Ready to buy a home in America’s finest city?
With its year-round mild climate, stunning coastline, and vibrant neighborhoods, San Diego offers an exceptional place to call home. Your dream home could be a Spanish-style single-family house in La Jolla or a modern condo near the Pacific beach.
Whether you’re a first-time homebuyer or new to the San Diego housing market, this guide will teach you everything you need to know. We’ve broken down the entire home-buying process into 13 actionable steps.
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Key Takeaways:
- Get Pre-Approved ASAP: In a competitive market like San Diego, a strong pre-approval letter helps you stand out and shows sellers you’re a serious buyer.
- Save Thousands with Assistance Programs: California offers various down payment and closing cost assistance programs for eligible buyers, including first-time homebuyer options. Be sure to research state and local programs thoroughly to see what you qualify for.
- Don’t Skip California-Specific Inspections: In San Diego, it’s important to review natural hazard disclosures, including earthquake risk, wildfire zones, and coastal considerations. A thorough home inspection is essential, and additional inspections (roof, sewer, or foundation) may be recommended depending on the property.
- Ask for Credits, Not Repairs: If the inspection reveals issues, request a credit at closing rather than repairs. This gives you control over the work and helps avoid delays before closing.
- Protect Your Investment and Your Wallet: Consider earthquake insurance, as it’s not included in standard homeowner’s policies. If you plan to occupy the home, look into property tax exemptions and local programs that may help reduce your annual tax burden.
How to Buy a Home for the First Time in San Diego: 13 Steps!
These steps to buy a house in San Diego will walk you through everything, from assessing finances and budgeting for a down payment to choosing the right mortgage. These 13 steps make the San Diego real estate process clear, simple, and manageable.
Step 1: Assess Your Finances
As a San Diego first-time home buyer, the two factors that should matter the most to you are your credit score and Debt-to-Income (DTI) ratio. Additionally, you must also consider how much you can afford for a down payment, a monthly mortgage, taxes, and insurance.
What Is Your Credit Score?
A credit score is a three-digit number that indicates your creditworthiness to lenders. The minimum credit score to buy a house in San Diego depends on the type of mortgage you get.
Minimum and Ideal Credit Scores by Loan Type
| Loan Type | Minimum Score | Ideal Score |
|---|---|---|
| FHA | 500 (10% down) | 580+ (3.5% down) |
| Conventional | 620 | 740+ for best rates |
| VA | No minimum | 620 |
| USDA | No minimum | 640 |
Portfolio mortgage loans are easy to qualify for. Here, the credit score needed to buy a house starts at around 580. VA loans are available only to veterans and active-duty service members, and require a score of 620. FHA loans also accept scores as low as 580. They are good for buyers with lower credit scores looking for houses in San Diego.
When purchasing property in San Diego, you can check your credit score using several reliable methods. Most of them are free and will not harm your score:
- Annual Credit Reports: Federal law entitles you to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. These can be accessed through the official, government-authorized website, AnnualCreditReport.com.
- Credit Monitoring Services: Many banks, credit card issuers, and financial service apps provide complimentary and regular access to the FICO score. This is a convenient way to track your credit health over time.
Knowing how to repair your credit score is important to get better mortgage rates. If you’re a San Diego first time home buyer, here’s what you need to do:
- Pay down credit card balances and make all payments on time.
- Avoid opening multiple new accounts quickly.
- Consider becoming an authorized user on a family member’s account with a good history.
- Monitor your score regularly to track progress.
How to Calculate Your Monthly Mortgage Payment in San Diego?
As a San Diego first time home buyer, knowing your average mortgage payment helps you plan your budget. Your total payment includes 4 key components, often called PITI:
- Principal and Interest: This is a major chunk of your payment, covering the amount you borrowed (principal) and the cost of borrowing (interest). It’s determined by your loan amount, interest rate, and loan term.
- Taxes: San Diego property taxes are based on your home’s assessed value. The lender holds these funds in an escrow account and pays the tax on your behalf.
- Insurance: Lenders require you to have homeowners’ insurance to protect the property. The annual premium is usually divided by 12 and added to your monthly payment, also managed through the escrow account.
Apart from PITI, your monthly payment may also include Private Mortgage Insurance if your down payment is less than 20%, and HOA fees.
