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FHA financing, San Diego County 2026
San Diego FHA Loans
A San Diego FHA loan reaches further than it does in many California counties. The county’s 2026 FHA limit is $1,104,000, the same as its conforming limit, which is high enough to buy at the city’s median price with 3.5% down. The real questions here are what the mortgage insurance costs each month, and which down payment programs still have money.
See if FHA fits FHA rates today
Where San Diego FHA Loans Fit the Market
FHA is usually thought of as a starter-home loan, and in the south and central city it is. But because the county limit is $1,104,000, a buyer can put 3.5% down on a home up to about $1,144,000, which takes in most of the middle of the market as well. For a borrower whose income supports the payment, that makes San Diego FHA loans a realistic option well beyond the entry tier.
Score requirements are forgiving: 580 and up qualifies for 3.5% down, and 500 to 579 needs 10% down. FHA pricing also moves much less with credit score than conventional pricing does, so a buyer in the 600s often sees a better rate on FHA than on a conventional loan. The trade-off is mortgage insurance, which an FHA borrower with less than 10% down pays for the life of the loan unless they later refinance.
Today’s FHA and Conventional Rates in San Diego County
Priced for San Diego County, October 27, 2026
0.187 points See every option 30-year fixed 7.125% 7.192% APR P&I $4,312/mo on $640,000
0.125 points See every option 15-year fixed 6.375% 6.436% APR P&I $5,531/mo on $640,000
$800 lender credit See every option 30-year VA 6.750% 6.794% APR P&I $4,151/mo on $640,000
$506 lender credit See every option 30-year jumbo 8.125% 8.208% APR P&I $9,652/mo on $1,300,000
0.322 points See every option
Par pricing for a single-family primary residence in San Diego County: 20% down, 30-year term unless noted, 780+ credit, 30-day lock, escrows included. Payments are principal and interest only; taxes and insurance add to them. Rates change through the day and are not a commitment to lend. Price your own San Diego scenario, no credit pull.
Entry-Level Market Insights for FHA Buyers
Sources: Redfin price tiers via Stacker (published Feb 23, 2026); HUD Mortgagee Letter 2025-23; U.S. Census Bureau ACS 2020-2024.
Redfin’s January 2026 tiers put the starter tier, the 5th to 35th percentile of homes, at about $649,000. At that price the 3.5% minimum down payment is roughly $22,700, before closing costs. The middle tier, around $904,000, still fits comfortably under the FHA limit. With a little more than half of city households renting, the pool of would-be first-time buyers is large, and FHA is often the program that turns a renter with modest savings into an owner.
Neighborhoods Where FHA Buyers Are Shopping
Typical values are from Zillow for September 2026. Down payments shown are the 3.5% minimum at those prices.
City Heights
Islenair, Fox Canyon, Teralta and Colina del Sol ran from about $407,000 to $772,000, roughly $14,000 to $27,000 down. Much of the housing here is older, so expect the FHA appraiser to look closely at paint, railings and the roof.
Otay Mesa
About $656,000, or close to $23,000 down. Some of the newer Otay Mesa subdivisions sit in Mello-Roos districts, and that special tax counts in the payment FHA qualifies you on.
San Ysidro
About $706,000, around $24,700 down, right by the border crossing. Buyers here may pair an FHA first with assistance, which is why program status matters so much (see below).
Linda Vista and Kearny Mesa
Roughly $781,000 to $790,000. At these prices the base loan crosses $726,200, which raises the annual premium from 0.55% to 0.75% at minimum down.
Mira Mesa and Rancho Bernardo
About $981,000 and $966,000. Both are within the county limit at 3.5% down for buyers with the income to carry the payment, and Rancho Bernardo adds a large stock of single-level homes.
Condo Areas: Downtown, Mission Valley, Pacific Beach, University City
These areas hold large condo inventories. An FHA condo loan needs the project to be FHA-approved or the unit to get a single-unit approval, so confirm that before you write an offer.
