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San Diego's median home price sits near $937,500 — the benchmark for most buyers here. At 5.875%, a $750,000 conventional loan runs $4,437 monthly for principal and interest alone. That's the floor; property tax, insurance, and HOA stack on top.
The 20% down payment ($187,500) is the magic number in San Diego's market. It kills PMI entirely and locks you into the best conventional pricing. Below 20% down, mortgage insurance adds $150–$250 monthly depending on your LTV.
5.875%
Interest rate
$4,437
Monthly P&I
740
Min FICO for best rate
$1,104,000
Conforming limit
21–28 days
Typical close time
Conventional loans in San Diego start at 620 FICO, but 740+ gets you the best rates and terms. Most lenders want 3–20% down; 20% down is standard for no PMI. Your debt-to-income ratio typically caps at 43–50% depending on reserves and credit.
San Diego County's median household income is $102,285. That income comfortably carries a $750,000 loan at this rate. If you're above that, you're in good shape; below it, you'll need a co-borrower or larger down payment to hit the DTI ceiling.
California's conventional market is split between retail banks, credit unions, and mortgage brokers. Retail lenders (Wells Fargo, Bank of America) move slower but have in-house underwriting.
Agency loans (Fannie Mae and Freddie Mac) dominate the $750K range in San Diego. Both follow the same underwriting rules, so your approval odds are similar across lenders. The difference is rate, points, and service speed.
Conventional loans make sense in San Diego when you have 20% down and a 740+ FICO. Below that, FHA's lower rate (and 3.5% down option) pencils better despite lifetime mortgage insurance. Above $937,500, jumbo loans kick in and rates climb 0.25–0.5%.
The $750,000 conforming sweet spot is where conventional shines. You're not paying jumbo premiums, PMI vanishes at 80% LTV, and your rate stays competitive. If you're buying a $1.1M home, the math flips — FHA or jumbo becomes the conversation.
FHA loans in San Diego run a lower rate but carry mortgage insurance for life if you put down less than 10%. With 3.5% down, you're paying 1.75% upfront MIP plus 0.55% annually.
Conventional at 20% down beats FHA when you can afford the larger down payment. No insurance, no annual fees, cleaner exit if you refinance. FHA wins only if you're short on cash and can't reach 20% — then the lower rate offsets the lifetime insurance cost.
San Diego's job market spans defense, biotech, tourism, and tech. Stable employment supports mortgage qualification and long-term home values. Most buyers here are moving for work or lifestyle — both anchor the decision to buy conventional rather than rent.
The city's school districts vary widely by neighborhood. If you're buying in a top-rated area (La Jolla, Rancho Santa Fe), your home holds value better.
At 5.875% APR on a $750,000 loan, principal and interest run $4,437 monthly. Add property tax, insurance, and HOA — total housing cost is typically $5,500–$6,200 depending on the neighborhood.
Yes. 20% down (80% LTV) is the only way to skip PMI on a conventional loan. Below 20% down, PMI is required and typically runs $150–$250 monthly until you hit 78% LTV through appreciation or extra payments.
Conventional loans start at 620 FICO, but 740+ gets you the best rates and terms. At 620–679, expect a rate bump of 0.5–1% and tighter underwriting. Most San Diego buyers with 740+ FICO close in 21–28 days.
Conventional wins if you have 20% down and 740+ FICO. FHA's lower rate only beats conventional if you're putting down less than 10% and can't reach 20%. With 20% down, conventional has no PMI and no annual insurance fees.
Conventional loans typically close in 21–28 days. Brokers often close faster than retail banks because they have multiple lenders and less internal red tape. A clean file with 740+ FICO can close in 18 days.
Conventional Loans in San Diego