The decision tree
Most San Diego buyers narrow their choice via three questions:
- Are you a veteran? If yes, VA is almost always the answer.
- Is the price above $1,209,750? If yes, you're in jumbo territory.
- Is your credit 740+ and your down payment 5%+? If yes, conventional usually wins.
If none of those apply, FHA is often the right tool.
The full menu
Conventional (Conforming)
Backed by Fannie Mae or Freddie Mac. Loan amount up to $1,209,750 in San Diego County for 2026. Min 3% down for first-timers; 5% for repeat. PMI required under 20% but cancellable. Best pricing for FICO 740+. Conventional guide →
FHA
Insured by the Federal Housing Administration. Min 3.5% down with 580+ FICO; 10% with 500–579. More forgiving on credit and DTI. MIP required for the life of the loan if you put less than 10% down. Loan limit in San Diego: $1,209,750 (matches conforming). FHA guide →
VA
Guaranteed by the Department of Veterans Affairs. 0% down, no monthly mortgage insurance. One-time funding fee (waived for service-connected disabled vets). Available to qualifying veterans, active duty, and certain spouses. The single best loan program available. VA guide →
Jumbo
Anything above the conforming limit. Underwritten to private investor guidelines. Typical requirements: 700+ FICO, 10–20% down, 6–12 months reserves, lower DTI. Common for San Diego coastal purchases. Jumbo guide →
USDA
Zero-down rural loan. Most of San Diego County is ineligible. Some inland areas (Ramona, Borrego Springs, parts of Fallbrook) qualify. Income caps apply.
Non-QM
"Non-Qualified Mortgage" — for borrowers who don't fit agency boxes:
- Bank statement loans. Self-employed borrowers qualify on 12–24 months of business deposits instead of tax returns.
- DSCR loans. Investment properties qualified on the property's rental income, not the borrower's W-2.
- Asset-depletion loans. Wealthy retirees with portfolios but no income can qualify off liquid assets.
Rates run 0.75–2% above agency. Down payments 15–25%. Useful for the right scenario; expensive otherwise.
Side by side
| Program | Min Down | Min FICO | MI | 2026 Limit (SD County) |
|---|---|---|---|---|
| Conventional | 3% | 620 | PMI under 20% | $1,209,750 |
| FHA | 3.5% | 580 | UFMIP + life MIP | $1,209,750 |
| VA | 0% | ~580 (lender) | None | No cap (high CLTV) |
| Jumbo | 10–20% | 700+ | Sometimes (lender) | Above conforming |
| USDA | 0% | 620 | Annual fee | n/a |
| Non-QM | 15–25% | 660+ | Lender-specific | Varies |
What lenders won't tell you
Most loan officers can do any of these programs, but they push the ones their company prices most aggressively. Always get quotes from at least one bank, one broker, and one direct lender. The pricing differences across institutions on the exact same loan can be 0.25–0.5% in rate.