San Diego 3.5% Down FHA Home Loan (Updated Numbers and Details for 2022 | 2023)

(Please note - these numbers below have been updated for 2022 and are specifically for San Diego however we can do loans throughout California. We do our best to make sure everything is correct at the time you are reading it.)

✍️ In this post I break down the ins and outs of the 3.5% down FHA Loan in San Diego.

✍️ This mortgage loan is great for anyone that wants to put down as little as 3.5%, get a loan amount up to $879,750 and take advantage of record low interest rates

In this post I cover:


Here's the main points and highlights of the program... 

(Please keep in mind I am approved with 40 +/- wholesale lenders in the state of California and each lender will have different FHA home loan requirements. Things like credit scores, months reserves, DTI's, etc can vary from lender to lender and the below are used for examples.)

✍️ You do *not* need to be a first time home buyer - you can have never owned before and/or never owned anything ever.

✍️ This will work for anyone looking to *live* in the home as their primary residence (does not work on second home, vacation home, or investment properties).

✍️ This works on any livable home, PUD (planned urban development), town home/condo (that is an FHA approved complex), and livable 2 unit, 3 unit, and 4 unit properties. I do not personally deal with land, mobile, or manufactured homes.

✍️ The minimum down payment needed is just 3.5% of the purchase price. Just take your purchase price x 0.035 = your needed down payment needed. 

Here's a few down payment needed examples:

➡️ $300,000 x 0.035 = $10,500

➡️ $400,000 x 0.035 = $14,000

➡️ $500,000 x 0.035 = $17,500

➡️ $600,000 x 0.035 = $21,000

➡️ $700,000 x 0.035 = $24,500

➡️ $750,000 x 0.035 = $26,250

➡️ $800,000 x 0.035 = $28,000

➡️ $850,000 x 0.035 = $29,750

➡️ $911,000 x 0.035 = $31,885 (Please note: This is about the maximum SALES PRICE you can do at 3.5% down, with a max $879,750 loan amount).

The maximum loan amount in San Diego are as follows:

➡️ Max loan amount for a 1 unit is $879,750

➡️ Max loan amount for a 2 unit is $1,126,250

➡️ Max loan amount for  3 unit is $1,361,350

➡️ Max loan amount for a 4 unit is $1,691,850

✍️ The maximum debt to income ratio allowed is 46.99%/56.99% - that means up to 46.99% of your debt can be towards a total housing payment and up to 56.99% of your debt can go towards your total housing payment plus debts.

✍️ This loan works for for anyone that has a full time job or business for at least 2 years or longer (It's not just limited to first time home buyers, those with limited income, or those with less than perfect credit.)

✍️ The down payment and closing cost monies can 100% come as a gift from parents or another relative, an employer, an approved charity group, or a government home buyer program.

✍️ Being approved with over 40 different wholesale lenders I have a variety of FHA lenders that require different credit score minimums. But, I have lenders that will go down to a 550 minimum credit score.

The waiting periods for the FHA loan are as follows:

➡️ 2 years from Chapter 7 discharge date

➡️ 3 years if you have a foreclosure

➡️ 3 years if you have a short sale


Let's dive into some typical questions and answers... 

(Please keep in mind your personal situation might be different and these are used as examples only).

 Question 1: Can I use the FHA loan in conjunction with your down payment assistance program?

Yes, 100% - that's how it is done. There's a small loan for your 3.5% down payment, you have a 96.5% FHA loan, and together that = 100% financing. You can learn more about the DPA program here

 Question 2: If I have had an FHA loan before - can I get one again?

Yes, of course. You can have 1 at a time (usually) but you can buy and sell using an FHA loan as much as you want.

❓ Question 3: Why would I go with an FHA loan over a conventional loan?

Generally speaking the FHA loan allows for a higher DTI ratio, lower credit score, lower down payment needed above the conforming limits, and overall easier to get as a buyer.

 Question 4: Okay, you have mentioned the positives - what are some negatives?

