There was a common assumption that if you put down 10% with a conventional loan, private mortgage insurance (PMI) would last a lifetime. In reality, you can cancel PMI once your equity exceeds 20%, and if you can use a VA loan, there may be no PMI at all. Clearing up this misunderstanding reveals what types of loans are actually prevalent in the San Antonio housing market.

As of August 2026, the median home price in San Antonio was reported at $300,450, while in May it was $295,000, and the three-month average through June was $265,000. The market generally moves within the range of $260,000 to $310,000.

With a conventional loan, PMI is required if the down payment is less than 20%, but for families with a credit score of 680 or higher and a solid down payment, they can reach 20% equity and cancel PMI, reducing long-term costs.

San Antonio is home to Joint Base San Antonio (JBSA), the largest joint military base in the U.S., resulting in a higher proportion of active-duty and veteran residents compared to other Texas cities. Consequently, the usage rate of VA loans remains steady. VA loans allow for a 0% down payment and do not require PMI, but they do come with a funding fee ranging from 1.25% to 3.3% of the loan amount, which fundamentally differentiates them from conventional loans.

For first-time homebuyers who may still lack credit scores or substantial savings, FHA loans appear to be a practical option. With a credit score of 580 or higher, you can start with a 3.5% down payment, but if the down payment is less than 10%, mortgage insurance premiums (MIP) will apply throughout the loan term, differing from the PMI cancellation structure of conventional loans.

Within San Antonio, areas like Alamo Heights and Stone Oak with good school districts tend to have higher median prices, while some parts of the South Side are lower. The situation can vary significantly even within the same city, so it's advisable to check the assigned school for a specific address, as boundaries can change frequently.

This price range falls significantly below the 2026 FHFA conforming loan limit of $832,750, and Bexar County is not designated as a high-cost area, making jumbo loans less common. Ultimately, understanding the structural differences between PMI, MIP, and funding fees for conventional, FHA, and VA loans is essential.

If you are coming from another state, it's important to check Texas's unique property tax rate structure. Tax and insurance conditions can vary by county, so it's wise to review them again before making a purchase.

Given the city's characteristics with many military families and veterans, there is a steady demand for rentals, leading some to consider investment purchases. However, VA and FHA loans are intended for primary residences and cannot be used for investment properties, so a conventional loan with a larger down payment is necessary. It's also important to note that rental prices cannot be assumed to always rise, so calculating vacancy rates and management costs is prudent.

For families who have just immigrated from Korea and are preparing to settle in the U.S., the short credit history may make the process feel daunting. In such cases, approaching FHA loans with lower credit score requirements or finding lenders that accept alternative credit data may be practical solutions.

San Antonio may also have local settlement support programs for military families. Conditions vary based on the timing of relocation and income criteria, so it's advisable to verify details through the housing support office or relevant agency on base.

San Antonio has a high proportion of workers in tourism and healthcare, leading to diverse rental demand. After selecting a loan program, obtaining pre-approval can be beneficial in competitive offers. This article does not constitute investment or legal advice, and it is recommended to consult with a professional before finalizing any contracts.