FINANCING,
WITHOUT THE GUESSWORK
Not a textbook. A plain-language guide to what each loan actually means for you — so you walk into a lender meeting knowing exactly what you're doing.
LOAN TYPES
Every loan type serves a different buyer. Here's who each one is built for — and what it actually costs.
Conventional
Most CommonBest for
- ✓ Buyers with good credit (680+)
- ✓ You have 5–20% saved for down payment
- ✓ You want the best rate and a fast close
- · 3–20% down payment
- · Best rates with 740+ credit score
- · No PMI required at 20%+ down
- · Conforming limit: $766,550 in SD County
- · Fastest closings — typically 21–30 days
The go-to for most buyers. If your credit is solid and you have some savings, this is where you start.
Jumbo Loan
Higher price pointsBest for
- ✓ Buying in coastal SD — La Jolla, Del Mar, Coronado
- ✓ Your price is above $766,550
- ✓ Strong income and 10–20% to put down
- · Loans above $766,550 (SD conforming limit)
- · 10–20% down typically required
- · Excellent credit required (720+)
- · Stricter income documentation
- · Slightly higher rates than conventional
Required for most coastal purchases in San Diego. The bar is higher, but the right lender makes it manageable.
FHA Loan
First-Time BuyersBest for
- ✓ Credit score under 700 — or rebuilding credit
- ✓ You have 3.5% down but limited cash reserves
- ✓ First-time buyers who need more flexibility
- · Minimum 3.5% down with 580+ credit
- · Credit scores as low as 500 (10% down)
- · Mortgage Insurance Premium (MIP) required
- · MIP is permanent if < 10% down
- · Max loan ~$977,500 in SD County
More forgiving on qualifications, but carries ongoing insurance costs. Great stepping stone into ownership.
VA Loan
Veterans & MilitaryBest for
- ✓ Veterans, active duty, or surviving spouses
- ✓ You want zero down and no mortgage insurance
- ✓ You want the best rate on the market
- · 0% down payment — no minimum required
- · No private mortgage insurance (PMI)
- · Competitive rates — often below market
- · One-time VA funding fee (waived for disabled vets)
- · Available to eligible veterans, active duty & surviving spouses
The most powerful loan available, period. If you qualify, this is almost always the right choice.
USDA Loan
Rural AreasBest for
- ✓ Buying in rural or semi-rural areas
- ✓ You meet household income limits
- ✓ Zero down is a priority and the area qualifies
- · 0% down payment in eligible areas
- · Annual guarantee fee of 0.35% (vs. PMI)
- · Income limits apply (based on household size)
- · Property must be in USDA-eligible zone
- · ⚠ Most of San Diego County is NOT eligible
Excellent if you qualify, but most SD neighborhoods don't. Inland and East County areas are worth checking.
Not sure which loan fits your budget?
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BUYING IN CASH
Cash is the most powerful position in any real estate market — and San Diego is no exception. If you have the capital, here's exactly what that advantage buys you.
Strongest Offer Possible
Cash buyers routinely beat financed offers, sometimes even at lower prices. Sellers often value certainty as much as the final number.
No Appraisal Contingency
Financed buyers are usually tied to appraisals. Cash buyers may be able to remove that contingency — reducing one of the biggest deal risks for a seller.
Close in 7–14 Days
Cash deals can often close in less than half the time of a financed offer. Speed creates real leverage in a competitive market.
No Rate Risk
Interest rates don't affect you. Your cost is locked at closing — no surprises, no last-minute payment changes.
Negotiate From Strength
A clean offer with fewer contingencies and a faster close can create negotiating power. Sometimes, certainty is worth real money.
THINGS BUYERS
ACTUALLY ASK
No textbook answers — just plain ones.
Should I wait for rates to drop? +
Timing the market on rates is harder than it looks — and usually expensive. Every month you wait, you're still paying rent. And when rates do drop, more buyers flood the market and prices go up. The real question is: does buying today make sense for your situation? If the numbers work now, waiting often costs more than it saves. Let's run them together.
Can I buy with student loans? +
Yes — and it's more common than you'd think. Lenders look at your debt-to-income ratio, which includes student loan payments. Being on an income-based repayment plan can actually help your DTI calculation. Both FHA and conventional loans allow student loan debt. The key is knowing how your lender counts it — and that varies. Let me walk you through it.
Do I need 20% down? +
No. Most buyers in San Diego put down 3–10%. The 20% rule exists to avoid PMI (mortgage insurance), which adds roughly 0.5–1.5% to your annual cost. But PMI isn't permanent — it drops off once you reach 20% equity. If putting 20% down would drain your savings, it's usually smarter to put down less and keep reserves. We'll figure out what makes sense for your specific numbers.
How much should I have saved before I start? +
Budget for down payment + 2–3% in closing costs + 3–6 months of mortgage payments in reserves. On a $700K home with 5% down ($35K), you'd want another $14–21K for closing costs and cash buffer — roughly $50–60K total. It adds up fast. Run the numbers with the calculator below, then let's talk strategy.
CLARITY ISN'T A STYLE. IT'S THE STANDARD.
LET'S BUILD YOUR
BUYING STRATEGY.
Numbers are just the start. Book a call and we'll map out a real plan for your situation.
Want the full buying roadmap? Read the Buyer's Guide.