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Conventional Loans in San Diego
San Diego's price range spans from $500k condos in North Park to $2M homes in La Jolla. Conventional loans handle both conforming and jumbo territory here.
Most San Diego borrowers choose conventional financing when they have solid credit and 5-10% down. It beats FHA on monthly costs for scores above 680.
This market moves fast in desirable neighborhoods like Point Loma and Carmel Valley. Conventional approval gives you cleaner offers that sellers prefer.
Investment properties and second homes work better with conventional loans. San Diego has plenty of both, especially in beach communities.
You need 620 minimum credit, but 740+ unlocks the best rates. Most San Diego lenders want 5% down for primary homes, 15% for investment properties.
Debt-to-income ratios cap at 50% with strong credit. Self-employed borrowers need two years of tax returns showing stable income.
No upfront mortgage insurance like FHA charges. If you put down less than 20%, monthly PMI runs $50-$200 per $100k borrowed depending on credit.
You can drop PMI once you hit 20% equity through payments or appreciation. San Diego's market has helped borrowers reach that faster than most cities.
We work with 200+ wholesale lenders offering conventional programs. Rate spreads between best and worst can hit 0.5% for identical scenarios.
Credit unions in San Diego often compete hard on conforming loans under $766,550. Portfolio lenders handle exceptions that Fannie Mae won't touch.
Some lenders price La Jolla and Del Mar properties differently than Chula Vista or El Cajon. Location impacts both rates and approval overlays.
Condos in high-rises downtown need warrantable status. Some lenders won't touch buildings over 20 stories or with hotel components.
San Diego borrowers waste money putting 20% down when they have 760+ credit. PMI costs less than the opportunity cost of tying up that cash in this market.
I see buyers lose homes trying to hit 20% down. Put 10% down, lock the house, refinance out of PMI in two years when values climb.
Conventional loans let you buy a fourplex with 15% down and live in one unit. That's how smart buyers build wealth in expensive San Diego.
Watch out for lenders adding overlays above Fannie Mae requirements. Some demand 700 credit when guidelines allow 620. We find lenders that follow actual guidelines.
FHA loans cost less upfront but more monthly for most San Diego price points. Break-even happens around 660 credit score.
Jumbo conventional kicks in above $766,550 in San Diego County. Terms stay similar but rates run 0.125-0.375% higher depending on down payment.
VA loans beat conventional if you're eligible, offering zero down with no PMI. But conventional has no funding fee and works for non-veterans.
ARMs make sense for buyers planning to move in 5-7 years. You save 0.5-0.75% versus 30-year fixed on the conventional side.
San Diego's military population qualifies for VA loans, so conventional borrowers include civilians, contractors, and those buying investment properties.
Coastal properties in zones requiring flood insurance add $800-$2,000 annually. Lenders verify coverage before closing, which can delay timelines.
HOA fees in downtown high-rises run $500-$1,200 monthly. That eats into debt-to-income ratios and affects how much house you qualify for.
Tijuana commuters often have cross-border income. Most conventional lenders won't count Mexican wages, but we know the few who will with proper documentation.
Minimum is 620, but you'll pay premium rates below 680. Scores above 740 unlock the best pricing and easiest approvals we see in San Diego's competitive market.
Primary homes start at 5% down with PMI. Investment properties need 15% minimum, and second homes require 10% down with most lenders.
Yes, but the building must be warrantable with proper HOA reserves and owner-occupancy ratios. Downtown high-rises need extra lender approval.
The conforming limit is $766,550 for 2024. Above that, you need jumbo financing with slightly higher rates and stricter requirements.
Absolutely, with two years of tax returns showing stable income. We need to see consistent earnings, not necessarily increasing, to satisfy underwriters.
Standard timeline is 21-30 days from application to closing. San Diego's competitive market rewards borrowers who get pre-approved before shopping.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.