San Diego FHA Loan Limits for One to Four Units
FHA lets you buy a duplex, triplex or fourplex with 3.5% down as long as you live in one unit, and the limit climbs with each unit. Projected rent from the other units can count toward qualifying, subject to the lender’s rules. Here are the 2026 county limits and the highest price each supports at the minimum down payment.
| San Diego County, 2026 | FHA loan limit | Highest price at 3.5% down |
|---|---|---|
| One unit (house, condo, townhome) | $1,104,000 | $1,144,000 |
| Two units | $1,413,350 | $1,464,600 |
| Three units | $1,708,400 | $1,770,300 |
| Four units | $2,123,100 | $2,200,100 |
FHA forward mortgage limits for San Diego County, 2026 (HUD Mortgagee Letter 2025-23).
FHA Mortgage Insurance: Upfront and Monthly
Every FHA purchase pays an upfront premium of 1.75% of the base loan, normally added to the loan rather than paid in cash, plus an annual premium billed monthly. On a 30-year loan with a base amount up to $726,200, the annual rate is 0.55% with the minimum down and 0.50% with 5% or more. Above $726,200 it rises to 0.75% and 0.70%. At 3.5% down that threshold falls at a price of about $752,500, right in the middle of the San Diego market.
How long you pay matters as much as the rate. Put 10% or more down and the annual premium ends after 11 years. Put less down and it lasts for the life of the loan, which is why a common plan is to refinance into a conventional loan once they reach 20% equity. Here is the premium at $700,000:
| $700,000 purchase | Base loan | Upfront MIP, 1.75% | Monthly MIP | MIP lasts |
|---|---|---|---|---|
| 3.5% down | $675,500 | $11,821 | $310 (0.55%/yr) | Life of the loan |
| 5% down | $665,000 | $11,638 | $277 (0.50%/yr) | Life of the loan |
| 10% down | $630,000 | $11,025 | $263 (0.50%/yr) | 11 years |
Annual MIP rates for case numbers endorsed on or after March 20, 2023 (ML 2023-05), unchanged through October 2026.
FHA vs 5% Down Conventional at a 680 Score
At a strong credit score, conventional with 5% down often wins because private mortgage insurance is cheap and can be removed. At 680 the picture changes, because FHA pricing barely moves with score while conventional pricing and PMI both get more expensive. This runs today’s county rates on a $700,000 purchase at a 680 score.
| $700,000 purchase, 680 credit | Conventional, 5% down | FHA, 3.5% down |
|---|---|---|
| Down payment | $35,000 | $24,500 |
| Loan amount | $665,000 | $687,321 with 1.75% upfront MIP |
| Today’s rate (APR) | 8.125% (8.205%) | 7.250% (7.323%) |
| Principal and interest | $4,938/mo | $4,689/mo |
| Mortgage insurance | $532/mo PMI | $310/mo MIP |
| Before taxes and insurance | $5,470/mo | $4,998/mo |
| Mortgage insurance ends | At 20% equity (can be removed) | Life of the loan with under 10% down |
Before property tax, insurance and HOA dues. Rates are today’s county par prices with their APR and change daily.
FHA Requirements for San Diego Buyers
- Credit and down payment: 3.5% down at 580 or higher, 10% down from 500 to 579. Many lenders set higher minimums, so shopping matters.
- Occupancy: the home must be your primary residence, including when you buy two to four units.
- Loan size: the base loan cannot exceed the county limit for the number of units.
- Property condition: FHA appraisers check health and safety items such as peeling paint on older homes, missing handrails or a roof near the end of its life.
- Condos: project approval or a single-unit approval.
- Credit scoring in 2027: HUD will let lenders use FICO 10T and VantageScore 4.0 alongside Classic FICO for case numbers assigned on or after January 1, 2027, with the same thresholds.
Down Payment Assistance for City of San Diego Buyers
San Diego has several assistance programs, but some are closed or do not apply to city addresses. As of the San Diego Housing Commission’s February 1, 2026 funding update:
- SDHC Middle-Income First-Time Homebuyer Program: funds available. For buyers in 921xx ZIP codes who have not owned in three years and earn 80% to 150% of area median income (for a four-person household, about $132,400 to $196,200). It offers a $40,000 deferred loan at 4% simple interest plus a $10,000 closing cost grant, with no payments for five years and then a 120-month payoff. Buyers need a 640 score, 3% of their own funds and homebuyer education, and the price cap is $1,250,000.
