San Jose real estate sits at the center of Silicon Valley, where tech-sector salaries have pushed median home prices above $1.3 million. Single-family homes in established neighborhoods like Willow Glen, Rose Garden, and Almaden Valley are the most sought-after property type, regularly receiving multiple offers above asking price. Condos and townhouses offer a lower entry point, with well-located units in Santana Row and downtown starting around $700,000.
Financing in San Jose: jumbo loans and down payment expectations
Nearly all San Jose home purchases require jumbo financing, as prices far exceed conforming loan limits. Lenders typically require 20% down on jumbo loans, though some portfolio lenders offer 10% down products for well-qualified borrowers. Tech stock RSUs and bonuses are commonly used for down payments, and buyers should consult a lender experienced with non-traditional income documentation. VA loans are available for eligible veterans at any price point where lenders will approve the amount.
Property taxes in Santa Clara County run approximately 1.15-1.25% of assessed value annually. HOA fees in condo developments average $400-$600 per month. For investors, cap rates in San Jose are among the lowest in the nation at 2.5-3.5%, but strong long-term appreciation and a deep rental market with very low vacancy rates make the market a compelling hold for those with the capital to enter.
