San Diego Down Payment Strategy Calculator

Your down payment is one of the largest decisions in the home-buying process — and in San Diego, with a median home price above $1 million, it can mean the difference between buying this year or next. This calculator shows what your down payment looks like across the four major loan programs on the same home, what your monthly payment would be including PMI or MIP, and how long it takes to save your goal at your current pace.

How Down Payments Differ by Loan Program

Each loan program approaches the down payment differently, and the right minimum for one borrower is rarely the right minimum for another. Here's how the four major programs treat the down payment and what trade-offs come with each level.

VA: Zero Down with Full Entitlement

VA loans are unique in U.S. lending: eligible service members, veterans, and certain surviving spouses can buy a primary residence with no down payment and no monthly mortgage insurance. A one-time funding fee (1.25% to 3.3%, often financed) replaces ongoing mortgage insurance, and that fee is waived for many disabled veterans. With full entitlement, there is no county loan limit, so VA also stays viable above San Diego's conforming threshold.

Conventional: 3% to 20%

Conventional loans support a wide range of down payment levels. Programs like Conventional 97 and HomeReady allow as little as 3% down. Standard conventional underwriting starts at 5%. PMI is required below 20% down, but unlike FHA's lifetime MIP, conventional PMI can be removed once you reach 20% equity — either by paying down the principal or by appreciation supported by a new appraisal.

FHA: 3.5% Minimum

FHA loans require 3.5% down with a 580+ credit score, or 10% down with a score between 500 and 579. FHA charges a 1.75% upfront mortgage insurance premium (UFMIP) that is typically financed into the loan, plus monthly MIP that, for most loans originated since 2013, lasts the full life of the mortgage. Putting more down on an FHA loan reduces the monthly MIP rate slightly but does not eliminate it.

Jumbo: 10% to 20%+

Jumbo loans on amounts above San Diego's $1,209,750 conforming limit typically require at least 10% down, with 20% being more common. Lenders set their own underwriting standards on jumbo, and many require six to twelve months of reserves on top of the down payment and closing costs. Some portfolio lenders offer 10% down jumbo to high-credit borrowers, but pricing improves meaningfully at the 20% threshold.

Picking the Right Down Payment

The cheapest minimum is not always the smartest choice, and the largest down payment is not automatically the safest. The right amount balances three competing pressures: getting into the home, managing monthly cost, and preserving cash for emergencies and improvements.

The Case for the Minimum

Putting down the program minimum gets you into the home faster and preserves cash for closing costs, moving expenses, and the first round of home repairs that almost always surface in the first year. In a rising market, the appreciation captured by buying earlier often outweighs the extra cost of mortgage insurance — especially in San Diego, where waiting another year can mean the same home costs significantly more.

The Case for 20%

Twenty percent down avoids private mortgage insurance entirely on conventional loans, lowers your monthly payment, and gives you stronger equity if home values dip. It also sometimes unlocks better pricing tiers with lenders. The trade-off is the years it takes to save that much in a market where home prices are appreciating faster than your savings — and the cash exposure once you hand over $200,000+ on a $1M home.

The Case for Something in Between

Many San Diego buyers land between 5% and 15% down. This range often hits the best balance: the conventional PMI is manageable and can be removed in a few years through appreciation, the loan amount is lower than a minimum-down scenario, and you keep meaningful cash reserves. Run multiple scenarios in the calculator above to see how each level affects both the monthly payment and how long it takes to save.

Down Payment Sources

Your down payment doesn't have to come entirely from a single savings account. Most loan programs allow several legitimate sources, each with its own documentation requirements.

• Savings and checking: The most straightforward source. Lenders typically want to see two months of statements with no large unexplained deposits.
• Gift funds from family: All major programs allow gifts. FHA allows 100% gift funds. Conventional rules vary by program — some require a portion of the down payment from the borrower's own funds. A signed gift letter and source-of-funds documentation are required.
• 401(k) loans: Borrowing against a 401(k) is allowed, though the new monthly repayment counts toward your debt-to-income ratio. Outright withdrawals trigger taxes and penalties and are usually a last resort.
• Sale proceeds: Equity from selling another property is a common source. The HUD-1 or closing disclosure from the sale documents the funds.
• Down payment assistance: California's CalHFA programs, plus city and county programs in San Diego, can supplement your down payment for first-time buyers and certain income brackets. Eligibility and program availability shift frequently.

What to Do Next

Use the calculator above to run a few scenarios at different down payment levels. Then, when you have a target in mind, run the same purchase price through the full payment calculator on the homepage to see the full PITI picture including taxes and insurance, and compare programs side-by-side on the loan comparison page. When you're ready for a real quote with current rates, request a quote from the featured lender — they can confirm which programs you qualify for and run actual numbers on your scenario.