I would say some of the negatives versus a conventional loan are: the UFMIP, having it mandatory to buy an FHA approved condo/town home complex, and owner occupied homes only.

❓ Question 5: If I have just enough for the down payment - is there a way I can get my closing costs covered?

Yes, we can ask the seller to pay for them in our offer, we can use a lender rebate (video covers), or we can use a combination of the both to limit cash out of pocket.


Here's 5 secrets of this loan (or misconceptions) you might not be aware of... 

(Please keep in mind your personal situation might be different and these are used as examples only).

➡️ Secret #1: Down payments needed aren't 20%

The minimum down payment needed for an fha loan up to a $879,750 loan amount is 3.5%.

➡️ Secret #2: Even if you have had a short sale, foreclosure, bankrupcty, etc in the past you can use again. 

If you have had a short sale you will need to wait just 3 years, 2 years from discharge date on a chapter 7, and 3 years on a foreclosure. 

➡️ Secret #3: You (might not) need cash out of your own pocket for closing costs

If you are buying using an fha loan we can always ask the seller to pay some/all of your closing costs and/or we can use a lender rebate to cover some/all. 

If you are refinancing we can roll them into the loan amount and/or use a lender rebate. 

Both options limit your cash out of pocket. 

➡️ Secret #4: These loans look bad when presented to a seller. 

Not (necessarily) true. If you have a full lender approval (versus just a generic pre-approval), use a buyers agent/lender that presents a great offer package, are buying a townhome/condo in an FHA approved complex, etc - there shouldn't be much difference between an FHA or conventional offer. There's *much more* to an offer than just what type of loan and down payment.

➡️ Secret #5: These loans can be closed in 21 days or less

Gone are the days where an fha loan can take up to 45 days. All of the lenders I use can close a loan in 30, 25, 21, and even 15 days or less. This is vital in todays market when over 30% of all San Diego transactions are by cash, and a huge percent are done by buyers with 20% or more they are putting down. 


Here's the (potential) cash out of pocket you can expect... 

(Please note this can vary from borrower to borrower so this is just some helpful guidelines: Your own deposit, home inspections, and home appraisal may vary).

➡️ Deposit - You should count on putting between 1% to 3% of your sales price - as your deposit into escrow - within 3 days of your offer being accepted. This is totally negotiable between the buyer (you) and the seller. I have helped clients with as little as $500 into escrow. But, keep in mind with the low inventory in San Diego, and lots of offers on each property, that's not a likely scenario. 

➡️ Home Inspection - You *should* use a licensed home inspector to check out the property to understand the kind of shape it's in. Do you HAVE to? No, just highly recommended. Depending on if it's a home or townhome/condo it will be somewhere around $250-$750 +/-. 

Keep in mind - you can choose to inspection anything you want. The roof, septic, plumbing, electrical, pool, spa, foundation, etc. There are no limits to what you can inspect.  

➡️ Home Appraisal - You will need to get a home appraisal on the property since you are getting financing. You pay this directly to the appraiser. This has nothing to do with the buyers agent (me), the listing agent, the seller, the lender, etc. This will be around $600 +/-. 

➡️ Down Payment - Within a few days of closing escrow you will be wiring in the rest of your needed down payment. Your down payment consists of whatever deposit was already wired into escrow + what's needed to close for rest of down payment, closing costs, and escrow impounds. 

✔️ My offer to you: If you use my services for the real estate and loan I will refund back after the close of escrow (aka after checks are sent out) whatever you spent on your home inspection and appraisal as my way of saying "thank you" for utilizing my services. 


Basic documentation needed from you (or you and co borrower) to begin... 

(Please keep in mind these are the basic documents we will probably need. Depending on your personal situation we may need more or less and will advise accordingly). 

✔️ Copy of your drivers license (screen shot is fine)

✔️ Copy of your social security card (screen shot is fine)

✔️ Last 30 days paychecks (you should get these from your employer via email and PDF each time you are paid). 

