[quote=Ready411]By missing the boat, I mean in the price range and market that I am looking at, I do not believe I will be buying my dream house. But if a decent deal comes along, I will probably be second guessing myself and wondering if it really is the right deal. For those with more experience, has a decent neighborhood in central San Diego always been a tough market for 1st time buyers? My gut says no, but I have no point of reference.[/quote]

Ready411, Central SD has ALWAYS been tough in certain zips and neighborhoods for FT buyers. The way FT buyers usually were able to purchase a property < 5 mi. from dtn. SD was to buy a "fixer" or a "cosmetic fixer." Urban SD's SFR housing stock, particularly south of I-8 is 60-90 yrs. old (with very small pockets of 1970's dev), unless a lot was previously razed and rebuilt. In the zips where properties with redwood/cedar built ins, plaster walls, cove cielings, leaded glass, crown moulding, pier & post foundation, etc. are abundant, those properties are the "real deal" in that they cannot be duplicated easily or cheaply by builders today. There is a LOT OF COMPETITION for these properties in ANY condition because they are a finite commodity. I you will accept a fixer WWII box or 1950 ranch with outdated kitchens/baths and poss. 1 to 1-1/2 car gar, I think you will be able to find a well-located property with some "sweat equity" built in for bet. $330K and $400K if are patient and "hang tough." You might want to ask active realtor Piggs, but I believe your terms could get your offer accepted over other potentially equal offers, that is, offer to put 20% down and borrow 80% conv. and NOT ask for any closing-cost assistance or other concessions beyond the work/tenting that is necessary for termite clearance. When I was active in RE, the "FHA" program was not commonly used in CA so I do not know how an FHA offer is typically perceived by sellers today. I know that the program is now in use in CA because the FHA cap has been raised in recent years.