Know How Much Home Can You Afford in San Diego Get an instant monthly payment estimate with Houzeo’s free California mortgage calculator.
What Is a Debt-to-Income (DTI) Ratio?
Your debt-to-income ratio shows how much of your monthly income goes toward debt payments, including mortgage, car loans, credit cards, and student loans. To calculate it, add all monthly debts and divide the total by your gross pre-tax monthly income.
A high DTI can prevent you from qualifying for a mortgage, as it shows that you struggle to manage your debt. For the best mortgage rates and a higher likelihood of mortgage approval in San Diego, aim for a DTI ratio of 36% or lower.
💡 You can still qualify for a loan in San Diego despite a high DTI if you have compensating factors like a strong credit history, significant cash reserves or savings, stable long-term employment, etc.
Recommended DTI Ratios by Loan Type
| Loan Type | Recommended DTI Ratio | With Compensating Factors |
|---|---|---|
| Conventional | 36% back-end | 45-50% |
| FHA | 43% back-end | Up to 50% |
| VA | 41% | Can exceed 50% with the residual income test |
| USDA | 41% back-end | 44% with strong credit |
To improve your DTI ratio for a mortgage, you can either reduce your monthly debts or increase your verifiable income.
- Pay Down Debt: Use a tax refund or bonus to clear smaller loans, or consolidate multiple debts into a single loan with a lower monthly payment.
- Increase Verifiable Income: Ask for a raise, take on part-time work, or start a side business. Include all consistent income sources on your application, such as bonuses or commissions, but remember that lenders require a two-year history for secondary income.
- Adjust Your Housing Budget: A larger down payment reduces your loan amount and your monthly mortgage payment. You can also consider a lower home purchase price to keep your future housing costs down.
Step 2: Budget for Your Down Payment and Closing Costs
You should set aside money for the down payment and closing costs. San Diego first time home buyer programs help make homeownership accessible and affordable.
How Much Down Payment Does a San Diego First Time Home Buyer Need?
Typically, the down payment on a house for a first time home buyer in San Diego usually ranges from 3% to 20% of the property’s price. However, it can vary based on the loan type. FHA loans require just 3.5% down, while some conventional loans allow a 3% down payment.
To help with these upfront costs, there are many state and local down payment assistance programs in San Diego. They provide grants or loans to cover these expenses.
👉 First-Time Home Buyer Programs in San Diego: Find out which is the #1 downpayment assistance program in America’s Finest State.
How to Estimate Closing Costs in San Diego?
Closing costs are fees and expenses paid at closing beyond your down payment. Typically, buyer closing costs in San Diego usually range from 2% to 5% of the home’s price. So, for a $404,300 home, buyers might pay $8,086 to $20,215.
These fees cover lender charges, appraisals, inspections, title insurance, taxes, agent commissions, and recording fees when buying a property in San Diego.
Step 3: Get Pre-Approved for a Mortgage
Secure your financing early by getting pre-approved for a mortgage as a San Diego first time homebuyer. This step helps you understand your budget and strengthens your offer when buying a house.
How to Get Pre-approved as a San Diego First Time Home Buyer?
You need to follow these steps to get pre-approved when buying a house in San Diego:
- Gather Financial Documents: Provide proof of income (recent pay stubs and W-2s), tax returns (last two years), asset statements, debt information, and a government-issued ID.
- Choose a Lender and Apply: Compare lenders in San Diego and submit a mortgage application to get the best rates and terms.
- Receive Pre-Approval Letter: The lender verifies your info and issues a letter stating your approved loan amount, usually valid for 30–90 days.
A mortgage preapproval turns you from a casual house hunter to a serious buyer in San Diego, as it:
- Strengthens Your Offer: 86% of the sellers prefer buyers with a pre-approved mortgage. For the strongest position, ask for a fully underwritten pre-approval, where the lender has already verified all your documents.
- Defines Your Budget: It clarifies exactly how much you can afford, allowing you to focus your home search on a realistic price range.
- Speeds Up Closing: With much of the financial vetting already completed, the mortgage process is streamlined once your offer on a home is accepted.
Yes, you can get pre-approved and even buy a home with bad credit in California. However, your loan options may be limited. You can also expect higher interest rates with poor credit.
