San Diego mortgages: prices, county loan limits and buyer help

#San Diego prices against California and the US

Among the 20 large cities this site covers, San Diego has the highest median home value and the highest median rent. The median home costs 8.8 times the median household income, against 7.6 for California and 4.4 for the US, with a median household income above the state’s. Most San Diego households rent: 46.5% of occupied homes are owner-occupied.

#Loan limits in San Diego County

At San Diego prices, the size of the loan decides which kind of mortgage you get. Fannie Mae and Freddie Mac buy loans up to the national baseline of $832,750 for a single-family home, and up to $1,104,000 in San Diego County, a high-cost area. Loans above the county limit are jumbo loans with their own down-payment, reserve and credit standards.

To keep a median-price loan within the national baseline you would need about $147,950 down, or 15.1% of the price. With 10% down, the most you can pay and stay within the county limit is about $1,227,000. The jumbo loans guide covers what changes above the limit.

#Monthly cost at the median price

The cash needed is large either way: $98,070–$196,140 for the down payment plus closing costs of $19,614–$49,035 at the CFPB’s typical range. Change the inputs in the mortgage payment calculator.

#Proposition 13 and a new buyer’s tax bill

San Diego’s effective property tax rate of 0.62% is lower than California’s 0.71% and below the national 0.89%, but that average flatters what a buyer will pay. Under Proposition 13, California generally sets a home’s taxable value at its purchase price and limits increases while you own it, so long-time owners often pay tax on values far below today’s prices. Your bill starts from your purchase price at the full local rate, plus any special assessments on the parcel — ask for the property’s tax bill and check for assessments before you make an offer. Expect the tax line to be higher than the citywide average used in the example above.

#San Diego Housing Commission help for buyers

The San Diego Housing Commission runs the City of San Diego’s first-time homebuyer programs. At its latest update, the lower-income program showed no funding available, so don’t plan around it unless the Commission reopens it. The middle-income program was listed with funds available:

The $40,000 loan equals 4.1% of the median home value — helpful, but short of a 10% down payment at that price. Interest at 4% adds about $1,600 a year to the balance during the payment-free period. The program’s price limit is above the city’s median value. State programs from CalHFA are covered in the California guide.

#Incomes and the San Diego price tag

The median San Diego household earns $111,032. Holding housing to Freddie Mac’s 30% guideline gives $2,776 a month, enough for about $370,000 with 10% down at today’s average rate — 38% of the median value. Buying the median home on the same terms would take about $294,543 a year. Run your own income in the affordability calculator.

#Documentary transfer tax and renting

San Diego County’s Recorder collects a documentary transfer tax of 0.11% of value for the county and its cities — about $1,079 on a median-price home; the purchase contract says who pays it. California has no separate state transfer tax. The closing cost calculator adds lender and title costs.

Most San Diego households rent: the median San Diego rent is $2,414 a month against about $7,364 to own the median home with 10% down. The rent vs buy calculator shows how long you would need to stay for buying to win. Compare Los Angeles and Seattle, two other West Coast markets on this site.