FHA Loans · San Diego County · 2026
FHA loans in San Diego with 3.5% down, explained in plain numbers
2026 San Diego County loan limits, mortgage insurance, down payment help and the FHA streamline refinance, from a San Diego lender that shops multiple lenders.
(858) 775-1005
Talk to Steven Hyde · NMLS #391380
By Steven Hyde, Founder, Hyde Funding · NMLS #391380 · Reviewed November 2, 2026. Hyde Funding is a mortgage lender headquartered at 8996 Miramar Rd., Suite 250, San Diego, founded in 2015, that shops multiple lenders for each file.
Short answer: In 2026 the FHA loan limit for a one-unit home in San Diego County is $1,104,000 (HUD, effective January 1, 2026). With a credit score of 580 or higher you can put 3.5% down; scores from 500 to 579 need 10% down. FHA loans carry an upfront mortgage insurance premium of 1.75%, which is usually financed, plus an annual premium paid monthly. Down payment help from the San Diego Housing Commission and the County can sometimes be layered on top. Already have an FHA loan? An FHA streamline refinance can lower your rate with less paperwork.
HUD sets FHA limits county by county. San Diego County (the San Diego-Chula Vista-Carlsbad metro area) is a high-cost area, so its limits sit well above the national floor. These are the 2026 limits from HUD’s FHA mortgage limits lookup, effective January 1, 2026:
| Property type | San Diego County 2026 FHA limit |
|---|---|
| 1 unit (house, condo, townhome) | $1,104,000 |
| 2 units (duplex) | $1,413,350 |
| 3 units (triplex) | $1,708,400 |
| 4 units (fourplex) | $2,123,100 |
For comparison, HUD’s 2026 national one-unit floor is $541,287 and the high-cost ceiling is $1,249,125 (HUD Mortgagee Letter 2025-23). The limit applies to the base loan amount, before the financed upfront premium. Buying above the limit? A larger down payment, a conventional loan or a jumbo loan may fit, and I can price those side by side.
| Decision credit score | Minimum down payment | Maximum LTV |
|---|---|---|
| 580 or higher | 3.5% | 96.5% |
| 500–579 | 10% | 90% |
The down payment can come from savings, a documented gift from a family member or other allowed donor, or an approved down payment assistance program. Sellers can also contribute toward closing costs within FHA limits.
Example (arithmetic only, not a rate quote): On a $700,000 purchase with 3.5% down, the down payment is $24,500 and the base loan is $675,500. The 1.75% upfront premium is $11,821.25, so the financed loan is $687,321.25. Because the base loan is under $726,200 and the LTV is above 95%, the annual premium is 0.55%, about $315 a month in the first year. On a $900,000 purchase with 3.5% down, the base loan is $868,500, the upfront premium is $15,198.75, and the annual premium is 0.75%, about $552 a month in the first year. Your rate, payment and costs depend on your file and the market. Steven Hyde, NMLS #391380.
Every FHA loan has two mortgage insurance premiums: an upfront premium of 1.75% of the base loan, and an annual premium divided into your monthly payment. For loans with terms longer than 15 years, HUD’s current annual rates (Mortgagee Letter 2023-05) are:
| Base loan amount | LTV 95% or less | LTV above 95% |
|---|---|---|
| Up to $726,200 | 0.50% | 0.55% |
| Above $726,200 | 0.70% | 0.75% |
How long you pay it: if you put at least 10% down (LTV of 90% or less), the annual premium ends after 11 years. With less than 10% down it lasts for the life of the loan. Many San Diego owners later refinance from FHA to a conventional loan once they have about 20% equity, which removes FHA mortgage insurance. Because many San Diego prices push the base loan above $726,200, it is worth looking at the premium tier before you choose a price range.
FHA loans are for homes you will live in as your primary residence. Investment-only purchases need a different program, such as a DSCR loan.
Hyde Funding welcomes every credit profile. Because I shop multiple lenders, I can look for one whose guidelines fit your file instead of forcing your file into one lender’s box. If your credit needs significant work before you buy, I can refer you to a trusted credit repair partner and map out what to work on, so you have a plan rather than a no. Call (858) 775-1005 and we will look at where you stand today.