Step 4: Choose the Right Mortgage
As a first time homebuyer in San Diego, assess your finances and select a loan that fits your budget and qualifies you for available programs.
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Min Credit Score | 620 | 580 (500 w/10% down) | No minimum | 640 |
| Min Down Payment | 3% to 20% | 3.5% | 0% | 0% |
| Max DTI | 45% to 50% | 43% to 50% | 41%+ | 41% to 44% |
| Mortgage Insurance | PMI if <20% | Always | None | Always |
| Loan Limits | Up to $1,149,825 in high-cost counties | $498,257 to $1,149,825, depending on county | Mirrors conforming limits | Varies |
| Property Eligibility Criteria | Few | Must meet FHA standards | Must meet VA standards | Rural/suburban areas only |
Step 5: Decide Where to Buy a Home in San Diego
Deciding where to buy is one of the most important steps for a first time homebuyer in San Diego. Consider factors like local housing markets, popular neighborhoods, cost of living, and amenities to help you find the best places to live in San Diego.
Why Now Is the Time to Buy in San Diego
The San Diego housing market is a balanced market. You now have more negotiating power and a wider selection of properties to choose from:
- Prices Have Stabilized: The median home price has remained relatively constant at $930,000. This allows you to set your budget with more certainty.
- Sellers are Negotiating: 20.3% of homes in San Diego have seen price drops, signaling increased seller flexibility.
- Homes are on the Market Longer: Properties are taking an average of 37 days to sell, which allows you to make more informed decisions.
These trends show that now is the best time to buy a house in San Diego. According to Mauricio Umansky, founder of The Agency, the current market provides “great opportunities for buyers to be aggressive and write strong offers.”
Popular Areas for Different Buyer Types
With San Diego’s diverse neighborhoods, buyers can be selective about where they purchase. Whether your priorities are schools, lifestyle, or proximity to the coast, San Diego offers options tailored to different buyer needs.
- Best Areas for Families: Neighborhoods like Poway, Carmel Valley, and Scripps Ranch are top choices for their excellent schools, family-friendly parks, and safe communities. If you envision life in a master-planned community designed for family connection, explore homes for sale in Rancho, where properties with access to recreational amenities typically range between $295,000 and $2.14 million.
- Best Areas for Retirees: For those seeking an active retirement, Oceanside and Seven Oaks offer low-maintenance living, golf courses, and vibrant social activities. If you are interested in a community renowned for its active lifestyle, consider homes for sale in La Mesa, where prices generally range from $149,000 to $12,000,000.
- Best Areas for Young Adults: Neighborhoods like East Village, North Park, and Hillcrest offer thriving job markets, walkable streets, and vibrant nightlife. If a cosmopolitan lifestyle is what you seek, browse the latest homes for sale in Downtown, San Diego, where modern apartments start at around $255,000.
Consider the Cost of Living When Choosing a Location
When looking for the best place to buy a home in San Diego, consider the overall cost of living, as lower home prices can be offset by higher taxes or insurance.
High-Cost Areas: La Jolla, Del Mar, and Coronado are typically 15–25% above the national average, driven by coastal demand, luxury amenities, and limited inventory.
Moderate-Cost Areas: Clairemont Mesa, Mira Mesa, and North Park are near or just above the national average, offering a balance of affordability, access to jobs, and community amenities.
Low-Cost Areas: El Cajon, Chula Vista, and National City are generally 5–15% below the national average, providing more budget-friendly options compared to coastal neighborhoods.
Step 6: Start House Hunting in San Diego
Once you’re pre-approved and know where you want to live, the next step is finding the right house. As a first-time home buyer in San Diego, you have two options:
- Work with a Realtor.
- Search for homes online.
An experienced agent can give you valuable local insights and expert guidance on neighborhood trends. However, you’ll have to negotiate the buyer agent commission with the seller, which may raise the home sale price.
If you prefer to take the lead, a high-tech platform like Houzeo is what you need. Whether you’re looking for beachfront mansions, high‑rise penthouses, spacious big homes, or luxury homes in San Diego, Houzeo has you covered. You can browse through thousands of listings, set alerts, and save your search. You can even schedule showings and submit offers, all by yourself.