✔️ Last 2 months bank statements - all pages (You just log into wherever you have a bank acount online and save the last 2 months via PDF.)

✔️ Last 2 years taxes and W2's - If you do not have them you can get them from the IRS website here

✔️ Latest statements if you have anything like: 401(k), retirement, stocks, bonds, mutual funds, etc

✔️ If you are self employed we will need last 2 years taxes and W2's (if applicable) as well as year to date profit and loss sign and dated (you can do this - doesn't need to be a CPA). 

✔️ We can potentially need more depending on this like: pay or collect child support, have been divorced, have had a short sale or foreclosure, have filed bankrupcty, have rental properties, etc. 


Here's your steps to begin right now... 

  1. Fill out my online application at Scotts Loan App.com. If it's just you - then you fill it out just for yourself. If you are married - it's you and your spouse (regardless if they work or not, their income, their credit, etc.) If its you and a co borrower - then you both fill it out.

  2. Once complete I will be alerted, check everything over, send you out a list of needed supporting documents, and clarify anything if needed

  3. Once I get the needed supporting documents from you I will double check th application, your needed supporting documents, pull your credit report (it's currently $38 +/- and I pay for that), and get back to you with best scenarios.

  4. If an fha loan doesn't work for whatever reason we can always look at going with another loan program that's better suited for your needs. 


☎ I would love to help assist you with your fha loan - please feel free to give me a call, text, or use the form below. 

Your FHA Loan Insider,

Scott

Get Scott's Personal Help Below...


This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Where Do You Want To Go Next?

By clicking “Send” I/We agree by electronic signature as stated below: 1) To be contacted by telephone even if the telephone number appears on a State/National Do Not Call registry or any company’s Do Not Contact lists. 2) To this website’s Privacy Policy and Terms of Use.

See Our Top Blog Posts Below...

See San Diego's Newest Listings Below...

4450 Properties
Page 1 of 124
3
Beds
1F11/2
Baths
1,020
Sq.Ft.
1974
Year Built
1
Day on Site
305484153
MLS
Make this attractive condo your own - at a great price!! Bring your offers to this wonderful 3-bedroom 1.5 bath Two-Story Townhome in the highly coveted Oak Park neighborhood of San Diego! You can...
2
Beds
2
Baths
862
Sq.Ft.
1987
Year Built
1
Day on Site
305484855
MLS
Coming to the market very soon! First level 2 bedroom 2 in-suite bathrooms in the quiet community of Sweetwater views.

