How Much Down Payment Do I Need to Buy a House in San Diego in 2025?

TL;DR

Most buyers land between 3 % and 20 % down. - The median San Diego buyer closed with $169 K down in December 2024 - about 17 % of price. - Minimums: 0 % (VA), 3 % (Conventional), 3.5 % (FHA). - Local programs can cover up to 22 % of price. - Combining personal funds with assistance is letting buyers hit 20 % sooner and avoid PMI.

What’s the average home price in San Diego today?

According to Realtor.com, the median listing price hit $969,000 in June 2025. Rocket Homes shows the median sold price slightly lower at $877,748. Those figures will anchor the examples below.

Prices differ wildly between entry‑level condos in El Cajon and the best neighborhood to live in San Diego - think La Jolla or Del Mar - so let’s keep the median as our benchmark.

Why it matters

Lenders calculate your required down payment as a percentage of the purchase price. A 3 % loan on the current median listing would mean about $29 K; a full 20 % would top $193 K.

How much is 3 %, 5 %, 10 %, and 20 % on today’s prices?

(Rounded to the nearest dollar.)

Which loan programs set the rules?

Conventional loans (Freddie & Fannie)

• Minimum down: 3 % for first‑time buyers with good credit and a conforming loan amount.

• PMI: Required until you reach 20 % equity (can be removed later).

• San Diego twist: Anything over $977,500 (2025 conforming limit) rolls into jumbo territory and often demands 10 % - 15 % down.

FHA loans

• Minimum down: 3.5 % with a 580+ credit score.

• Mortgage insurance: Up‑front fee + monthly MIP for at least 11 years (or life of loan if <10 % down).

• Good for: Buyers with “okay, not stellar” credit who still want to keep cash in the bank.

VA loans

• Minimum down: 0 % for eligible veterans; VA itself does not require any down payment.

• Lenders may ask for some skin in the game on high loan amounts, but most San Diego vets still close at zero down.

Down‑payment assistance & layered financing

Between state and local programs you can often stack assistance:

• San Diego Housing Commission deferred‑payment loan up to 19 % of price and a 4 % closing‑cost grant up to $10K.

• County of San Diego DCCA: Low‑interest loan covering up to 22 % of price + closing cost help.

• CalHFA MyHome: Up to 3 % of price as a deferred junior loan.

Pro tip from a top San Diego real estate agent: Use assistance to close the gap between 17 % (the typical buyer) and 20 % to instantly eliminate PMI. That’s saving $450 - $900 per month on many conforming loans.

Is it worth waiting until you have 20 %?

Below is the candid conversation I have with clients every week as the best San Diego broker for first‑timers:

Key takeaway: If you can comfortably hit 20 % without emptying your emergency fund, go for it. But buying at 5 % - 10 % plus assistance often beats waiting while prices climb another 5 %.

In fact, some top producing real estate agents in San Diego report that the sweet spot for competitive offers this spring has been 10 % - 12 % down - high enough to convey strength without depleting cash.

Real stories from the 2025 market

Emily & Carlos, Hillcrest condo (April 2025) They had $45K saved - just 4.6 % on a $970K two‑bed. We layered CalHFA MyHome (3 %) and the city’s 4 % grant, nudging total funds past 11 %. Seller credits paid the rest of closing costs. Their payment - with PMI - was still $380/month lower than their previous rent.

Alicia, Navy veteran, Chula Vista single‑family (June 2025) VA certificate = $0 down. The seller balked at VA initially, but strong pre‑approval and my negotiation (I’m a top San Diego real estate agent who’s closed 50+ VA deals) sealed it. She moved in with $7,800 out‑of‑pocket (mostly appraisal, insurance, and escrow deposits).

The Sorianos, Upgraders in La Mesa (February 2025) They sold in 2024, pocketed equity, and put 22 % down on a $850K craftsman. That avoided PMI and kept their rate under jumbo pricing. Bigger cash upfront, but monthly payment now $1,100 lower than a 10 % scenario would have been.

Action plan: Saving and negotiating your down payment in 2025

(Based on current San Diego real estate market trends and feedback from buyers looking for Affordable places to live in San Diego as well as those chasing upscale San Diego neighborhoods.)

1.    Audit your timeline. Are you 3 - 6 months out or 18 months away? That dictates whether you stick cash in a high‑yield savings account or diversify.

2.    Automate savings. Set bi‑weekly transfers right after payday.

3.    Tackle debt first. Paying off a $5K credit‑card balance at 22 % APR nets a better return than most investments.

4.    Leverage employer perks. Some San Diego tech and biotech firms now match down‑payment savings up to $10K.

5.    Get pre‑approved early. Lenders will tell you exactly what they require for 3 %, 5 %, or 10 % options.

6.    Work with a best realtor in San Diego** (your trusted real estate agent San Diego CA) who knows assistance programs - some require the agent to be on an approved list.

7.    Ask for seller credits. In the current market (days‑on‑market has crept up to 31), many sellers will cover 1 % - 2 % of price toward closing.

FAQs (2025 Edition)

How much do most first‑time buyers actually put down in San Diego? A Redfin analysis quoted by Axios shows a $169K median down payment, about 17 % of purchase price in December 2024.

Is 3 % really enough, or will my offer look weak? With solid pre‑approval and a savvy agent, 3 % offers are getting accepted - especially on homes that have sat 15+ days. Strengthen the rest of the terms (inspection days, appraisal gap coverage).

Can I combine FHA with local assistance? Yes. CalHFA’s MyHome pairs with FHA and covers up to 3.5 % down, letting you step in with minimal cash.

Are jumbo loans still at 10 % down in 2025? Many jumbo lenders require 10 % - 15 % plus higher reserves. If your target price is just over the conforming limit, consider a “piggyback” 80‑10‑10 to keep the first loan conforming.

What if rates drop after I buy with 5 % down? Once you hit 20 % equity you can refi into a no‑PMI loan. If rates fall before that, you can still refi - just expect PMI to continue until equity crosses the threshold.

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Ready to crunch your numbers? Reach out and we’ll build a personalized plan.

Scott Cheng | Best San Diego Realtor & Broker Call or text (858) 405‑0002 • scott@scottchengteam.com