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San Diego's median home price sits around $750,000 for a single-family primary residence. At 5.5%, a zero-down VA loan on that amount runs $4,258 per month in principal and interest alone. That's the real cost before taxes and insurance.
VA loans dominate the San Diego market because they're the only program that lets you buy without a down payment and without PMI. For active military and veterans, that's a massive advantage in a county where the median household income is $102,285.
5.5%
Interest Rate
$4,258
Monthly P&I
$750,000
Loan Amount
620
Min. Credit Score
$0
Down Payment
21-30 days
Typical Close
VA Loans in San Diego
VA loans require a Certificate of Eligibility from the VA. Credit floor is typically 620, though most lenders prefer 680+. You need a valid military status: active duty, honorable discharge, or surviving spouse of a veteran.
Down payment is zero. Your funding fee replaces PMI — first-time use is 2.15% of the loan amount. If you're rated 10% or higher for VA disability, the funding fee is waived entirely. At $750,000, that's a $16,125 savings.
San Diego County's median household income of $102,285 stretches to cover a $750,000 purchase comfortably. Debt-to-income limits run 41-50% depending on the lender, so most households here qualify without strain.
Local decision guide
Use this guide to connect va loans eligibility, lender expectations, and local market factors before comparing payment options in San Diego.
San Diego's median home price sits around $750,000 for a single-family primary residence. At 5.5%, a zero-down VA loan on that amount runs $4,258 per month in principal and interest alone. That's the real cost before taxes and insurance.
VA loans dominate the San Diego market because they're the only program that lets you buy without a down payment and without PMI. For active military and veterans, that's a massive advantage in a county where the median household income is $102,285.
VA loans require a Certificate of Eligibility from the VA. Credit floor is typically 620, though most lenders prefer 680+. You need a valid military status: active duty, honorable discharge, or surviving spouse of a veteran.
VA loans in California are offered by both retail banks and mortgage brokers. Brokers typically close faster and offer tighter pricing because they shop multiple lenders. Retail banks have their own underwriting but often carry higher rates.
Most VA lenders in California close in 21-30 days. San Diego's high volume means competitive pricing — lenders fight for VA business here. Expect to see rates quoted within 24 hours of application.
VA loans carry no prepayment penalty. You can refinance into a conventional loan or another VA loan without restriction. That flexibility makes them especially popular in San Diego's moving military population.
VA loans make sense in San Diego for any veteran or active-duty buyer with a 620+ credit score. The zero-down structure is unbeatable — conventional loans at this price require 20% down ($150,000) to avoid PMI, and FHA requires 3.5% down plus lifetime...
The only scenario where VA doesn't pencil is if you're buying below $500,000 in San Diego. At that price, the funding fee ($10,750) eats into equity faster than it's worth. Above $600,000, VA's zero-down advantage crushes every other option.
Conventional loans at $750,000 require 20% down ($150,000) to avoid PMI. With 10% down, you'd carry PMI for years. VA's zero-down structure means you keep that $150,000 in the bank for reserves or repairs.
FHA runs a lower rate than VA but charges mortgage insurance for the life of the loan if you put less than 10% down. At $750,000, that's roughly $300-400 per month forever. VA's 2.15% funding fee is a one-time cost, not a monthly drain.
San Diego's military presence is massive — Naval Base San Diego, Camp Pendleton, and Naval Air Station North Island anchor the region. That means VA lenders here understand military timelines and can close around PCS moves.
The county's median household income of $102,285 reflects a strong mix of military and civilian earners. VA loans are built for this income profile — they don't require 20% down savings, which matters for families relocating on military orders.
No. VA loans require zero down. You pay a funding fee (2.15% of the loan amount, or about $16,125 on a $750,000 purchase) instead of a down payment. If you're rated 10% or higher for VA disability, the funding fee is waived entirely.
At 5.5% (as of April 15, 2026), principal and interest run $4,258 per month on a $750,000 loan. That's before property taxes, insurance, and HOA fees. The rate includes 0.197 discount points ($1,478 upfront).
Yes, technically — VA's minimum is 620. But most lenders in San Diego require 680+. Call to discuss your specific score. A 640 may work with compensating factors like strong income or reserves.
No. The funding fee is a one-time cost (2.15% on first-time use) rolled into your loan. PMI is monthly and never goes away on conventional loans below 80% LTV. VA's fee is cheaper and disappears after closing.
Yes. Surviving spouses of veterans who died in service or from service-connected disabilities can use the VA loan benefit. You'll need a Certificate of Eligibility from the VA. Funding fee is waived for surviving spouses.