First time buyer guide

Buying Your First Home on the Peninsula

A plain English plan for first time buyers in San Mateo County: how long it takes, which neighborhoods are most attainable, how gift money and RSUs work, and how to turn an inherited home into your own purchase.

Your timeline, step by step

Most first time buyers here take about 3 to 6 months from first conversation to keys. The search moves fast once you are ready: single family homes in Burlingame, San Mateo and Redwood City sold in a median of 10 to 12 days over the last year.

  1. 11 to 3 months before

    Get ready

    Check your credit, pick a monthly payment you are comfortable with, line up gift money and sell any RSUs you plan to use.

  2. 2About 1 to 2 weeks

    Preapproval

    A lender reviews your income, assets and credit and tells you what you can borrow. You need this letter to make an offer.

  3. 3Often 1 to 3 months

    Tour and offer

    We tour, compare recent sales and write offers. Good homes can go in under two weeks, so we move quickly.

  4. 4Usually 21 to 30 days

    In escrow

    Your deposit goes in within a few days. Inspections, appraisal and loan approval happen here, usually within 17 days.

  5. 5Closing day

    Keys

    You sign, the loan funds, the deed records and the home is yours.

Where a first budget goes furthest

Every neighborhood is shaded by its own median sold price over the last 12 months. Lighter means more attainable. Switch to condos and townhomes, where many first purchases happen. Tap a neighborhood for its prices.

Most attainable for houses

    Most attainable for condos and townhomes

      Median sold price, November 9, 2025 to November 8, 2026, from MLSListings closed sales. Lists include neighborhoods with at least 5 sales of that type.

      Down payment and loan basics

      $1,249,1252026 conforming and FHA loan limit in San Mateo County
      3.5% to 5%Minimum down: 3.5% with FHA, 3% to 5% conventional (5% once the loan is above $832,750)
      1.07% to 1.18%Yearly property tax rate in most of San Mateo County, plus school parcel taxes

      Above the limit

      Loans above $1,249,125 are jumbo loans. Many jumbo lenders want 10% to 20% down and more savings left over after closing.

      Under 20% down

      On a conventional loan, mortgage insurance can usually be removed at about 20% equity. FHA loans with under 10% down keep it for the life of the loan unless you refinance.

      Cash to close

      Plan for your down payment plus about 1.5% of the price in loan, escrow and title costs. See your numbers in the mortgage calculator, and compare city taxes in Compare Cities.

      Gift money from parents or grandparents

      Family help is common here, and lenders are used to it. What matters is a clean paper trail.

      What the lender needs

      • A signed gift letter saying the money does not need to be paid back
      • Proof it left the giver's account and arrived in yours or in escrow
      • The giver's name, relationship and amount

      How much can be a gift

      On many loans for a home you will live in, the entire down payment can be a gift. Some programs and jumbo lenders ask you to put in some of your own money too. Your lender confirms the rule for your loan.

      Taxes for the giver

      In 2026 each person can give $19,000 to each recipient with no gift tax return. Two parents giving to a married couple can give $76,000. Bigger gifts just need a gift tax return, and tax is only owed after a $15 million lifetime amount.

      Timing tip: move gift money early, ideally before you apply, or send it straight to escrow. A large deposit that shows up mid loan needs extra paperwork. A loan from family instead of a gift is possible, but the lender counts the payment as debt.

      Using RSUs and company stock

      Vested shares count, unvested do not

      Only vested shares you can sell are assets. Unvested RSUs are not money in the bank yet.

      Sell before you shop

      Selling the shares you plan to use and moving the cash to your bank a couple of months ahead protects you from a market drop mid escrow and keeps the paperwork simple. Watch your company's trading windows.

      RSUs as income

      Many lenders can count RSU income when you have a history of vesting, often about two years, and shares keep vesting. Each lender calculates it a little differently, so ask early.

      Plan for taxes

      RSUs are taxed as income when they vest. Employers often withhold 22% for federal tax, which can be less than you owe. Set money aside for April before counting it as down payment.

