The median home price in downtown San Diego was $930,000 last month, while the average for the entire county over the past three months is around $952,000 (Redfin). According to Zillow, the average home value has surpassed $1 million. When you compare this figure with loan programs, it becomes clear why certain loans are frequently used in this area.

San Diego County is designated as a high-cost area by the FHFA. As of 2026, the conforming loan limit is set at $1,104,000, significantly higher than the national limit of $832,750 (FHFA). If you purchase a home at the median price of $930,000 with a 20% down payment, the loan amount would be around $740,000, comfortably within the conventional loan range. If you lower the down payment to 10% or 5%, the loan amount increases, often falling into the high-balance conventional loan category for high-cost areas.

For first-time homebuyers who may not have enough for a substantial down payment, considering an FHA loan is worthwhile. With a credit score of 580 or higher, you can purchase with a 3.5% down payment, and the FHA loan limit in San Diego County is also set similarly to the conventional high-cost area limits, making it feasible for the median-priced homes. However, if the down payment is less than 10%, you will need to pay mortgage insurance throughout the loan term, which should be factored into your calculations.

When discussing San Diego, one cannot overlook VA loans. There are over 115,000 active-duty military personnel and more than 240,000 veterans residing in the area, with VA loans accounting for 15.2% of mortgage users (as of August 2025). This is among the highest rates in the nation. The biggest advantage of VA loans is that they allow for purchases without a down payment and do not require PMI, but it's important to note that a funding fee of 1.25% to 3.3% of the loan amount applies.

If the purchase price exceeds $1,104,000, especially in neighborhoods with good school districts, you will enter the jumbo loan category. Jumbo loans typically require a credit score of 700 or higher and a down payment of 10% to 20%, making them more challenging to qualify for than conventional loans. Areas preferred by Korean families often have prices above the median, so it's wise to first check the market prices in your target neighborhood and gauge the appropriate loan category.

If you are moving from another state, it's also important to note that California's property tax assessment method differs from that of your previous residence. In California, property taxes are based on the purchase price, and there are limits on annual increases, making it more advantageous the longer you reside in a property. Considering this tax structure when choosing a loan program can help you estimate your actual monthly burden.

For investors looking for rental income or capital gains, the situation is somewhat different. FHA and VA loans are generally only applicable to owner-occupied homes, and when purchasing investment properties, conventional loans typically require a down payment of 15% to 25%, with interest rates often higher than for owner-occupied homes. In areas like San Diego, where rental demand is steady, there are many inquiries about conventional loans for investment purposes, but it's essential to consider the risks associated with fluctuating vacancy rates and rental price increases.

For families newly immigrating from Korea and preparing to settle in the U.S., having a short credit history can be a hurdle in the loan approval process. Some lenders may accept alternative documentation such as credit card usage history or records of rent and utility payments, so don't give up after being denied by one lender; comparing multiple lenders can be practically helpful.

When considering school districts, refer to GreatSchools ratings, but keep in mind that boundaries change frequently, so it's advisable to verify the assigned school for the specific address before purchasing. The market prices and loan limits discussed here are based on data from a specific point in time, and actual conditions may vary depending on the lender and individual credit status. This article is not investment or legal advice, and it is recommended to consult with a loan officer or real estate professional before proceeding with any contracts.