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What are the best mortgage options for buying a home in San Diego?
The best mortgage options in San Diego include conventional loans, FHA loans, VA loans, jumbo loans, and local assistance programs. The right one for you depends on your credit, income, down payment, and long-term plans.

Why Mortgage Choice Matters

Choosing the right mortgage impacts everything from your monthly payment to how much house you can afford. In San Diego, where home prices are among the highest in the country, the right loan strategy can make or break your buying power.

At Schwarz Real Estate Group, we guide buyers through each financing option, helping you make an informed decision based on your unique financial profile.

Top Mortgage Options in San Diego

1. Conventional Loans

  • Ideal for buyers with good to excellent credit (typically 680+) 
  • Down payments as low as 3% for first-time buyers 
  • No upfront mortgage insurance 
  • Flexible loan term options (15, 20, or 30 years)

Best for: Buyers with strong credit and steady income looking for flexibility.

2. FHA Loans

  • Government-backed loan 
  • Minimum credit score as low as 580 
  • Down payments starting at 3.5% 
  • Allows higher debt-to-income (DTI) ratios

Best for: First-time buyers or buyers with lower credit scores and smaller down payments.

3. VA Loans (for Veterans and Active-Duty Service Members)

  • No down payment required 
  • No private mortgage insurance (PMI) 
  • Competitive interest rates 
  • Backed by the U.S. Department of Veterans Affairs

Best for: Eligible military personnel and veterans buying in San Diego.

4. Jumbo Loans

  • For home purchases exceeding conforming loan limits ($1,006,250 for most of San Diego in 2025) 
  • Requires strong credit and low debt 
  • Typically 10–20% down payment 
  • Competitive rates for qualified buyers

Best for: Buyers purchasing luxury or high-value homes.

5. Adjustable-Rate Mortgages (ARMs)

  • Offers a lower initial rate for a fixed period (e.g., 5, 7, or 10 years) 
  • Rate adjusts based on the market after the fixed period ends 
  • Lower initial payments compared to fixed-rate loans

Best for: Buyers who plan to sell or refinance within a few years.

6. CalHFA Programs

  • Down payment assistance and competitive rates for eligible first-time buyers 
  • Includes the MyHome Assistance Program and the Dream For All Shared Appreciation Loan

Best for: Income-qualified buyers who need help with upfront costs.

How to Choose the Right Loan

Not sure which loan is best for your situation? Consider these questions:

  • How much do you have saved for a down payment? 
  • What is your credit score? 
  • How long do you plan to live in the home? 
  • Are you eligible for VA or local assistance programs? 
  • Is your income consistent and verifiable?

A mortgage broker or lender can walk you through pre-approval and help determine the best fit. The team at Schwarz Real Estate Group can connect you with trusted lending professionals in San Diego who specialize in various loan types.

Current Loan Limit Insights for San Diego

As of 2025, San Diego County has higher conforming loan limits due to local housing prices. For most areas:

  • Single-family home conforming limit: $1,006,250 
  • Jumbo loans apply to amounts above this threshold

This means you have more flexibility to finance a higher-priced home with a conventional loan than buyers in lower-cost regions.

Pro Tips for Homebuyers in San Diego

  • Get pre-approved early: Knowing your budget helps you focus your search. 
  • Watch interest rate trends: Locking in a rate at the right time can save thousands. 
  • Work with local experts: San Diego’s market is competitive and fast-moving. 
  • Consider total monthly costs: Property taxes, HOA fees, and insurance all matter.

Final Thoughts

With so many mortgage options, the right loan makes all the difference in your San Diego homebuying journey. Whether you’re buying your first condo in Mission Valley or a forever home in Poway, understanding your financing options is the first step to a confident purchase.

Let the Schwarz Real Estate Group help you navigate the process with expert guidance and trusted lender connections.