FHA vs conventional 3 percent in San Diego
The full page lives at FHA loan San Diego.
Quick answer: Conventional 3% down only works when the loan is $832,750 or less in 2026. High-balance loans cannot go above 95% loan-to-value, so 3% down stops at about an $858,500 price. It also has to be a fixed-rate loan on a 1-unit primary home, and at least one borrower must be a first-time buyer (HomeReady drops that rule but caps income at 80% of area median). FHA 3.5% down needs a 580 credit score and runs up to the $1,104,000 San Diego County FHA limit.
Buyers hear 3% and assume conventional is automatically cheaper than FHA. Sometimes. Sometimes not. FHA uses typical 3.5% down and FHA mortgage insurance. Conventional 3% programs exist, with income, occupancy, and credit rules that have to fit. I will not publish a rate here to pretend I already ran your file.
What each program actually is
| FHA | Conventional 3% | |
|---|---|---|
| Typical down | 3.5% | 3% if you qualify for that program type |
| Occupancy | Primary residence | Usually primary residence on 3% programs |
| Condo | Project has to be FHA-eligible | Project still has to be warrantable for conventional |
| Mortgage insurance | FHA MIP on the FHA file | PMI on the conventional file, with different rules |
| Largest loan at minimum down (2026, 1-unit) | $1,104,000 San Diego County FHA limit | $832,750 baseline. High-balance loans max out at 95% LTV |
| Who qualifies at minimum down | 580 credit score for 3.5% down. 500 to 579 needs 10% down | Fixed rate, 1-unit primary. At least one first-time buyer, or HomeReady with income at or under 80% of area median |
We compare the monthly number with taxes, insurance, and HOA, not a down-payment headline. See FHA loan San Diego for the FHA path. Conventional 3% is a program type, not a rate I invent on this page.
The $858,500 line in San Diego
Divide $832,750 by 0.97 and you get about $858,505. That is the highest price where 3% down keeps the loan at the baseline limit.
- $850,000 home: 3% down is $25,500. Loan is $824,500. Conventional 3% can work.
- $875,000 home: 3% down would make the loan $848,750. That is high-balance, and high-balance caps at 95% LTV. Conventional needs at least 5% down, $43,750.
- Same $875,000 home on FHA: 3.5% down is $30,625, and the base loan of $844,375 sits well under the $1,104,000 FHA limit.
So in a lot of San Diego neighborhoods the real choice is FHA 3.5% vs conventional 5%, not 3% vs 3.5%. Run both on cash to close and the monthly number. Payment pieces: PMI vs MIP.
Loan amount still decides the bucket
The 2026 San Diego County 1-unit high-cost conforming line is $1,104,000. Baseline is $832,750. Conventional above $1,104,000 is generally jumbo. FHA uses FHA's county table. Confirm on loan limits. If the loan amount is jumbo, see jumbo loan San Diego. VA with full entitlement is a different path: VA loan San Diego.
Start the comparison on a real file at get pre-approved San Diego. Left Coast Leaders, Inc. NMLS 2394495. Amir Nurani NMLS 197458. Call (619) 366-9494.
Frequently asked questions
About $858,500 in 2026. Above that, a 3% down loan would pass the $832,750 baseline limit, and high-balance loans cannot go above 95% loan-to-value.
On Fannie Mae standard 97% loans, at least one borrower must be a first-time buyer, meaning no ownership of a home in the past three years. HomeReady has no first-time rule but caps income at 80% of area median.
580 or higher for 3.5% down under HUD rules. A score from 500 to 579 limits FHA to 90% loan-to-value, so 10% down.
No. Conventional 3% exists as a program type if you qualify. FHA typical down is 3.5%. Mortgage insurance, credit, condo rules, and cash to close decide the file. We do not invent rates here.
No. This page is program structure. Call (619) 366-9494 for a number on your credit, occupancy, and loan amount.
Only if the project is FHA-eligible and you fit the rest of the file. A house does not need an FHA condo list check the same way.
Conventional above the 2026 1-unit high-cost line is generally jumbo. FHA uses its own county table. We check both on the file.
Want FHA and conventional 3% run on the same file?
Send the price and documents. We will tell you if 3% down conventional even fits that loan amount, then compare cash to close and the monthly number side by side.
Get Pre-Approved(619) 366-9494 · Amir Nurani · NMLS #197458
Left Coast Leaders, Inc. · NMLS #2394495 · DRE #02191517 · Equal Housing Lender · San Diego County and Riverside County · San Diego, CA