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San Diego's median home price sits around $777K. At 5.375%, a $750K FHA loan carries a $4,200 monthly payment for principal and interest alone. That's the entry point for most first-time buyers here who don't have 20% down.
FHA loans dominate San Diego's market because down payments start at 3.5% with a 580 FICO. The county's median household income of $102,285 stretches to cover homes in the $750K-$850K range when rates hold steady.
5.375%
Current FHA Rate
$4,200
Monthly P&I ($750K)
580
Minimum FICO
3.5%
Down Payment Min
$1,104,000
San Diego FHA Limit
30-45 days
Typical Close
FHA Loans in San Diego
FHA requires a 580 FICO minimum. Most lenders tighten to 620-640 in practice. Down payment ranges from 3.5% to 10%. Below 10% down, mortgage insurance premium (MIP) runs for the life of the loan. At 10% down or more, MIP cancels after 11 years.
San Diego's median household income of $102,285 supports a $750K purchase with FHA. Debt-to-income limits run 43-50% depending on compensating factors. A $750K loan at 5.375% leaves room for property taxes, insurance, and HOA fees within those limits.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in San Diego.
San Diego's median home price sits around $777K. At 5.375%, a $750K FHA loan carries a $4,200 monthly payment for principal and interest alone. That's the entry point for most first-time buyers here who don't have 20% down.
FHA loans dominate San Diego's market because down payments start at 3.5% with a 580 FICO. The county's median household income of $102,285 stretches to cover homes in the $750K-$850K range when rates hold steady.
FHA requires a 580 FICO minimum. Most lenders tighten to 620-640 in practice. Down payment ranges from 3.5% to 10%. Below 10% down, mortgage insurance premium (MIP) runs for the life of the loan. At 10% down or more, MIP cancels after 11 years.
California's FHA market splits between retail banks, credit unions, and mortgage brokers. Retail lenders (Wells Fargo, Chase, Bank of America) move slower but offer lower rates on high-volume loans.
FHA loans in California face tighter overlays than the federal baseline. Most lenders require 640+ FICO, 3-6 months reserves, and full employment verification. Appraisals take 7-10 days. Closing typically runs 30-45 days from application to funding.
FHA makes sense in San Diego when you have 3.5-9% down and a 620+ FICO. At $750K, the 5.375% rate beats conventional by 0.25-0.5% because FHA's insurance replaces PMI. The tradeoff: MIP stays on the loan unless you refinance.
Above $800K or with 20% down, conventional pencils better. FHA's lifetime insurance costs more over 15 years than conventional PMI cancels at 78% LTV. Run both scenarios with your actual numbers before deciding.
Conventional loans at 20% down carry no PMI and no rate penalty. FHA at 3.5% down includes lifetime mortgage insurance. The monthly cost difference depends on your loan amount, but FHA's lower rate often offsets the insurance for buyers staying under 10 years.
If you plan to stay 15+ years, conventional at 20% down wins. If you're moving or refinancing within a decade, FHA's lower rate and smaller down payment make the math work in San Diego's $750K-$850K range.
San Diego's real estate market moves fast. Homes listed Monday often have offers by Wednesday. FHA's 30-45 day close timeline keeps you competitive against all-cash buyers if your appraisal clears on time.
The county's median household income of $102,285 means most San Diego buyers stretch to afford homes here. FHA's 3.5% down and 43-50% DTI limits make homeownership possible for teachers, nurses, and service workers who anchor the local economy.
Principal and interest run $4,200 per month. Add property taxes, insurance, and mortgage insurance (MIP) on top. At 96.5% LTV, MIP stays for the life of the loan unless you refinance.
No. FHA requires only 3.5% down minimum. But mortgage insurance (MIP) runs for the life of the loan if you put down less than 10%. At 10% down or more, MIP cancels after 11 years. Refinancing is the only way to drop MIP below 10% down.
FHA's federal floor is 580 FICO. Most California lenders require 620-640 in practice. At 740 FICO, you qualify easily. Rates improve above 680. Below 620, expect tighter overlays and slower approval.
Yes. San Diego is a high-cost area with an FHA limit of $1,104,000. A $900K purchase with 3.5% down means a $868K loan, well within limits. Your debt-to-income and reserves matter more than the loan size at that price point.
Typical timeline is 30-45 days from application to funding. Appraisal takes 7-10 days. Underwriting takes 5-7 days. Delays usually come from missing documents or appraisal issues, not FHA itself. Lock your rate early to protect against market moves.