Don’t Just Browse. Buy.
Your entire home purchase, managed in one place.
Download the Houzeo Mobile AppStep 7: Schedule and Attend Home Showings
After you narrow down your list of potential homes, schedule and attend showings to see each property in person. For a person looking for how to buy a house in San Diego, visiting homes firsthand helps you evaluate condition, layout, and neighborhood, ensuring you make an informed choice.
During the showing, ask specific questions like:
- How long has the home been on the market?
- Why is the owner selling?
- What is the age of the roof, HVAC system, and water heater?
- Are there any HOA fees or pending special assessments?
- Is the property located in a flood zone?
When buying a home in San Diego for the first-time, check the property carefully during the open house. Look for roof sagging, foundation cracks, water stains, uneven floors, or sticking doors, which may indicate serious issues.
As a first time house buyer in San Diego, there are three main aspects you need to focus on when shortlisting homes:
- Insurance Risks: Verify the home’s flood zone using FEMA’s maps. Get a 4-point inspection and a wind mitigation report to assess insurability and identify features, like an old roof or the lack of impact windows, that could drive up insurance costs.
- Commute and Lifestyle: Test your commute during rush hour. Visit the neighborhood at different times to check for noise from traffic, airports, or nightlife. Ensure convenient access to key amenities like schools, groceries, and parks.
- San Diego Home Loans/Assistance Program Eligibility: If you’re applying for a loan or first time buyer program in San Diego, ensure that the house complies with its property requirements, or you may risk losing the assistance.
Pro Tip If multiple major risks stack up like an older roof, suspect electrical, moisture indicators, or weak condo reserves, move the property down your shortlist.
Step 8: Make an Offer
When crafting an offer, make a competitive bid but stay within your budget. As a San Diego first time home buyer, consider factors like the home’s market value, recent comparable sales, and any repairs needed. This increases your chances of getting a fair deal.
Step 1: Analyze Recent Sales
Your agent will pull up real estate comps that are similar to the one you want. Focus on the final sale price, not the list price. Home prices in many San Diego metro areas have seen a constant price, so your offer should reflect this trend.
Step 2: Adjust for the Home’s Condition
Factor in the age and condition of the roof and HVAC. If a comparable home sold for $404,300 but had a new roof, and your target home needs a $20,000 replacement, adjust your offer to account for that expense.
Step 3: Factor in Today’s Market
With more homes for sale, you have leverage. Even home builders are lowering their prices by almost 6% to attract buyers. So, for a home that is priced fairly, offer 3% to 5% less. If it is overpriced, you can justify an even lower offer, citing both the comps and market trends.
What is an Earnest Money Deposit in San Diego?
An earnest money deposit is a “good-faith” payment that shows you are a serious buyer. This money is held in escrow and applied towards your down payment at closing.
In San Diego, the standard deposit is 1% to 3% of the purchase price. On a $404,300 home, this would be between $4,043 and $12,129. In highly competitive markets like La Jolla or Del Mar, sellers may expect a deposit closer to 5%.
Once your offer is accepted, you typically have 3 business days to submit the deposit to an escrow agent, such as a title company or real estate attorney.
Yes, you can get your earnest money deposit back in San Diego, but only if you back out of the sale for the following reasons:
- The inspection reveals major issues, and you exercise the inspection contingency.
- The appraisal comes in low, and you exercise the appraisal contingency.
- You’re unable to secure the required financing, and exit during the financing contingency period
- Title issues are discovered.
A San Diego first time home buyer may forfeit their earnest money because:
- They back out after the contingency periods expire without a valid reason.
- They violate contract terms.
- The seller meets all contract obligations, but the buyer still refuses to close.
Step 9: Conduct Home Inspections
First-time home buyers in San Diego should schedule home inspections to uncover any issues before buying a house. You typically get the inspection report within 24 to 48 hours.
Which California Home Inspections Should You Schedule?
A standard home inspection in San Diego, California isn’t enough. The state’s unique climate and weather risks require a few specialized inspections:
- General Home Inspection ($350–$600): A licensed inspector will examine everything from the roof to the foundation. They pay special attention to storm damage, proper drainage, and the age of the AC unit.
