.  It was titled BMR- Below Market Rate Housing.  This is one program.

Another that has come about a lot in San Francisco are TIC's or Tenancy in Common housing.  There are many differences between TIC housing and conventional housing or condominiums, and a great place to learn about there differences is at Andy Sirkin 's website.  It is a great resource.

I am not writing to plug Andy Sirkin, but I have learned a little there, but mainly to encourage people to consider all of their options.  One of the main reasons TIC's have gotten a lot of press is because of their price point.  They are often times priced much lower than conventional housing.  The draw back is the availability of lending on these properties.  There are lenders, don't get me wrong, but you can find conventional housing that might make just as much sense, and in the long run, offer you a better return on your investment.  If you could borrower more money, at a much better rate, with less money down, you may be better off.  There are many lenders out there offering special pricing to Low Income families, you need to find the right person that can give it to you straight, without all of the nonsense.

THE POINT- analyze all of your options.  First off, what can you afford to pay per month.  Secondly, do you plan on putting any money down?  These questions, are the heart of what you should be looking at in any market, but most importantly in the competitive San Francisco Home Loan  Market. 

If you plan on paying $1500 per month, the reality is you are probably better off renting or looking in less expensive areas.  The key is to find the person you trust, and doesn't just tell you what you want to hear.  Owning a home is difficult, and getting a plan together for affording that home is key.