Table of Contents
- Step 1: Know what first-time buyer actually means
- Step 2: Understand what you can actually afford in San Diego
- Step 3: Get pre-approved before you do anything else
- Step 4: Explore down payment assistance programs
- Step 5: Find the right home in San Diego
- Step 6: Make a competitive offer
- Step 7: Navigate inspections, appraisal, and closing
- Frequently asked questions
Key Takeaways
- You are a first-time buyer if you have not owned a home in the past three years. Many repeat buyers qualify.
- San Diego County’s median home price is approaching $900,000. Down payment assistance programs can significantly reduce the cash you need at closing.
- CalHFA MyHome offers a deferred-payment junior loan for eligible first-time buyers based on a percentage of the purchase price. No monthly payments on the assistance — repayment is deferred until you sell or refinance.
- The SDHC Middle-Income Program offers deferred down payment and closing cost assistance for buyers in the City of San Diego earning between 80% and 150% of AMI. Verify current program amounts directly at sdhc.org.
- Military first-time buyers: the VA loan benefit offers significant upfront cost advantages and has no PMI. Eligible borrowers with full entitlement may be able to finance above local conforming loan limits, subject to lender underwriting and qualification requirements.
Buying your first home in San Diego feels overwhelming, and the price tags do not make it easier. But the process itself is more manageable than most first-time buyers expect, especially when you understand the programs available and know what to do in what order.
According to the California Association of REALTORS, the California statewide median home price reached a record high of $930,260 in May 2026. San Diego County consistently runs above the statewide median. That makes down payment assistance programs more important here than almost anywhere else in the state.
Step 1: Know What First-Time Buyer Actually Means
Most people assume first-time buyer means you have never owned a home in your life. It does not. The standard definition used by most programs (including CalHFA, SDHC, and the IRS) is that you have not owned a home as your primary residence in the past 3 years.
That means if you owned a home five years ago, sold it, and have been renting since, you qualify as a first-time buyer for most programs today. Divorced buyers who have not owned since the split may also qualify. Widowed spouses who co-owned a home may qualify under certain program rules.
Before you assume you do not qualify, check directly with the program or your lender. Eligibility is based on your specific income, purchase history, and the property location.
Step 2: Understand What You Can Actually Afford in San Diego
San Diego is expensive. That is not going to change. But affordable is relative, and the right question is not whether you can afford San Diego in the abstract. It is what specific price range makes sense for your income, your debts, and your down payment.
Lenders look at two key ratios when they evaluate what you can borrow:
- Front-end ratio: Your monthly housing costs as a percentage of your gross monthly income. Guidelines vary by lender and loan program.
- Back-end ratio (debt-to-income): Your total monthly debt obligations including housing, car payments, student loans, and credit cards as a percentage of your gross monthly income. Guidelines vary by lender and loan program. Verify current thresholds with your lender.
The cash needed at closing is the other major variable. Conventional and government loan programs have different upfront requirements depending on the loan type. The less you put down, the more you typically pay in mortgage insurance. VA loans have no mortgage insurance requirement.
This is exactly why pre-approval is the most important first step. A lender works through your actual numbers before you fall in love with a home you cannot qualify for.
Step 3: Get Pre-Approved Before You Do Anything Else
In San Diego’s housing market, a pre-approval letter is not optional. It is non-negotiable. Sellers and their agents strongly favor pre-approved buyers. Without a pre-approval letter, your offer is unlikely to be taken seriously in a competitive market.
Pre-approval is different from pre-qualification. Pre-qualification is a rough estimate based on self-reported information. Pre-approval involves actual document review (pay stubs, tax returns, bank statements, credit) and results in a letter that confirms a specific loan amount.
What a lender reviews during pre-approval:
- Your income (W-2 employment, self-employment, rental income, or other sources)
- Your monthly debts and obligations
- Your credit profile and score
- Your savings and assets for closing costs
- Any down payment assistance programs you may qualify for
With a complete file, pre-approval typically takes 24 to 48 hours. When you are ready, start the pre-qualification process here or call (619) 857-7191 directly.
Step 4: Explore Down Payment Assistance Programs
This is the section most first-time buyers in San Diego do not know about. It is the one that changes what is possible. Several state and local programs can significantly reduce the cash you need at closing.
CalHFA MyHome Assistance Program
The CalHFA MyHome Assistance Program offers a deferred-payment junior loan based on a percentage of the purchase price. The loan has no monthly payments. You repay it when you sell, refinance, or pay off the first mortgage. To qualify, you must be a first-time buyer, occupy the home as your primary residence, and meet CalHFA’s income limits for San Diego County. You must also complete a homebuyer education course before your loan can be submitted.
CalHFA Dream For All
Dream For All is CalHFA’s shared appreciation loan program offering assistance toward the purchase price with no monthly payments. When you sell or refinance, you repay the original amount plus a share of any appreciation. Program availability is limited and voucher rounds open and close periodically. Check calhfa.ca.gov for the most current availability and sign up for alerts to be notified when a new round opens.
SDHC First-Time Homebuyer Programs: City of San Diego
The San Diego Housing Commission (SDHC) offers two programs for buyers purchasing within the City of San Diego:
- Low-Income Program: For buyers earning no more than 80% of San Diego’s Area Median Income. Offers a deferred loan of up to 25% of the purchase price (not to exceed $150,000) plus up to $10,000 in closing cost assistance.
- Middle-Income Program: For buyers earning between 80% and 150% of AMI. Offers $40,000 in deferred down payment assistance plus $10,000 in closing cost assistance.
Both programs require homebuyer education and counseling before funds are committed. Properties must be located within the City of San Diego boundaries.