- Roof and Foundation Inspection ($200–$400): Inspectors look for roof age, signs of leaks, foundation cracks, and whether the home has essential seismic retrofits. An aging roof or outdated electrical panel may make insurance harder to obtain or significantly more expensive.
- Wind Mitigation Inspection ($150–$300): Since San Diego sits on multiple fault lines, this inspection checks for seismic retrofitting, cripple wall bracing, and foundation bolting. These features can qualify you for insurance discounts of up to 45%.
- WDO / Termite Inspection ($100–$150): A termite inspection is mandatory for government-backed loans like FHA and VA, and is highly recommended for all others. San Diego’s warm, damp climate is a breeding ground for termites and other pests that can cause severe structural damage.
Consider Other Specialized Inspections
Based on the property, a San Diego first-time home buyer may want to conduct additional tests. For older homes, a sewer scope can detect cracks or tree roots in the main sewer line, saving you from a $15,000 repair down the road. If you see large cracks or uneven floors, a $700 foundation inspection is worth the investment.
For rural properties, a septic inspection is essential. If the home has a pool, a separate pool inspection will check the pump, filter, and structure for costly defects.
It’s not recommended. Even if you plan to buy cheap homes in San Diego, skipping a home inspection can lead to unexpected repair costs.
Step 10: Complete the Home Appraisal
After the inspection, your lender will typically order a home appraisal, which professionally values the property to ensure it matches your offer.
Why Do Lenders Need Appraisals?
A home appraisal in San Diego confirms the property’s market value. Appraisers typically focus on the following parameters:
- Flood Zone and Elevation: A home in a high-risk flood zone will likely be valued lower than a similar inland property due to higher insurance premiums.
- Insurance and Mitigation Features: The age of the roof, the presence of wildfire and earthquake resilience, and impact-resistant windows directly affect a home’s insurability and, therefore, its market value.
- Condo/HOA Health: Appraisers closely examine a condo association’s financial health. They look for anything that may reduce the unit’s value, like the association’s reserve funds or any pending special assessments.
A standard appraisal in San Diego, California costs between $650-$1,000 and typically takes 7 to 14 days to complete. For luxury or waterfront properties, the cost and timeline can be higher.
If the appraisal comes in lower than your offer price, you have an appraisal gap. In such a situation, you can either:
- Renegotiate the Price: Ask the seller to lower the price to the appraised value. In the current market, many sellers are willing to negotiate.
- Cover the Gap: If the seller won’t budge, you can choose to pay the difference in cash.
- Dispute the Appraisal: If you believe the appraiser made a factual error or used poor comparable sales, you can file for a Reconsideration of Value.
- Walk Away: If you cannot reach an agreement, your appraisal contingency allows you to cancel the contract and get your earnest money back.
Step 11: Negotiate Repairs and Credits
As a first time home buyer in San Diego, use your home inspection results to negotiate repairs and request credits from the seller. This step can help reduce unexpected costs and ensure your new house is move-in ready.
How to Use Your Inspection Report to Negotiate Repairs?
Your negotiation strategy should center on issues that impact the home’s safety, structural integrity, and insurability. Minor cosmetic flaws are not worth fighting over and can make you seem unreasonable. It’s easy to make this mistake as a San Diego first time home buyer.
Focus your request on these critical areas:
- Safety Hazards: This includes outdated and dangerous electrical panels, faulty wiring, or missing safety features like GFCI outlets near water.
- Structural Problems: Any issues with the foundation, load-bearing walls, or the roof structure.
- System Failures: A failing HVAC system, major plumbing leaks, or an old roof.
Get 2 to 3 written estimates from licensed contractors for any major repairs. A repair request that includes professional quotes shows you are serious and have done your homework.
Should You Ask for Repair Credit?
While you can ask the seller to perform the repairs themselves, it’s better to ask for credit instead. Credit gives you the funds to hire your own contractors and ensures the work is done to your standards, not just the cheapest way possible. It also allows the sale to proceed on schedule, without any delays.
How to Negotiate Seller Concessions?
Seller concessions are a powerful tool for reducing your out-of-pocket closing costs when buying real estate in San Diego. Here, the seller pays for some of your expenses, such as the appraisal, title insurance, or property taxes.
