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

by Trevor Landress

You do not need 20% down to buy a home in San Diego. Many loan programs allow as little as 3% to 3.5% down, and eligible veterans can use a VA loan with no down payment. A 20% down payment mostly helps you avoid mortgage insurance and lowers your monthly payment.

I'm Trevor Landress, a San Diego REALTOR® with Coldwell Banker West and part of the Campbell Group, a three-generation real estate team. This guide breaks down what a San Diego down payment really costs and what your options are.

The short answer

Many programs allow 3% to 3.5% down. VA loans can allow 0% for eligible buyers.
On the July 2026 San Diego County median price of $1,099,000, 3% down is $32,970 and 20% down is $219,800.
Below 20% down on a conventional loan, you usually pay private mortgage insurance (PMI).
Closing costs are a separate bill on top of your down payment.
A bigger down payment lowers your monthly payment. It does not lower your price.

What is the median price in San Diego right now?

The California Association of REALTORS® (C.A.R.) reported that the median price of an existing single-family home in San Diego County was $1,099,000 in July 2026. That was up 1.3% from June and up 5.7% from July 2025, according to KPBS, which reported the data on August 17, 2026.

Your down payment is a percentage of the price, so the price you choose matters more than any single rule. I use the July median below only as an example.

What does each down payment cost?

Here is the cash needed at each level on a $1,099,000 home, plus the loan amount left over. The last column shows principal and interest only, using the 7.40% average 30-year rate Freddie Mac reported on October 8, 2026. These are my own calculations. They leave out taxes, insurance and mortgage insurance.

Down payment	Cash needed	Loan amount	Principal and interest at 7.40%
3%	$32,970	$1,066,030	$7,381 a month
3.5%	$38,465	$1,060,535	$7,343 a month
5%	$54,950	$1,044,050	$7,229 a month
10%	$109,900	$989,100	$6,848 a month
20%	$219,800	$879,200	$6,087 a month

Notice the pattern. Moving from 3% down to 20% down takes about $187,000 more cash. It lowers principal and interest by about $1,294 a month, from $7,381 to $6,087. That is my math, and your rate will differ.

Which loans allow a small down payment?

FHA loans: generally 3.5% down for buyers who qualify.
Conventional low-down-payment loans, such as Fannie Mae HomeReady and Freddie Mac Home Possible: generally 3% down for eligible buyers. Income limits apply. For example, Freddie Mac limits Home Possible qualifying income to 80% of area median income.
VA loans: often 0% down for eligible veterans and service members. The VA says no down payment is needed as long as the sales price is not higher than the appraised value. Loan limits apply.
Standard conventional loans: commonly 5% to 20% down.

Each program has its own credit, income, property and loan size rules. A lender can tell you which ones fit your file. Do not assume a rule you read online applies to you.

What is PMI and when does it apply?

PMI is insurance that protects the lender, not you. On a conventional loan with less than 20% down, lenders usually require it, and it adds to your monthly payment. With 20% down, you usually skip it.

This is why some buyers stretch for 20%. It is also why others decide a lower down payment and PMI is worth it to buy sooner. Ask your lender to price both so you can compare real numbers.

Is there help with the down payment in California?

The California Housing Finance Agency (CalHFA) runs the MyHome Assistance Program. It offers a deferred-payment junior loan to help qualified first-time buyers with down payment and closing costs. Income limits, price limits and terms change, so check calhfa.ca.gov or ask a lender who works with CalHFA.

If you served in the military, ask about VA loan benefits first. Zero down can change your whole plan.

Why does saving take so long for many buyers?

The National Association of REALTORS® reported that first-time buyers were a record-low 21% of buyers in its latest annual profile, and the median first-time buyer age hit a record 40. When prices are high, building the down payment and the closing costs takes time.

C.A.R. also reported that only 17% of San Diego County households could afford the median-priced home in the second quarter of 2026. Our post on how much income you need covers that in detail.

What if you cannot reach 20% down?

Look at a lower price range, or a condo or townhome, so the same percentage costs less cash.
Ask a lender about 3% and 3.5% programs and what they require.
Check CalHFA and VA benefits before you decide.
Keep cash in reserve after closing. A thin cushion is a real risk.
Pay down credit card and car debt first. Lower monthly debts can help you qualify.

This is not a guarantee

Prices, rates and loan rules change, and every buyer is different. The numbers in this post are averages, benchmarks or my own examples. They are not a quote, a prediction or a guarantee. Talk to a lender about your own situation.

My advice for San Diego buyers

Pick the monthly payment you can carry first, then work backward to the price and down payment.
Ask a lender to show two or three down payment levels side by side.
Plan for closing costs and moving costs on top of the down payment.
Do not drain your savings to hit a percentage. Cash after closing matters.
Get preapproved before you tour homes so you shop with real numbers.

Call or text me at (619) 402-4614 or send me a message.

Call or text (619) 402-4614 Contact Trevor Landress

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Frequently asked questions

What is the minimum down payment to buy a house in San Diego?

It depends on the loan. FHA loans generally allow 3.5% down, some conventional programs allow 3%, and VA loans can allow 0% for eligible buyers. Lender rules and loan limits still apply.

Do I need 20% down to buy in San Diego?

No. A 20% down payment helps you avoid private mortgage insurance on a conventional loan, but many buyers put down less and pay PMI instead.

How much is 5% down on a $1,099,000 home?

Five percent of $1,099,000 is $54,950. C.A.R. reported $1,099,000 as the July 2026 San Diego County median price for existing single-family homes. Closing costs are extra.

Is there down payment help for California first-time buyers?

Yes. CalHFA offers the MyHome Assistance Program for qualified first-time buyers. Eligibility and terms change, so confirm them at calhfa.ca.gov.

Does a larger down payment lower my monthly payment?

Yes. A larger down payment lowers your loan amount and usually your monthly payment. It can also remove mortgage insurance at 20% down on a conventional loan.

About the author

Trevor Landress is a San Diego REALTOR® with Coldwell Banker West (DRE# 02126901). He was born and raised in San Diego and has been licensed since 2021. Trevor helps homeowners sell, guides first-time buyers through the home buying process and assists investors with their next acquisition. His work includes negotiating offers, analyzing market trends, building pricing strategies and running marketing campaigns for his listings.

He serves clients across San Diego County, from coastal communities like La Jolla, Del Mar and Carlsbad to neighborhoods inland. Trevor is part of the Campbell Group, a three-generation real estate team, and he and the Campbell Group consistently rank as a top producing team at Coldwell Banker West each month. He writes these guides to help San Diego buyers and sellers navigate an ever-changing market. To talk through your plans, call or text (619) 402-4614 or contact Trevor Landress.

Sources

This article is general information about the San Diego housing market and home buying. It is not financial, tax or legal advice. Rates, programs and rules change, so confirm details with your lender, a tax professional or an attorney before you act.