How much can you put down on a San Diego conventional loan?

If you’re looking to buy a home in San Diego using a conventional mortgage, one key question is: “How much money do I need to put down for a down payment?” The amount you’ll need depends on your financial situation, the property price, and how comfortable you are with monthly costs and mortgage insurance.

Conventional Loan Down Payment Basics

For many conventional loans, it’s possible to put down as little as 3% of the purchase price — thanks to loan programs designed for first-time or moderate-income buyers.

That said, simply putting 3% down comes with tradeoffs. If you put down less than 20%, you’ll likely incur private mortgage insurance (PMI), which protects the lender — and that means extra monthly cost until you build up enough equity (usually until you reach ~20% equity in the home).

Some buyers choose to put down more — 10%, 15%, or even the traditional 20% — to reduce monthly mortgage payments, avoid PMI, and generally secure better loan terms. In pricier markets like San Diego, a larger down payment also helps manage monthly payments and interest over time.

 

What Down Payment Looks Like in San Diego

Because home prices in San Diego tend to be higher than many other parts of the U.S., the dollar-amount down payment even at 3% may still be substantial.

Even so, many conventional-loan borrowers in San Diego opt for a small down payment (3–5%) — often when they qualify under programs aimed at moderate-income or first-time buyers.

If a borrower can manage a larger down payment (10%–20%), that tends to help in avoiding extra costs (like PMI) and makes monthly payments more manageable long-term.

 

Buyers in San Diego working with Left Coast Leaders on a conventional mortgage have flexibility: you can put down as little as 3% to get started — but putting down more (10–20%) can lead to lower monthly payments and fewer ongoing costs. The “right” down payment depends on your financial situation, how long you plan to stay in the home, and how comfortable you are with PMI or higher monthly payments.

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Frequently Asked Questions

What is the minimum down payment for a conventional loan in San Diego?

Many conventional loans allow as little as 3% down, though exact requirements depend on the lender and loan program.

Do I need to put down 20%?

No. A 20% down payment is not mandatory; lower down payments are common. But putting down less than 20% usually means private mortgage insurance (PMI).

If I put down less than 20%, what happens?

You’ll likely need to pay PMI until you reach about 20% equity in the home.

Is 3% down realistic for San Diego homes?

It can be — although because home prices are high, 3% may still represent a substantial dollar amount.

What are the benefits of a bigger down payment (e.g., 10–20%)?

Larger down payments typically reduce monthly payments, avoid or reduce PMI, and may improve loan terms.

Does using a small down payment loan affect eligibility or costs?

Yes — smaller down payment loans may come with stricter underwriting, mortgage insurance, and higher monthly payments.

Should first-time buyers always aim for the minimum down payment?

Not necessarily — it depends on savings, monthly affordability, and long-term homeownership goals.

Does the property price in San Diego affect how much down payment I should make?

Yes — higher-priced properties mean larger down payment amounts, so a higher percentage down can offer more stability and lower relative monthly payments.

Can a down payment be gifted or borrowed?

Some conventional loan programs allow gifts for down payment or permit assistance programs — but this depends on lender guidelines.

Will I pay more in interest if I put down less in San Diego?

Likely yes — smaller down payments can mean higher interest rates or added costs like PMI, which increases total loan cost over time.