"I have $200k equity in my current home (NC) and if I move to the San Jose area that would still require me to put in another $100-200k of savings to "compete" for a mediocre 1500-2000sqft place near work."
Do you mean you'd need that $400k down to "compete"?
You would have no problem buying a $1MM home on credit with your 20% down. That would buy you a decent place in San Jose. You could also buy the same home with 10% down, though that will require PMI on your mortgage. In either case, I don't believe you would have too much trouble from cash buyers. Yes, cash means a shorter escrow period. But if you offer more than the cash buyer, most sellers will take the higher bid. Your offer would waive your loan contingency (by getting your financing locked-down in a commitment letter).
No PMI on jumbo loans. They just require cash reserves. (which, yes, is more money on top of what you have to put down, but there's no requirement that you not spend it once you close). So take that $200k, put down 100, and keep the rest in the bank.
Do you mean you'd need that $400k down to "compete"?
You would have no problem buying a $1MM home on credit with your 20% down. That would buy you a decent place in San Jose. You could also buy the same home with 10% down, though that will require PMI on your mortgage. In either case, I don't believe you would have too much trouble from cash buyers. Yes, cash means a shorter escrow period. But if you offer more than the cash buyer, most sellers will take the higher bid. Your offer would waive your loan contingency (by getting your financing locked-down in a commitment letter).