Coming to the market very soon! First level 2 bedroom 2 in-suite...
4
Beds
3
Baths
1,452
Sq.Ft.
1960
Year Built
1
Day on Site
305488113
MLS
Country Setting Charming home close to everything! 3 bedrooms in the main house with 2 full baths and an Accessory Dwelling Unit with one full bed and bath on over 1/2 acre lot. This home has been...
3
Beds
2
Baths
1,865
Sq.Ft.
1977
Year Built
1
Day on Site
305489303
MLS
Don't miss out on this quintessential Fallbrook single story ranch style home! This home has never been on the market before and has been meticulously maintained by one owner. Kitchen opens up to the...
$550,000
Neighborhood: Gaslamp
1
Beds
1
Baths
807
Sq.Ft.
2006
Year Built
1
Day on Site
305357556
MLS
There Is A Place In Downtown San Diego That Has That Sought After Urban Vibe And You Can Find It In The Historic Gaslamp Square. Amazing Opportunity To Purchase A Unit At The Chic Gaslamp City Square...
$789,900
Neighborhood: Escondido
3
Beds
2
Baths
1,400
Sq.Ft.
1975
Year Built
1
Day on Site
220017063
MLS
This property features three bedrooms and two bathrooms with 1400 square feet, an open floor plan, and an upgraded kitchen-perfect space to enjoy outdoor and indoor living. The curb appeal is...
3
Beds
2F11/2
Baths
1,511
Sq.Ft.
1979
Year Built
1
Day on Site
305489442
MLS
Welcome 1064 Sage Vw! A spacious, and beautifully upgraded home tucked in a private community in East Chula Vista. Inside you will find a cohesive open floor plan, beautiful flooring throughout the...
Coming Soon on 07/05
804 Toulon Ct San Diego, CA 92109
$2,185,000
Neighborhood: Mission Beach
2
Beds
2
Baths
1,305
Sq.Ft.
1995
Year Built
1
Day on Site
220017065
MLS
Rarely available beautiful Beach Cottage on oversized lot. Perfectly located steps to the Bay and Beach. This is the perfect location near Restaurants, Grocery Store, Night Life and Catamaran Resort....
Coming Soon on 07/05
5761 Cape Jewels Trail San Diego, CA 92130
$2,299,000
Neighborhood: Pacific Highlands Ranch
5
Beds
3
Baths
2,453
Sq.Ft.
2006
Year Built
1
Day on Site
220017066
MLS
This is the PHR family home you have been searching for! Walking distance to TOP RATED Solana Ranch Elementary K-6, Pacific Trails MS, CCA and Cathedral Catholic, in one of the BEST neighborhoods in...
$1,025,000
Neighborhood: Ocean View Hills
4
Beds
3
Baths
2,881
Sq.Ft.
2004
Year Built
1
Day on Site
305489459
MLS
GORGEOUS UPGRADED HOME IN THE SEAGATE DEVELOPMENT OF OCEAN VIEW HILLS. BEDROOM & FULL BATHROOM DOWNSTAIRS. HARDWOOD FLOORING, 2 A/C UNITS, SECURITY SYSTEM, NEWER PATIO COVER, STAMPED CONCRETE, FAMILY...
2
Beds
2F11/2
Baths
1,202
Sq.Ft.
2002
Year Built
1
Day on Site
220017069
MLS
Lovely bright END UNIT in desirable complex. One of the very few true end units that has 4 more windows than the majority ones in this complex. Gorgeous open floor plan with lovely kitchen featuring...
$1,995,000
Neighborhood: La Costa Greens
4
Beds
4
Baths
2,838
Sq.Ft.
2006
Year Built
1
Day on Site
305480211
MLS
Never before on the Market! Luxury "Coastal Retreat" with premium panoramic canyon, golf course & ocean views in popular La Costa Greens. Awesome floorplan with 4 Bedrooms + Loft. 3 Bedrooms & loft...
$799,000
Neighborhood: Casa De Oro
3
Beds
2
Baths
1,560
Sq.Ft.
1979
Year Built
1
Day on Site
220017071
MLS
Beautifully upgraded 3 bed 2 bathroom home with stunning views of Mount Helix! This home features gorgeous upgrades throughout the space including a beautiful gourmet kitchen, upgraded flooring, a...
$373,000
Neighborhood: San Carlos
1
Beds
1
Baths
610
Sq.Ft.
1975
Year Built
1
Day on Site
305489495
MLS
Light and bright bottom floor condominium unit located within the highly desirable community of Casa Dorada in San Carlos. Situated in an excellent location super close to restaurants, grocery...
3
Beds
3
Baths
1,260
Sq.Ft.
1960
Year Built
1
Day on Site
305489498
MLS
Fully renovated Bay Park home with stunning views from the deck out of the living room! This absolutely stunning 3 bedroom, 3 bath Home is completely renovated, 2 bedrooms on main level and 1 bedroom...
