It was in San Diego after the market crash.

I am worried what if the housing market crashes soon.

As @Joseph Cacciapaglia said, there was no money after the 2008 crash and I’m not even talking about the banks.

At 3.75 amortized over 25, thats $1,275 payment that I'll end up getting stuck with because of the crash. 

Banks will have a smaller pool of qualified buyers due to job loss.With people out of work and the market having crashed in the last 6 weeks or so, cash buyers will not have the cash they once had. 

Many of them will crash and burn.

Hindsight is 20/20 except this time we have past experience to tell us what the future is likely to hold since we saw stimulus packages in last housing crash.

We've had major problems before and in recent history (stock market crashes, housing collapse, etc).

After the crash, it didn’t drop to $200k, it dropped back to that “new normal”, that new price that had adjusted higher to be in line with surrounding markets. 

Those folks are in commercial loans which if you read the news, are on the verge of crashing.