Your ability to negotiate concessions depends on your loan type. Each loan program sets a maximum limit on how much a seller can contribute:
| Loan Type | Minimum Down Payment | Maximum Seller Concession |
|---|---|---|
| Conventional | Less than 10% | 3% of the purchase price |
| Conventional | 10% or more | 6% of the purchase price |
| FHA Loan | Any amount | 6% of the purchase price |
| VA Loan | Any amount | 4% of the purchase price |
| USDA Loan | Any amount | 6% of the purchase price |
Step 12: Review Your Closing Costs
After negotiating repairs and credit as a first time home buyer in San Diego, review all closing costs carefully. Check title fees, escrow, insurance, and taxes so you can finalize your budget and confidently buy your house.
Understanding Closing Costs in San Diego
- California-Specific Taxes ($1,500+): Your closing costs will include two specific state taxes. The Documentary Stamp Tax costs $1.10 per $1,000 of the property’s sale price. On a $300,000 home, expect to pay around $1,500 or more, depending on the county and city.
- Title Fees ($2,000+): These fees cover the title search, settlement services, and title insurance policies for both you and your lender. In California, the party responsible for paying the owner’s title insurance varies by county.
- Third-Party Fees ($1,000 to $1,500): This category includes the appraisal fee, credit report fee, and flood certification fee. It also covers any inspections, like seismic or fire risks, especially in high-risk zones.
- Prepaid and Escrow Costs ($3,000 to $6,000): You will pay for your first year of homeowners’ insurance. You will also fund your escrow account with several months of property tax and insurance payments to cover future bills.
Step 13: Close on Your New Home
Closing day is the moment you officially become the owner of your new San Diego home. Its success depends on a careful final walk-through, a smooth funding process, and making sure all legal documents are properly signed and recorded.
Complete Your Final Walk-Through
Within 24 hours of closing, you will do one last walk-through of the property. This is not a formal inspection, but rather your final chance to see if you want this home. Use this checklist:
- Verify Repairs: Bring your inspection report and repair addendum. Confirm that all negotiated repairs have been completed to a professional standard.
- Test Everything: Run the air conditioning and test all appliances. Make sure every system is functioning as it should.
- Check for Included Items: Ensure all items that were supposed to be included in the sale, like appliances, window treatments, and light fixtures, are still in place.
- Look for Signs of Additional Damage: Make sure no new damage has occurred since your last visit. If you see any issues, notify your agent and the title company immediately before you sign any documents.
Sign the Documents
While there are numerous documents to sign, the most important ones are:
- The Closing Disclosure: You will sign the final version of this document, which outlines all your loan terms and costs.
- The Promissory Note: This is your legal promise to repay the loan. The promissory note outlines the loan amount, interest rate, repayment schedule, and maturity date.
- The Mortgage: This document secures the property as collateral for your loan.
Once you have signed everything, you will provide your “cash to close” amount via a cashier’s check or wire transfer. After your lender sends their funds to the title company, the deal is officially funded.
Get Your Keys and Celebrate
Once the deal is funded, the title company will record the new deed with the county, officially transferring ownership to you. After they pay the seller and other parties, you will finally get the keys to your new home.
Congratulations, you are officially a San Diego homeowner! 🎉
🚩What are the Red Flags to Look for When Buying a House in San Diego?
A new home is a huge financial investment. To ensure that you don’t sink your money into a dud, look out for these red flags:
1. Bargain-Priced Homes
An asking price that’s significantly lower than comparable homes in the area seems like a dream come true. But that’s just until the roof collapses or faulty electrical systems burn the house down.
An extremely low price could mean the property is uninsurable, or is located in a high-risk flood zone with steep insurance costs. So before you put in an offer, check the home’s sale history and other permits from the local county’s office. Also, get insurance quotes to understand your total expense better.
2. Neighborhood Sell-Out
During the open house, if you notice too many “For Sale” signs on a single street or in a small community, it should ring alarm bells. It could be due to skyrocketing HOA fees, declining school quality, or a recent increase in crime rates. It could also point to a future nuisance, like a commercial development planned nearby.
Talk to potential neighbors to get their opinion on the area. You can also check community social media pages or online forums like Nextdoor for discussions about local issues.