      Inherited a home? Sell it and buy your own

      Many first time buyers on the Peninsula are also heirs. Here is how a family home becomes your first purchase.

      1. 1First weeks

        Find out who can sign

        With a living trust, the successor trustee can usually sell without court. Without one, probate comes first and often takes many months.

      2. 2Before you list

        Keep or sell?

        Under Prop 19, a child who moves in as their main home can keep the parent's property tax base, up to about $1 million in extra value. Renting it out or selling ends that.

      3. 32 to 6 weeks

        Prepare and list

        Clean out, fix only what pays off, and sell as is where it makes sense. A date of death appraisal sets your tax basis.

      4. 4About 30 days

        Close the sale

        Thanks to the step up in basis, capital gains tax is often small when the home sells soon after inheriting it.

      5. 5Right after

        Buy your home

        The closing statement documents your proceeds for the lender, so the money can go straight to your down payment.

      Lining up both sides

      Get preapproved while the inherited home is in escrow, then shop as soon as it closes. If the timing has to overlap, we can write your offer contingent on the sale, or negotiate a rent back.

      Sharing with siblings

      If one heir wants to keep the home, the others can be bought out with a new loan. We start with a clear value so everyone agrees on the number.

      Still a first time buyer?

      Most programs count you as a first time buyer if you have not owned the home you lived in for the past three years. If you lived in the inherited home, check with your lender.

      Read the full inherited home guide

      Book your first time buyer consultation

      Pick a time for a 30 minute call. We will map out your budget, down payment, loan options and the cities that fit. No pressure, no obligation.

      Help for first time buyers

      CalHFA MyHome

      A deferred loan for part of your down payment or closing costs, used with a CalHFA first mortgage. Details

      California Dream For All

      Up to 20% of the price, capped at $150,000, repaid with a share of future appreciation. For first generation buyers, awarded by drawing; the 2026 round has closed, so watch for the next one. Details

      HEART of San Mateo County

      Free homebuyer education and webinars. Its down payment loan ended in January 2026. Details

      County employees

      San Mateo County and Housing Authority employees can apply for a $100,000 down payment loan through a quarterly drawing. Details

      Programs have income limits, price limits and rules that change. Your lender confirms what you qualify for.

      First time buyer questions

      How much do I need saved to buy a first home here?

      On a $1 million condo with 10% down, plan for about $100,000 down plus about $15,000 in closing costs, and some savings left over. With 5% down, the down payment is about $50,000.

      Can my parents give me the whole down payment?

      On many loans for a home you will live in, yes. You need a gift letter and a paper trail showing the money moving. Some programs and jumbo loans require some of your own funds.

      Should I sell my RSUs before buying?

      If you plan to use them for the down payment, selling a couple of months before you apply keeps the paperwork simple and removes market risk. Talk with your CPA about taxes first.

      Can I use money from an inherited home to buy my own?

      Yes. Once the sale closes, the closing statement documents the proceeds, and they can go toward your down payment.

      Which Peninsula neighborhoods are most affordable for first time buyers?

      Over the last 12 months, the lowest house medians were in San Bruno (Belle Air and San Bruno Park), East Palo Alto, Daly City (Original Daly City, Broadmoor and Westlake) and Pacifica (Rockaway Beach and Sharp Park), from about $820K to $1.25M. For condos and townhomes, Shelter Creek and Peninsula Place in San Bruno, Crown Colony in Daly City, and South Shoreview and Bowie Estate in San Mateo sold for $550K or less at the median.

      Sources: MLSListings closed sales of single family homes, condominiums and townhouses, November 9, 2025 to November 8, 2026, placed in neighborhoods by location and refreshed weekly. Neighborhood borders: MLSListings areas and city neighborhood maps. Loan limits: FHFA and HUD. Down payment minimums: Fannie Mae eligibility matrix. Property tax rates: San Mateo County Controller tax rate book, 2025 to 2026. Gift tax: IRS. Prop 19: California Board of Equalization. Programs: CalHFA, San Mateo County, HEART. This page is general information, not tax, legal or lending advice. Joseph Suarez, Coldwell Banker Burlingame, DRE 02085594.

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