A San Mateo couple earning $240,000 and banking a full quarter of it is saving more than most people ever manage. Even so, reaching a 20% down payment on a median home would take them 6 years and 8 months. That’s assuming nothing goes sideways along the way.

I run this math with clients before they make an offer, and it almost always changes how they approach the search.

Cutting comes before saving, and most people get that order wrong. They open an account, automate a transfer, and treat that as a plan, but nothing in their budget actually changed, so within a few months the plan quietly dies. A real plan starts with three months of statements and an honest look at the big four: housing, transportation, food, and debt. Rent is usually the giant on the Peninsula. Paying $4,500 for a one-bedroom in Burlingame or downtown San Mateo? A smaller place a bit further out, or a roommate, can free up serious money. A second car payment or a steady dining-out habit can quietly drain a thousand a month, too.

Of everything you can cut, debt is the one to hit hardest, because it pays off twice. The obvious win is that money not going to interest goes to your down payment instead. The bigger win shows up at the loan application. Lenders weigh your debt-to-income ratio heavily and generally want it under 43%, with lower being better.

Pay down a credit card and three things move at once: cash frees up, your DTI drops, and your borrower profile strengthens, which can mean a larger loan or a better rate. In a market where most loans are jumbo, that scrutiny is even tighter

Twenty percent down is still the target, and the reasons hold up. It lets you skip private mortgage insurance, lowers your monthly payment since you’re financing less, and makes your offer more attractive to a seller. You can absolutely buy with less, conventional loans go down to 3 to 5%, and a VA loan can be zero down with no insurance if you or your spouse served. But under 20% on a conventional loan triggers PMI, and on a Peninsula-sized loan that runs anywhere from a few hundred dollars to over $1,000 a month, all of it building you no equity.

FHA’s version, MIP, often sticks for the life of the loan when you put down less than 10%. And since our median home sits well past conforming limits, most buyers land in jumbo territory, where lenders usually want at least 10% down and often the full 20. Those low-down-payment options you read about online just don’t stretch as far here. They’re tools, not shortcuts.

The math only means something when you run your own numbers. Individual salaries in San Mateo County average around $120,000, so a dual-income household lands near $240,000. Against a $2 million median home, 20% is $400,000. Bank a hard 25% of gross income; that’s $60,000 a year, and it takes 6 years and 8 months to get there, with zero setbacks.

That’s just the down payment. It leaves out closing costs, another $40,000 to $60,000 on a $2 million purchase, plus reserves, the move itself, and furnishing a place that’s likely bigger than your current one.

Every one of those inputs bends the timeline. A single earner or a lower income stretches it; family help or stock equity pulls it in; a townhome or condo instead of a single-family home lowers the entry point and shortens the wait. Your plan will look different from anyone else’s, but you need one: cut before you save, pay down the debt first, aim for 20%, know the true cost of putting down less, and build it on your real numbers.

If you want a hand running those figures for your own situation, call or text me at 1-650-274-3598, email me at Burt@RealEstateBurt.com, or visit realestateburt.com. Let’s build the math for you.