3. Excessive Use of Air Fresheners
A few scented candles create a welcoming atmosphere, but if a home smells like a lavender bubble burst in it, then there’s something fishy. It may be covering up a musty smell that highlights the presence of mold and plumbing issues.
Pay close attention to the smell in the closets, bathrooms, and around the air conditioning unit. Open kitchen and bathroom cabinets and smell the area under the sink. If you detect a musty odor, ask for a separate mold inspection along with the standard home inspection.
4. Sloping or Uneven Floors
Floors that are noticeably slanted or feel bouncy can indicate foundation problems. Given San Diego’s clay soil and seismic activity, periodic droughts followed by heavy rain can cause the foundation to shift over time. Minor settling may be acceptable in older homes, but significant slopes signal a major structural issue.
Bring a marble or a golf ball with you to showings and place it on the floor in different rooms to see if it rolls. Also, look for other signs of foundation issues, like large zigzag cracks in the drywall, especially above door frames.
5. Condensation in Windows
Fog trapped between the panes of double-glazed windows is a sign that the seal has failed. When the seal breaks, the insulating argon gas leaks out and is replaced by moisture-filled air. This compromises the window’s energy efficiency and leads to higher cooling costs in San Diego’s hot climate.
Inspect each window and pay special attention to those that receive direct sunlight, as heat can cause seals to fail faster. If you see failed seals, get a quote for window replacement to use as a negotiating point.
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the house is your primary residence, apply for California’s Homestead Exemption to reduce your property taxes. You could save about $300k-$600k of your home’s value in taxes, which is especially valuable in high-tax areas.
- Set Up Utilities: Get the water, electric, internet, and trash services connected. Don’t forget pest control, especially in humid areas like San Diego, where bugs are active year-round.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood or earthquake insurance may be needed in FEMA zones. Rates are higher in areas like the San Andreas or Hayward Fault.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in San Diego Without a Realtor?
Research neighborhoods and browse listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Which First Time Home Buyer Programs in San Diego Can You Apply For?
Various programs make homeownership accessible for a first time home buyer in San Diego. They assist with down payments through grants or low-interest, deferred-payment loans. Applicants must meet the income and credit score criteria and complete a homebuyer education course to avail of these programs.
| Program Name | Eligibility | Assitance Type | Key Benefits |
| SDHC First-Time Homebuyer Program | First-time buyers earning up to 80%–120% of San Diego’s AMI | Deferred-payment loans and homeownership grants | Helps cover down payment and closing costs with no monthly payments |
| SDHC Moderate-Income Down Payment Assistance | Moderate-income buyers (up to 120% AMI) | Down payment assistance loan | Expands access to homeownership for middle-income households |
| SDHC Closing Cost Assistance Program | Low-income first-time buyers | Deferred-payment loan for closing costs | Reduces upfront costs for qualified buyers |
| CalHFA MyHome Assistance Program | First-time buyers using a CalHFA loan | Deferred-payment junior loan up to 3.5% of purchase price or appraised value | Can be layered with SDHC programs for greater affordability |
| Local City & County Programs (San Diego) | Varies by neighborhood (e.g., City Heights, Encanto, Barrio Logan) | Silent second loans, grants, or rehab assistance | Tailored support for buyers in underserved or high-cost areas |
1. SDHC First-Time Homebuyer Program
- Eligible Buyers: First-time homebuyers in San Diego with income below 80% of AMI.
- Credit Score: Minimum 640.
- Assistance: Deferred-payment loans for down payment and closing costs.
This program helps low-income families purchase their first home in San Diego by reducing upfront costs. It is designed to make homeownership more attainable in a high-cost market.
2. SDHC Moderate-Income Down Payment Assistance
- Eligible Buyers: Moderate-income buyers earning up to 120% of AMI.
- Credit Score: Minimum 640.
- Assistance: Loans up to 25% of the purchase price for down payment and closing costs.
This program expands access to homeownership for moderate-income households, offering significant support in neighborhoods where affordability is a challenge.
3. SDHC Closing Cost Assistance Program
- Eligible Buyers: First-time buyers meeting income limits set by SDHC.
- Credit Score: Minimum 640.
- Assistance: Grants or deferred loans to cover closing costs.
