Budgeting

How Much Do You Need to
Buy a Home in San Diego?

Real numbers — down payment, closing costs, and reserves broken down for every loan type in 2025

This is the #1 question first-time buyers ask — and the answer is almost always better than people expect. Here's exactly what you need depending on your loan type, with real San Diego numbers.

The Three Cost Categories

1. Down Payment

The upfront percentage of the purchase price you pay at closing. This ranges from 0% (VA) to 20%+ (conventional) depending on your loan.

2. Closing Costs

Lender fees, title insurance, escrow fees, prepaid property taxes and insurance. In San Diego, these typically run 1.5%–3% of the purchase price. Sellers can contribute up to 4–6% toward your closing costs depending on the loan type.

3. Reserves

Most lenders want to see 2–3 months of mortgage payments in savings after closing. This doesn't get spent — it just needs to be in your account.

Real Numbers by Loan Type — $650,000 Home in San Diego

Loan TypeDown PaymentClosing CostsTotal Needed
VA Loan$0$8,000–$12,000 (seller can pay)$0–$12,000
FHA (3.5%)$22,750$9,750–$13,000$32,500–$35,750
Conventional (5%)$32,500$9,750–$13,000$42,250–$45,500
Conventional (10%)$65,000$9,750–$13,000$74,750–$78,000
Conventional (20%)$130,000$9,750–$13,000$139,750–$143,000
Key insight: VA buyers can potentially buy a $650,000 home in San Diego with near-zero out of pocket if the seller pays closing costs. This is a realistic scenario in today's market — and our team negotiates this regularly.

How to Reduce What You Need Out of Pocket

What About Monthly Payments?

On a $650,000 home with a 7% interest rate (approximate 2025 rate):

Add property taxes (~1.2% of value = ~$650/mo) and homeowner's insurance (~$100–$150/mo) for total housing payment.

Find Out Exactly What You Need

Every buyer's situation is different. Let us run the real numbers for your target price, income, and credit score — free, no obligation.

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