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Loan limits, jumbo territory, VA loans, down payment help, and the closing costs nobody quotes you upfront.
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San Diego County is a high-cost housing area, which means the conforming loan limit here is set well above the national baseline and a large share of local purchases still land in jumbo territory. That single fact drives most of the strategy: jumbo loans generally want stronger credit, more reserves, and a larger down payment than conforming loans. Because this is a military town, VA loans are unusually common and are often the strongest option available — no down payment requirement, no monthly mortgage insurance, and a funding fee that's waived for veterans with a service-connected disability rating. FHA works for lower down payments and softer credit but carries mortgage insurance that generally lasts the life of the loan at minimum down payment. Budget roughly 2% to 5% of the purchase price for closing costs on top of your down payment, and get a written Loan Estimate from at least three lenders on the same day so the rate comparison is real. Compare a credit union, a local mortgage broker, and a large lender — the spread between them on the same borrower profile is routinely worth thousands.
| Loan type | Down payment | Notes |
|---|---|---|
| Conforming | 3-20% | Under the county high-cost limit; best pricing |
| Jumbo | Often 10-20%+ | Common in coastal and central San Diego |
| VA | 0% | No monthly MI; funding fee may be waived |
| FHA | 3.5% | MIP typically for the life of the loan at min. down |
| Down payment assistance | Varies | State and county programs, income limits apply |
Rate shopping is mostly a process problem. Do it in a tight window and compare the same document.
A verbal rate is marketing. The Loan Estimate is a standardized federal form that shows the rate, points, lender fees, and total cash to close in the same order on every lender's version. Compare page 2 line by line.
Local tip: Request them all on the same day — rates move daily and yesterday's quote isn't comparable.
Multiple mortgage inquiries inside a short shopping window count as a single inquiry for scoring purposes, so applying with three lenders in the same week doesn't wreck your score.
A local credit union, an independent mortgage broker with access to many wholesale lenders, and a big bank or online lender will price the same borrower differently. Brokers often win on jumbo and unusual profiles.
A headline rate is often a rate with discount points baked in. Ask for the same lender's pricing at zero points so you're comparing apples to apples.
Ask what the lock period is, what an extension costs, and whether a float-down is available. In a slow escrow with contingencies, a 45- or 60-day lock is safer than a cheap 30-day one you have to extend.
Above the county conforming limit, expect tighter debt-to-income requirements, documented reserves of several months of payments, and sometimes a second appraisal. Start the paperwork earlier than you think you need to.
Some listing agents still wrongly treat VA offers as weak. A strong lender letter, a proactive appraisal timeline, and an agent who can explain VA appraisal rules to the other side fixes most of that.
Lenders count HOA dues and special assessments against your debt-to-income ratio. A condo with $600 monthly dues can cut your approved purchase price meaningfully versus a detached home at the same price.
Wildfire risk has made homeowners insurance harder and pricier in parts of East County and inland North County. Get an insurance quote during your inspection contingency, not after — it affects both your payment and your ability to close.
California's base property tax rate is roughly 1% of assessed value plus local bonds and assessments, and your assessment resets to your purchase price. Newcomers who budget from the seller's old tax bill get an unpleasant surprise.
Yes. San Diego County is designated a high-cost area, so the conforming limit is set above the national baseline. Purchases above that limit are jumbo loans with stricter underwriting.
Plan on roughly 2% to 5% of the purchase price for buyer closing costs, including lender fees, escrow and title, appraisal, and prepaid taxes and insurance. Your Loan Estimate shows the specifics.
For eligible service members and veterans they're usually the strongest option here: no down payment, no monthly mortgage insurance, and competitive rates. The funding fee is waived for those with a service-connected disability rating.
Three is the sweet spot. Apply within the same short window so the credit inquiries count as one, and compare the standardized Loan Estimates rather than verbal quotes.
The full relocation guide — costs, neighborhoods, and what surprises newcomers.
Real numbers on housing, utilities, insurance, and taxes.
How the rental market actually works here, plus renter rights.
Vetting agents, commissions, and buyer-broker agreements after the settlement.
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Written and fact-checked by the Sandi Spots Editorial team — San Diego residents publishing under Sleep Coast LLC. Every place we recommend has been visited in person or verified against an official source, and no business can pay for inclusion or a higher ranking. Last updated .