How Much Down Payment Do You Need to Buy a Home in San Diego (2026)?
By Dave Holland, NMLS #2273319 · Keypath Mortgage, Clairemont San Diego
The minimum down payment to buy a home in San Diego in 2026 is $0 with a VA loan, 3% with a conventional loan, or 3.5% with an FHA loan. On a typical $900,000 San Diego home, that ranges from $0 to $31,500. Twenty percent down ($180,000) avoids PMI but is not required.
Down Payment by Loan Type (San Diego 2026)
- VA loan: $0 down. No PMI. Funding fee instead (1.25-3.3%, can be financed or waived for 10%+ disability).
- Conventional 3% down: $27,000 on $900K home. PMI required until 78% LTV (removable).
- FHA 3.5%: $31,500 on $900K. MIP often for life of loan in most cases.
- Conventional 20%: $180,000. No PMI.
VA Loans: $0 Down for Veterans
San Diego is the largest military market on the West Coast. Veterans, active-duty, qualifying Guard/Reservists, and surviving spouses can buy with $0 down. No PMI, no loan limit with full entitlement, funding fee can be financed or waived for veterans with 10%+ VA disability rating.
FHA: First-Time Buyer Friendly
FHA 3.5% down is a popular path for first-time San Diego buyers — especially in Linda Vista, Clairemont, and Mira Mesa where home prices align with FHA limits. Trade-off: MIP for the life of the loan in most cases. Refinance into conventional once you have 20% equity to remove MIP.
Down Payment Assistance in San Diego
- CalHFA MyHome — deferred junior loan up to 3% for down/closing.
- CalHFA Forgivable Equity Builder — partial forgiveness over time.
- San Diego Housing Commission — local first-time buyer programs.
- FHA + gift funds — 100% of the down payment can come from a family gift.
Get a Free Pre-Approval
Call (619) 900-6614 or contact us. NMLS #2273319. Equal Housing Lender.
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