San Diego County DCCA Program
The County of San Diego’s Down Payment and Closing Cost Assistance (DCCA) Program offers deferred loans for eligible first-time buyers in unincorporated San Diego County and participating cities. The low-income tier (at or below 80% of AMI) offers loans of up to 17% of the purchase price. A separate moderate-income tier covers buyers up to 120% of AMI. Both tiers require homebuyer education and pre-purchase counseling. Verify current program terms and eligibility directly at sandiegocounty.gov or through an SDHC-approved lender.
Military First-Time Buyers: Your VA Loan Is the Strongest Option
If you are active duty, a veteran, or a qualifying surviving spouse, the VA loan benefit is more powerful than any down payment assistance program available in San Diego. The VA loan benefit offers significant upfront cost advantages for eligible buyers, has no PMI, and has no loan limit with full entitlement, subject to lender underwriting and qualification requirements. For a full breakdown, visit Maureen’s VA loan page.
Step 5: Find the Right Home in San Diego
With your pre-approval in hand and a clear picture of what you can afford, you are ready to start shopping. A few things to keep in mind as a first-time buyer in San Diego:
- Work with a local realtor: San Diego’s market moves quickly. A realtor who knows specific neighborhoods, typical offer timelines, and what sellers expect will save you from costly mistakes.
- Condos require extra homework: If you are considering a condo, check the VA approval status (if using a VA loan) and review the HOA’s financial health before making an offer. Not all condos qualify for all loan types.
- Know your must-haves vs. nice-to-haves: First-time buyers often look for the perfect home. In San Diego’s market, that approach can leave you sitting on the sidelines for months. Know which features you will not compromise on and which ones you can live without.
- Think about commute: San Diego traffic is real. A home that looks affordable in a far-out zip code may cost you two hours of daily commuting. Factor that into your decision.
Step 6: Make a Competitive Offer
San Diego has historically been a competitive market for buyers. Making a strong offer does not always mean offering the most money. It means removing uncertainty from the seller’s perspective.
What makes an offer stronger:
- A strong, verified pre-approval letter from a local lender
- A reasonable earnest money deposit. This signals commitment to the seller.
- A clean offer with as few contingencies as possible, while still protecting yourself
- A flexible close date. If the seller needs time to move, accommodating that can win you the deal.
- A personal letter. Not always appropriate, but in some situations it makes a difference.
Your realtor will guide the offer strategy. A strong pre-approval letter from a local lender is the foundation. No seller or listing agent should have reason to doubt your financing.
Step 7: Navigate Inspections, Appraisal, and Closing
Once your offer is accepted, you enter the contingency period. Here is what happens:
- Home inspection: You hire a licensed home inspector to evaluate the property’s condition. This is not required by lenders but is strongly recommended for every first-time buyer. The inspection report gives you a full picture of the home’s condition and may give you room to renegotiate.
- Appraisal: Your lender orders an appraisal to confirm the home’s market value supports the purchase price. If the appraisal comes in below the purchase price, you may need to renegotiate or make up the difference.
- Underwriting: Your complete loan file goes to underwriting for final approval. Respond quickly to any lender requests. Delays in underwriting are almost always caused by slow document responses from the buyer.
- Clear to close: Once underwriting issues final approval, you receive a clear to close. At least three days before closing, you will receive a Closing Disclosure outlining your final loan terms and all costs.
- Closing day: You sign the final documents, funds are transferred, and the title changes to your name. You get the keys.
From accepted offer to closing typically takes 21 to 45 days in San Diego depending on the loan type and how quickly both sides respond. Staying responsive to lender requests is the single biggest factor in keeping your timeline on track.
Ready to take your first step toward homeownership in San Diego?
Call or text Maureen Martin directly at (619) 857-7191.
Get pre-qualified in one conversation.
Frequently Asked Questions
1. What is the income limit for first-time buyer programs in San Diego?
It depends on the program. SDHC’s Low-Income Program requires income at or below 80% of AMI. The Middle-Income Program covers 80% to 150% of AMI. Verify current limits directly with the program or your lender before applying.
2. Can I use down payment assistance with a VA loan?
In most cases, the VA loan benefit already offers significant upfront cost advantages for eligible buyers, so traditional down payment assistance is not needed. However, some DPA programs can be used to cover closing costs. Ask your lender which combination works best for your situation.
3. How long does it take to buy a home in San Diego as a first-time buyer?
From pre-approval to closing, most first-time buyers spend 60 to 90 days. Maureen works to move quickly on complete applications, subject to receipt of required documentation and lender review. Closing typically takes 21 to 45 days after an accepted offer.
4. Do I need a large amount of cash to buy in San Diego?
Cash requirements vary significantly by loan type and program. Down payment assistance can further reduce the cash needed at closing. Talk to Maureen about which loan program fits your situation.
5. What credit score do I need to buy a home in San Diego?
Credit requirements vary by loan type and lender. FHA programs generally have more flexible credit standards than conventional loans. Ask your lender what steps you can take to strengthen your application before applying.
Maureen Martin
Maureen Martin is a San Diego mortgage broker with 26 years of experience specializing in VA loans and purchase loans. She is an independent broker affiliated with HomePlus Mortgage, serving military families and homebuyers across San Diego County.
NMLS# 247664
(619) 857-7191
Disclaimer: This content is for educational purposes only and does not constitute financial, legal, or mortgage advice. Loan eligibility, rates, terms, and program availability are subject to lender underwriting guidelines and may change without notice. All loans are subject to credit approval, income verification, and lender review.
Maureen Martin | CA DRE Lic. No. 01266511 | NMLS# 247664 HomePlus Mortgage | CA DRE Lic. No. 01021315 | NMLS# 78669