The San Diego Housing Commission (SDHC) runs first-time homebuyer programs for the City of San Diego, the County of San Diego and the City of Chula Vista. Program terms change, so confirm them on SDHC’s first-time homebuyer page or by calling SDHC at (619) 578-7788. As published by SDHC and checked November 2, 2026:
| Program | Who it serves | Help available | Max purchase price |
|---|---|---|---|
| City of San Diego, low-income | Up to 80% of area median income, home in the City of San Diego | Deferred loan up to 17% of the price (max $125,000) at 3% simple interest, payments deferred 30 years, plus a closing cost grant of 4% up to $10,000 | $883,025 |
| City of San Diego, middle-income | 80%–150% of area median income | $40,000 deferred loan at 4% simple interest plus a $10,000 closing cost grant | $1,250,000 |
| County of San Diego, low-income | Up to 80% of area median income, homes in eligible County areas | Deferred loan up to 22% of the price plus closing cost help of 4% up to $10,000 | $743,000 |
| County of San Diego, moderate-income | 80%–120% of area median income | Deferred loan up to 17% of the price | See SDHC |
| City of Chula Vista | Income-qualified buyers in Chula Vista | Deferred loan up to 22% of the price (max $120,000) | $807,500 |
What these programs generally require: you are a first-time buyer, you complete a homebuyer education course, you put in a minimum contribution of your own (3% for the City low-income program), and the first mortgage is a fixed-rate loan. SDHC only accepts applications submitted by a loan officer on its current Participating Lender list, so ask me first whether Hyde Funding can submit your file before you count on SDHC funds. Either way, I will show you how an FHA loan compares with and without assistance so you can decide.
If you already have an FHA loan, an FHA streamline refinance can lower your rate with less documentation than a full refinance. The main HUD rules (HUD Handbook 4000.1):
Need cash out instead? Compare an FHA cash-out refinance, a conventional cash-out, or, if you are a veteran, a VA cash-out refinance.
| FHA | VA | Conventional | |
|---|---|---|---|
| Minimum down | 3.5% (580+) | $0 for eligible borrowers | 3% on some programs |
| Mortgage insurance | Upfront 1.75% plus annual MIP | No monthly MI; VA funding fee unless exempt | Monthly PMI under 20% down, removable |
| 2026 San Diego 1-unit limit | $1,104,000 | No VA limit with full entitlement | $1,104,000 high-balance |
| Credit flexibility | Scores from 500 | Lender guidelines | Lender guidelines |
If you are a veteran or service member, compare both: see VA loans in San Diego and the VA IRRRL. Conventional details are on our conventional loans page.
Hyde Funding is a San Diego mortgage lender founded in 2015 that shops multiple lenders. For an FHA loan that means I price your scenario with more than one lender, compare the rate, credits and overlays (extra rules some lenders add on top of FHA), and show you the options. You work with me directly from preapproval to closing, from our office on Miramar Road or by phone and video anywhere in San Diego County.
$1,104,000 for one unit, $1,413,350 for two units, $1,708,400 for three units and $2,123,100 for four units, effective January 1, 2026, per HUD.
3.5% of the price with a credit score of 580 or higher, or 10% with a score from 500 to 579. Gifts and approved down payment assistance can cover the down payment.
HUD allows scores from 500, with 10% down below 580. Hyde Funding welcomes every credit profile, and if your credit needs significant work we can refer you to a trusted credit repair partner.
The upfront premium is 1.75% of the base loan, usually financed. The annual premium for terms over 15 years is 0.50% to 0.55% for base loans up to $726,200 and 0.70% to 0.75% above that, depending on LTV.
With 10% or more down, the annual premium ends after 11 years. With less down it lasts for the life of the loan, but you can refinance into a conventional loan once you have enough equity.
SDHC programs require a fixed-rate first mortgage, homebuyer education and an application submitted by a lender on SDHC’s current Participating Lender list. Ask whether Hyde Funding can submit your file before you count on SDHC funds.
Yes, if the project is on HUD’s FHA-approved condominium list. In some cases a single unit in a non-approved project can be approved on its own.
Yes, if you live in one of the units. The 2026 San Diego County limits are $1,413,350 for two units, $1,708,400 for three and $2,123,100 for four.
A refinance of an existing FHA loan into a new FHA loan with reduced documentation. You need at least 210 days since closing and six payments made, and the new loan must give a net tangible benefit, such as a combined rate drop of at least 0.5 point on a fixed-to-fixed refinance.
Compare both. VA loans allow $0 down with no monthly mortgage insurance for eligible borrowers, while FHA can fit if you want to save your VA entitlement. I can price both for the same home.
Rates change daily and depend on your credit, down payment and loan amount. Call (858) 775-1005 for today’s rates.
Start the secure online application at hyde.my1003app.com/391380/register, or call (858) 775-1005 to talk first.
Start your FHA application or call (858) 775-1005. Hyde Funding, 8996 Miramar Rd., Suite 250, San Diego, CA 92126. NMLS #391380.
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Hyde Funding is a mortgage lender that shops multiple lenders. Hyde Funding is not affiliated with HUD, FHA, the VA, the San Diego Housing Commission or any government agency. Examples are arithmetic only and are not rate quotes. Rates, program terms and assistance funding change; all loans are subject to credit approval and property eligibility. This is general information, not a commitment to lend.