3
Beds
2F11/2
Baths
1,203
Sq.Ft.
1996
Year Built
1
Day on Site
305489500
MLS
Enjoy this 3-bed townhome in the highly desired Mission Creek Community! This is a two-story townhome with no neighbors above or below. Newly remolded master bathroom and the guest bath downstairs....
Coming Soon on 07/07
12590 Carmel Creek Rd #4 San Diego, CA 92130
$859,000
Neighborhood: Carmel Valley
2
Beds
2
Baths
950
Sq.Ft.
1990
Year Built
1
Day on Site
220017072
MLS
Rare opportunity in Del Mar Villas. Upstairs unit close to tennis courts. Unit comes with covered parking space. Complex includes: pool, spa, tennis courts, picnic tables, BBQ & fitness center....
5
Beds
2
Baths
1,836
Sq.Ft.
1966
Year Built
1
Day on Site
305489506
MLS
Welcome Home! This absolutely stunning 5 bedroom, 2 bath Home is completely renovated. It features a remodeled Kitchen with New Cabinets, Quartz counter-tops, Waterfall Island, designer laminate...
$649,000
Neighborhood: Parkwood
2
Beds
2
Baths
1,054
Sq.Ft.
1987
Year Built
1
Day on Site
220017073
MLS
Attractive 2 bedroom 2 bath home located in the heart of Escondido. As you enter your new home, you will notice the vaulted ceilings & open space filled with an abundance of natural light. Dual paned...
Coming Soon on 07/09
11242 Timbergate Cir San Diego, CA 92128
$1,250,000
Neighborhood: Carmel Mountain
4
Beds
3
Baths
1,646
Sq.Ft.
1986
Year Built
1
Day on Site
220017074
MLS
Beautifully updated & upgraded home in Carmel Mountain Ranch. Wood plank tile through out downstairs w/soaring vaulted ceilings, newer fireplace tile/mantle, newer dual-pane windows, stainless steel...
Coming Soon on 07/06
11585 Cypress Canyon Park Dr San Diego, CA 92131
$1,575,000
Neighborhood: La Merida
4
Beds
3
Baths
2,395
Sq.Ft.
1998
Year Built
1
Day on Site
220017075
MLS
This exquisite home is located on a highly coveted canyon with wonderful canyon and mountain views in a highly desirable area in Scripps Ranch. 4 bedrooms, 3 full baths completely designer upgraded,...
Open 7/10
2424 Evergreen St San Diego, CA 92106
$2,575,000
Neighborhood: Loma Portal
4
Beds
2F11/2
Baths
2,310
Sq.Ft.
1938
Year Built
1
Day on Site
220017076
MLS
Beautiful well-maintained contemporary California-Spanish-style home on 10,000sf cul-de-sac canyon lot. This is a view home with balcony, patio and window panoramic views of the city and Coronado...
2
Beds
1
Baths
831
Sq.Ft.
1949
Year Built
1
Day on Site
305489538
MLS
Fixer in Vista - .34 acre lot - Sold as is - Cash Only - will not qualify for conventional financing - original sf was 831 but property has been added to over the years (permits unknown) - great...
$1,350,000
Neighborhood: Hidden Meadows Estates
5
Beds
4
Baths
3,646
Sq.Ft.
2003
Year Built
1
Day on Site
305489546
MLS
Fabulous kitchen: Quartzite countertops, 60 inch Wolf range, Wolf microwave drawer, Full-size Sub Zero freezer & refrigerator with ice maker, Sub Zero wine fridge with two drawers, Instant hot water...
3
Beds
2
Baths
1,620
Sq.Ft.
1976
Year Built
1
Day on Site
305489550
MLS
West end property on over 1.5 acres of land. As you enter through the rolling gate you are greeted by a custom water feature, a Stagecoach and a decorative horse. The property is fully fenced and...
3
Beds
2
Baths
1,166
Sq.Ft.
1988
Year Built
1
Day on Site
305489562
MLS
TURNKEY CONDO READY TO MOVE IN! VA AND FHA APPROVED COMPLEX! THIS REMODELED CONDO IS LOCATED ON GROUND FLOOR AND HAS ALL NEW PAINT, CARPETS, MIRROWED CLOSET DOORS, REMODELED KITCHEN WITH STAINLESS...
$1,599,000
Neighborhood: Dehesa
6
Beds
3F11/2
Baths
3,500
Sq.Ft.
1982
Year Built
1
Day on Site
220017078
MLS
Beautiful single story ranch style home that's ready to move in and enjoy. It has 5 bedrooms, 3.5 bathrooms, plus a 14'x14' office (not on tax rolls). There's a large patio area with pool/hot tub,...
$1,600,000
Neighborhood: West La Mesa
7,331
Sq.Ft.
1
Day on Site
305489621
MLS
Five 2 bedroom 1.75 Bath units in La Mesa.

