At $812,000 median price and FHA at 13.2% of San Diego originations, most first-time buyers use 3.5% down. Bank of America's streamline FHA refinance is relevant within 12–18 months if rates drop; factor that flexibility into the Bank of America vs. Chase comparison.
San Diego, California: 2026 Market Data
📊 LOCAL MARKET DATA
- Median home price: $812,000
- Year-over-year price change: 3.2%
- FHA loan share: 13.2%
- Conventional loan share: 74.6%
- Property tax rate (San Diego County): 1.04%
- Top local lenders: Bank of America, Chase, Wells Fargo
Data from U.S. Census Bureau, HMDA, county assessor
FHA Loans in San Diego: 2026 Market Snapshot
FHA loans play a meaningful role in San Diego's housing market, accounting for 13.2% of loans here. That said, conventional financing dominates at 74.6%, which tells you something about the local landscape: many buyers either have the down payment and credit profile to go conventional, or they find it makes more sense for their situation. With the median home price sitting at $812,000 and prices up 3.2% year over year, affordability remains a real challenge, and FHA's lower down payment requirements can help certain buyers get a foot in the door. It's worth doing the math carefully before committing. San Diego County's property tax rate is 1.04%, which adds a recurring cost on top of your mortgage that's easy to underestimate on a home in this price range. FHA loans come with their own cost structure, so compare the full picture against conventional options rather than focusing on the down payment alone. Shop around and gather several quotes before deciding. Many established lenders operate in San Diego, and terms can vary, so read the fine print and ask questions about every fee. A little comparison upfront can make a real difference over the life of your loan.
San Diego Property Taxes at 1.04%: How That Hits Monthly PITI
San Diego County's effective property tax rate sits right around 1.04 percent, which is close to California's Proposition 13 base of 1 percent plus local voter-approved add-ons. On a home priced near $812,000, that translates to roughly $8,450 a year, or about $704 tacked onto your monthly payment before insurance or mortgage insurance even enter the picture. With an FHA loan, your lender folds those taxes into your PITI through an escrow account, so you're paying a slice every month rather than a giant lump sum twice a year. The thing buyers underestimate is how much those Mello-Roos districts in newer developments like Otay Ranch or 4S Ranch can stack on top of the base rate. Always check the specific parcel's tax bill, not just the county average. Two homes at the same price can carry very different monthly costs once special assessments get layered in. Budget for the real number, not the headline rate.
