FHA vs. VA vs. Conventional Loans in San Diego (2026 Comparison)
By Dave Holland, NMLS #2273319 · Keypath Mortgage, Clairemont San Diego
VA, FHA, and conventional are the three main paths to financing a home in San Diego. The right one depends on your credit, down payment, military service, time horizon, and loan amount. This guide compares them with current 2026 San Diego figures.
Quick Comparison
- VA: No min credit (lenders 580-620), $0 down, no PMI, no limit with full entitlement. Best for veterans.
- FHA: 580 min credit with 3.5% down, MIP often for life of loan. Best for lower credit / smaller down.
- Conventional: 620 min credit, 3-20% down, PMI removable at 78% LTV. Best for strong credit + 5%+ down.
VA Loans: First Choice for Eligible Veterans
If you served, VA is almost always the best option. $0 down. No PMI. No loan limit with full entitlement. Funding fee waived for 10%+ disability rating. San Diego military communities — Camp Pendleton, MCAS Miramar, Naval Base San Diego — make VA loans extremely common here.
FHA: First-Time Buyer Path
FHA is the path of least resistance for buyers with 580-680 credit or limited down payment savings. The 3.5% minimum is achievable for most San Diego buyers. Catch: MIP for the life of the loan in most cases. Refinance to conventional once you reach 20% equity.
Conventional: Best Long-Term Cost
If your credit is 700+ and you have 5%+ down, conventional usually beats FHA on lifetime cost. PMI is removable at 78% LTV. Above $1,104,000 in San Diego County, you cross into jumbo territory.
$850K Home, 5% Down (Illustrative)
- FHA 3.5%: Down $29,750. Loan ~$820K + 1.75% upfront MIP financed. Approx P&I $5,290 + $465 MI = ~$5,755/mo.
- Conventional 5%: Down $42,500. Loan $807,500. Approx P&I $5,107 + $330 PMI = ~$5,437/mo.
- VA 0% (if eligible): Down $0. Loan $850K + ~2.15% funding fee financed. Approx P&I $5,495 + $0 MI = ~$5,495/mo.
Illustrative only. Actual rates and MI vary daily and by credit score.
Get a Side-by-Side Quote
We will run all three programs side by side with your actual credit, down payment, and target home price. Call (619) 900-6614 or contact us. NMLS #2273319.
Prefer to watch? The FHA, VA and conventional comparison videos are grouped by loan type in the San Diego mortgage video library.