Five 2 bedroom 1.75 Bath units in La Mesa.
4
Beds
2
Baths
1,441
Sq.Ft.
1986
Year Built
2
Days on Site
305447928
MLS
REDUCED PRICE NEW UPDATES/UPGRADES!! MOVE IN READY FAMILY HOME, only 10mins from the Beach, in the beautiful Regency Hills Neighborhood of Oceanside!! COME SEE AGAIN!! Enjoy the constant ocean breeze...
Coming Soon on 07/14
3947 Arey San Diego, CA 92154
$699,000
Neighborhood: Fortune Park
4
Beds
2
Baths
1,529
Sq.Ft.
1968
Year Built
2
Days on Site
220017042
MLS
Welcome HOME! This South San Diego ONE-Story home has a beautiful open floor plan perfect for any size family! Interior features an open floor plan with large living room and a spacious family room!...
2
Beds
1
Baths
827
Sq.Ft.
1978
Year Built
2
Days on Site
305489241
MLS
Twin home in the city of Oceanside positioned within the Carlsbad Unified School District. This property offers two bedrooms, one full bath, with new cabinetry in the kitchen and bathroom, complete...
Coming Soon on 07/16
3443 Adams Street Carlsbad, CA 92008
$1,795,500
Neighborhood: Olde Carlsbad
5
Beds
3F11/2
Baths
2,980
Sq.Ft.
1999
Year Built
2
Days on Site
220017045
MLS
Located in the heart of Carlsbad, this large 5 bedroom 3.5 bathroom 2,980 sqft estate offers privacy, lush tropical landscaping, fruit bearing trees and an entertainers resort style back yard....
$500,000
Neighborhood: Little Italy
1
Beds
1
Baths
760
Sq.Ft.
2004
Year Built
2
Days on Site
305489256
MLS
Rare ground floor Acqua Vista condo with oversized patio in the heart of Little Italy! Experience the vibrant lifestyle of Little Italy with its trendy restaurants, bars, farmer's market, San Diego...
Coming Soon on 07/08
2174 Villa Sonoma Glen Escondido, CA 92029
$749,000
Neighborhood: Escondido
3
Beds
2F11/2
Baths
1,708
Sq.Ft.
1989
Year Built
2
Days on Site
220017046
MLS
Move-In-Ready!! This beautiful 3 bedroom 2.5 bath is in the cul-de-sac of Villa Del Dios community, southwest side of Escondido, near Lake Hodges. 40k upgrades! New luxury vinyl plank on first floor...
Open 7/9
14631 Evening Star Dr. Poway, CA 92064
$1,315,000
Neighborhood: Starlight Valley Unit 1
3
Beds
2
Baths
1,765
Sq.Ft.
1969
Year Built
2
Days on Site
220017049
MLS
This home has it All! Quiet Location, great yard all around with RV parking, Pool/Spa, putting green, playhouse and more for kids. Tastefully renovated, new cooktop, microwave with a newer...
Coming Soon on 07/08
2894 Corte Morera Carlsbad, CA 92009
$2,599,000
Neighborhood: La Costa Valley
5
Beds
4F11/2
Baths
3,950
Sq.Ft.
2001
Year Built
2
Days on Site
220017051
MLS
Southern California Dreaming! Timeless elegance and sophistication, this beautiful 5 BD home plus an office is an absolute dream. It s open concept layout invites you in and allows you to fully enjoy...

Post a Comment