The financing guide
How much do you need to be a well-qualified buyer in San Diego?
San Diego County's median home price sat around $965,000 in August 2026. The buyers who win here aren't necessarily the ones with the most money; they're the ones who show up well-qualified. This page explains what that means and what it takes: down payment, credit, loan type, and the cash and paperwork that turn an offer into a win.
Data note: the figures on this page are approximate, move constantly, and reflect October 2026. Your lender runs the real numbers for your situation.
Section 01 · The down payment question
20% down on a $900K home is $180K. But 20% isn't a rule, it's a choice.
That $180K number intimidates a lot of people, and it shouldn't stop you from shopping. The right down payment depends on your savings, your income, and how competitive the home you want actually is. Here are the three real options, and when each one makes sense.
20%
down: the strongest play
No PMI, a lower monthly payment, and a clean financing story that listing agents learn to trust. In a multiple-offer situation, 20% down is the option that wins. It just asks for the most cash up front.
10%
down: the balance pick
Doable on a conventional loan and keeps meaningful cash reserves after closing for furniture, repairs, and life. You pay PMI until you build 20% equity, and on a well-qualified profile the payment impact is modest.
3% - 5%
down: the entry point
Conventional loans allow 3% down and FHA goes to 3.5% with a 580 minimum score. Great when savings are thin, but in a competitive market a low down payment can lose to offers with more cash and fewer financing strings. Sellers notice the difference.
The San Diego math
What a winning profile looks like at $900K
At $900K with 20% down, lenders typically want to see annual income around $235K to $240K, credit scores solidly in the 700s, and cash still left over after closing. That whole picture, not any single number, is what wins competitive situations.
$235K+
income per year, typically $235K to $240K
700s
credit score, solidly in the 700s
Cash left
reserves after closing, not an empty account
Section 02 · Credit score
Credit score matters more than you think
At this price point, the difference between a 680 and a 760 is real money. Better scores unlock better rates, and on a $720K loan even a quarter point can mean tens of thousands of dollars over the life of the mortgage.
If your score is below 740, spend the three to six months before you shop improving it: pay down balances, check your reports for errors, and don't open new credit. It almost always pays for itself, and I can connect you with a lender who will tell you exactly what to work on.
The quarter-point math
Loan balance
typical mortgage at 20% down
$720K
Rate difference
a 760 versus a 680 can be this big
0.25%+
Cost over the loan
what a quarter point buys you, in practice
Tens of thousands
Section 03 · Loan types
The loan type breakdown
The loan program changes the whole math, not just the down payment. Here's how the five main options stack up for a San Diego buyer in 2026.
01
Conventional
The most common choice: solid credit plus 5% to 20% down. San Diego's 2026 conforming loan limit is around $1.1M, so most median-priced homes qualify.
02
FHA
A 3.5% down option with a 580 minimum score, and San Diego County's 2026 limits cover the median price. The catch is mortgage insurance for the life of the loan. Less efficient for well-qualified buyers with options, but a legitimate path.
03
VA
The best program if you served: zero down, no PMI, and veterans can finance well above conforming limits with full entitlement. Powerful in competitive markets.
04
Jumbo
Anything above roughly $1.1M. Typically 10% to 20% down, with more scrutiny on income and reserves, and well-documented assets expected.
05
USDA
Eligible rural areas only, which is a small slice of San Diego County. Zero down with income caps, but it rarely applies at the median coastal price.
Section 04 · Down payment assistance
Real programs, honest expectations
California has real assistance programs, and some of them help well-qualified buyers put less of their own money down.
CalHFA MyHome
Up to 3.5% of the purchase price toward your down payment or closing costs, structured as a deferred-payment loan.
CalHFA ZIP
A 2% to 3% zero-interest second loan, often used to cover the down payment on top of a first mortgage.
Dream For All
Up to 20% down in exchange for a share of future appreciation, with the assistance capped at $150K.
The honest version
Most of these programs are for first-time buyers, they are repayable loans rather than free money, and income limits apply. For a well-qualified repeat buyer, they're rarely the move.
For a strong first-time buyer with thin savings, though, they can be the bridge that gets you in sooner. I'll help you read the fine print before you choose, so the assistance helps rather than complicates your offer.
Section 05 · The bottom line
Well-qualified is the competitive advantage
Being well-qualified in San Diego is the competitive advantage: strong credit, a realistic down payment, verified income, cash reserves after closing, and a pre-approval from a local lender who knows the market.
- Strong credit
- A realistic down payment
- Verified income
- Cash reserves after closing
- Pre-approval from a local lender
Sellers can tell the difference. In a multiple-offer situation, it's often the difference between winning and losing, regardless of how many zeros are on the check.
Where you stand, in real numbers
Let's see exactly where you stand
Whether you're six months out or ready to write an offer this week, reach out and we'll talk it through: where you stand today, a lender I trust, and an offer strategy built around real numbers. No pressure, no obligation.
Ready to start shopping? Read the full buying guideData note: figures on this page are approximate, move constantly, and reflect October 2026. Nothing here is a loan approval; your lender runs the numbers for your exact situation.