- SDHC Low-Income First-Time Homebuyer Program: no funding available. It serves buyers up to 80% of area median income with up to $125,000 deferred.
- County of San Diego programs: not for city addresses. The county’s low- and moderate-income programs cover unincorporated areas and certain participating cities, not the City of San Diego (the low-income program also excludes Chula Vista).
Statewide, CalHFA’s MyHome Assistance Program can cover up to 3.5% of the price as a deferred junior loan when paired with a CalHFA FHA first mortgage, and its Zero Interest Program pairs with CalPLUS FHA loans and MyAccess with CalPLUS Access FHA loans. The Dream For All shared appreciation loan is drawing based; its 2026 portal closed on March 16. Funding rounds change through the year, so confirm a program’s status the week you apply.
How a San Diego FHA Loan Gets to Closing
- Check the fitSend your price range, score range and savings. Mike compares FHA with conventional and any program you may qualify for.
- Line up assistance earlyIf you are using SDHC or CalHFA help, Mike confirms the lender participates and the funds are open before you shop.
- Pre-approval and offerIncome and assets are reviewed up front; your agent writes the offer with the FHA financing named.
- FHA appraisalA San Diego County appraiser values the home and notes any required repairs, which you and the seller negotiate.
- CloseYou sign electronically or with a mobile notary, and local escrow funds the loan.
Eligible veterans and service members should also price a San Diego VA loan, which has no monthly mortgage insurance. Compare today’s programs on the San Diego mortgage rates page, or read the statewide FHA loan guide.
FHA Loan Questions From San Diego Buyers
Can I buy a $1 million home with a San Diego FHA loan?
Yes, if the base loan stays within the $1,104,000 county limit and your income supports the payment. With 3.5% down on $1,000,000 the base loan is $965,000, and the 1.75% upfront premium is added on top. Because that base loan is over $726,200, the annual premium is 0.75% at minimum down, about $603 a month at the start.
Who qualifies for the SDHC Middle-Income homebuyer program?
First-time buyers, meaning no ownership in the past three years, buying in the City of San Diego (921xx ZIP codes) with household income from 80% to 150% of area median income, a 640 or higher score, 3% of their own money and a homebuyer education course. The price limit is $1,250,000. SDHC listed funds as available in 2026, but check before you apply.
Can I use FHA for a duplex in San Diego?
Yes. FHA finances two to four units with 3.5% down when you live in one of them. The 2026 San Diego County limit for a two-unit property is $1,413,350, and four units go up to $2,123,100. Projected rent from the other units can be counted toward qualifying, subject to the lender’s rules.
When does FHA mortgage insurance end?
With 10% or more down, the annual premium ends after 11 years. With less than 10% down it stays for the life of the loan. The usual way out is to refinance into a conventional loan once you have enough equity, often around 20%. The 1.75% upfront premium is a one-time charge, usually financed into the loan.
What credit score do I need for a San Diego FHA loan?
FHA allows 3.5% down with a score of 580 or higher and 10% down from 500 to 579. Individual lenders often set higher minimums, which is one reason to shop more than one. From January 1, 2027, lenders may also use FICO 10T or VantageScore 4.0, with the same thresholds.
Can I get an FHA loan on a downtown San Diego condo?
Only if the building is FHA-approved or the unit qualifies for a single-unit approval. Downtown and Mission Valley have many condo buildings, and approval status varies building by building. Give Mike the building name before you write an offer and he will check.
Can I combine a San Diego FHA loan with CalHFA help?
Yes. CalHFA’s MyHome Assistance Program pairs with a CalHFA FHA first mortgage for up to 3.5% of the price as a deferred junior loan, within CalHFA income limits. The lender has to be CalHFA-approved, and program details can change during the year.
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Send the price range, your rough credit score and how much you have saved. Mike will compare FHA against conventional and any program you may qualify for, as a direct lender that can also broker. No credit pull to start.
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