Securing an FHA home loan for your dream home in San Diego doesn't have to be a hassle, no matter what your budget is like or what kind of house you have in mind.
An FHA home loan will likely be the best home loan option for you.
This government loan program is simple to qualify for and is eligible for most San Diegans looking to purchase a single family residence or a condo.
With a down payment as low as 3.5% and competitive interest rates, home-buyers can save money while still making the dream of owning a home in San Diego an affordable reality.
Read more: Credit requirements FHA
FHA Loans in San Diego are a great option, but for borrowers who have higher credit scores in the 700s and lower debt to income ratios, a conventional loan with mortgage insurance might be a better option.
A buyer can get a conventional home loan with a 3% down payment, and have a lower monthly mortgage insurance payment.
With a conventional, the mortgage insurance payment can be removed once you achieve 20% equity.
The mortgage insurance on an FHA loan is on there for the life of the loan.
Read more: FHA vs. Conventional
FHA loan limits vary based on the number of living-units on the property and the county the property is located in. San Diego's current loan limit is
Update: The below loan limits are valid through 2021
These 1 to 4 unit properties can be purchased with an FHA loan as long as one of the units is owner occupied. Properties with over 4 units are considered commercial and do not quality for regular FHA loans.
These loan limits signify the max loan amount not purchase price. For example, the loan amount for a 1 unit in San Diego cannot exceed $701,500, after the FHA funding fee has been added, and the down payment deducted.