By covering closing expenses, this program reduces the financial burden at the time of purchase, helping buyers keep more cash on hand for moving and other expenses.
4. CalHFA MyHome Assistance Program
- Eligible Buyers: First-time homebuyers across California, including San Diego.
- Credit Score: Minimum 640.
- Assistance: Up to 3.5% of the purchase price for down payment or closing costs.
This statewide program provides flexible assistance that can be paired with CalHFA first mortgage products, making it especially useful for buyers in high-cost areas like San Diego.
5. Local City & County Programs (San Diego)
- Eligible Buyers: Varies by program; typically first-time buyers with income limits.
- Credit Score: Minimum 640–660, depending on the program.
- Assistance: Grants, deferred loans, or tax credits for down payment and closing costs.
San Diego city and county offer localized programs tailored to specific communities, helping buyers overcome affordability challenges with targeted financial support.
» First Time Buyer Programs: Find the perfect program that helps you get the key to your first home.
What Should You Know Before Buying a House in San Diego?
Before you buy a home in America’s finest State, you must understand the factors that can impact your budget and lifestyle.
What are Some Additional Costs When Buying Houses in San Diego?
Apart from the purchase price, you must account for several other expenses, like property taxes and potential HOA fees. However, the most critical consideration for any San Diego home buyer is insurance.
- Why Homeowners Insurance is Crucial: San Diego’s susceptibility to hurricanes, floods, and other natural disasters makes homeowners’ insurance important. This coverage protects your investment from catastrophic damage.
- High Insurance Costs: Due to these risks, the projected annual cost of homeowners’ insurance may go as high as $1,383.
- Choosing the Right Policy: When selecting a policy, ensure it provides adequate hurricane and flood coverage. You could lower your premium by choosing a home with wind mitigation features like impact windows or a newer roof.
Do You Need Separate Wildfire Insurance in San Diego?
Yes, you do. Standard homeowners’ insurance does not cover Wildfire damage, so a separate policy is necessary for protection.
| Wildfire Zone | Risk Level | Wildfire Insurance Requirement in California |
|---|---|---|
| Very High Fire Hazard Severity Zone (VHFHSZ) | Extreme Risk | Standard insurance may be unavailable; many homeowners must use the California FAIR Plan for wildfire/fire coverage, paired with a DIC policy for full protection. |
| High Fire Hazard Severity Zone (HFHSZ) | High Risk | Wildfire coverage is typically included in homeowners insurance, but premiums are higher, and some insurers may decline coverage; FAIR Plan is often used. |
| Wildland–Urban Interface (WUI) | High to Extreme Risk | Insurance can be limited; may require proof of defensible space and fire-hardening. FAIR Plan is frequently required. |
| Moderate Fire Hazard Severity Zone | Moderate Risk | Homeowners insurance is usually available with wildfire coverage included, though premiums may be elevated. |
| Low Fire Hazard / Urban Core | Low Risk | Wildfire coverage is included in standard policies; easier to insure with lower premiums. |
When is Wildfire Insurance Required?
Whether you need wildfire or earthquake insurance typically depends on your property’s location, your mortgage lender, and your homeowners’ insurance provider. However, there are two main situations where wildfire insurance is mandatory in California:
- Federally-Backed Mortgages in High-Risk Zones: If your home is in a high-risk flood zone and you have a federally-backed mortgage, federal law requires you to have flood insurance.
- State-Regulated Policies: California state law requires most homeowners with policies from the California FAIR Plan to have wildfire insurance. They must also purchase a separate policy through the National Flood Insurance Program (NFIP) or a private insurer.
Pro Tip Wildfire maps change over time. You can check your property’s official wildfire zone using the Fire Hazard Severity Zones.
Why First-Time Homebuyers Should Explore San Diego Now?
If you want to buy homes in San Diego, it is a smart choice for first-time buyers, thanks to its stunning coastline, diverse neighborhoods, and a market that now offers more opportunities for buyers. From the luxury coastal enclaves of La Jolla and Del Mar to the vibrant urban lifestyle of North Park and Hillcrest, there’s a community for every budget.
With thousands of homes for sale and numerous down payment assistance programs, homeownership is more attainable than ever.
» Houzeo Reviews: Read what customers have to say about Houzeo, San Diego’s best home buying website.
