Why Bay Area Buyers Are Looking at the Central Valley
October 30, 2026
Quick Summary
A Bay Area first-time buyer could buy their rental, but it would cost over $1 million. With FHA and 3.5% down, that payment came to about $7,500 a month in Alisha's example. A similar Central Valley home near $400,000 came to about $3,000 a month. That gap is why many Bay Area buyers are looking east.
Related reading: Best schools in Modesto.
Video Transcript
I just got off the phone with a potential new client looking to buy their first home. They live in the Bay Area and are thinking about moving to the Central Valley.
Their landlord is willing to sell them the house they rent, which is great, except the price would likely be over $1 million. With an FHA loan and 3.5% down, the payment in my example came to just over $7,500 a month.
In the Central Valley, they may get a similar home for around $400,000. With the same 3.5% down, the payment came to about $3,000 a month.
That's why we're seeing a lot of people move from the Bay Area to the Central Valley. Homes are more affordable, and people can start building their own equity. If you have questions, I'm happy to help.
Payment figures are examples from the time of filming. They include assumptions and will vary with price, rate, taxes, insurance, and mortgage insurance. Not an offer or a rate quote.
Next Steps
Take a look at our FHA loans and jumbo loans, reach out to our team, or connect with me directly. We help buyers all across California.
Alisha Silva, Mortgage Loan Originator, NMLS #1683313. Lend Mortgage Solutions (50-50 Mortgage Inc.), NMLS #2289265. Equal Housing Opportunity. This video is for general education only and is not a commitment to lend.
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