How Much Money Down Do You Need to Buy Your First Home in San Diego County?

by Tina Rogers

Stepping into the world of homeownership is both exciting and a little overwhelming—especially when it comes to figuring out how much money you’ll need up front. If you’re a first-time buyer in San Diego County, you might be pleasantly surprised by the range of options available, from low down payment loans to local assistance programs that can help make your dream a reality.

Typical Down Payment Requirements

Traditionally, many people think you need to put down 20% of a home’s purchase price. While this is still a solid goal, it’s not a requirement—especially for first-time buyers. In San Diego County, with home prices often above the national average, most new buyers put down much less.

Conventional Loans: Some lenders allow as little as 3% down for qualified first-time buyers.
FHA Loans: These government-backed loans typically require just 3.5% down.
VA Loans: If you’re a veteran or active-duty military, you may qualify for a VA loan with 0% down.

Local Assistance Programs

San Diego County offers several programs to help first-time buyers with their down payment and closing costs. For example, the San Diego Housing Commission provides deferred-payment loans and grants to eligible buyers. These programs can bridge the gap if you’re struggling to save enough for a traditional down payment.

What Does That Look Like in Real Numbers?

Let’s say you’re buying a $700,000 home (around the median price in San Diego County):

3% down (conventional): $21,000
3.5% down (FHA): $24,500
0% down (VA): $0

Keep in mind, you’ll also need to budget for closing costs, which usually range from 2% to 5% of the purchase price.

Tips for Saving Your Down Payment

Set up a dedicated savings account for your home fund
Automate monthly transfers to build your savings steadily
Explore local and state down payment assistance programs
Work with a real estate agent who knows the ins and outs of first-time buyer incentives in San Diego County

Buying your first home might seem daunting, but with the right information and support, you’ll be unlocking the door to your new place before you know it!