How Much Down Payment Do I Need to Buy a Home in San Diego?

Down Payment Requirements in San Diego

A down payment is the portion of the home's purchase price you pay upfront from your own funds — the rest is financed through a mortgage. In San Diego, down payment requirements vary significantly by loan type, ranging from zero down for VA loans to 20 percent or more for jumbo loans.

Minimum Down Payment by Loan Type

• VA loan: 0 percent down for eligible military buyers
• USDA loan: 0 percent down for qualifying rural San Diego County properties
• FHA loan: 3.5 percent down with 580+ credit score
• Conventional first-time buyer programs: 3 to 5 percent down
• Standard conventional loan: 5 to 20 percent
• Jumbo loan: Typically 10 to 20 percent minimum

The 20 Percent Myth

You do not need 20 percent down to buy in San Diego. That threshold simply eliminates private mortgage insurance on conventional loans. Many San Diego buyers find that waiting to save 20 percent means chasing a moving target as prices continue to appreciate. The math often favors buying sooner with less down.

Down Payment Assistance Programs

CalHFA's MyHome Assistance Program provides a deferred-payment junior loan covering down payment. The San Diego Housing Commission offers programs for city residents. Local employer assistance programs exist for teachers, healthcare workers, and government employees. Rieder Homes Group connects buyers with lenders specializing in these programs.

Gift Funds for Down Payment

Many loan programs allow down payment funds to come from gifts from family members, subject to lender documentation requirements about the relationship between donor and borrower. If you expect a gift to help with your down payment, tell your lender upfront so they can guide the documentation process correctly.

Related Reading on RiederHomes.com:

→ Blog #1: How Much Can I Afford?

→ Blog #2: Mortgage Pre-Approval

→ Blog #5: Down Payment Assistance San Diego

→ Blog #13: Private Mortgage Insurance

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556