Don't Have 20% Down? Here's What's Actually Available for San Diego Buyers in 2026
Let's get one myth out of the way first: you do not need 20% down to buy a house in San Diego. I hear this one constantly, usually from someone who's already talked themselves out of buying before they've even started looking. If I had a dollar for every time someone told me "I'll start saving and call you in three years," I'd have enough for a decent down payment myself.
Here's the truth: there's more help out there right now than most people realize, and 2026 actually brought some new options to the table. Let's walk through what's available.
The New Program for 2026
The County of San Diego rolled out a new Down Payment and Closing Cost Assistance (DCCA) program this year aimed at moderate-income, first-time buyers. If you qualify, it's a low-interest, deferred loan that can cover up to 17% of your purchase price toward your down payment, plus you contribute at least 3% yourself. Translation: that 20% gap everyone stresses about? This alone can close most of it.
The loan doesn't need to be repaid until you sell, refinance, pay off your first mortgage, or stop living in the home as your primary residence. It's run through the San Diego Housing Commission on behalf of the County, and to qualify you'll need to complete a homebuyer education class and a counseling session; more on that below.
Other Programs Worth Knowing About
The County program isn't the only option, and depending on your situation, one of these might actually fit you better:
CalHFA MyHome Assistance Program — This is California's most widely used assistance program, and it works alongside FHA, VA, conventional, and USDA loans. It functions as a "silent second" — a deferred loan with no monthly payment that sits behind your main mortgage, covering roughly 3–3.5% of your purchase price.
SDHC First-Time Homebuyer Program — If you're buying a single-family home, townhome, or condo within San Diego, this program can provide a deferred down-payment loan alongside closing cost assistance with no payments due until you sell, refinance, or move out. This is also where you'll find San Diego's Mortgage Credit Certificate (MCC) option, which works a little differently: instead of help with your down payment, it's a federal tax credit worth a percentage of the annual mortgage interest you pay. It doesn't get you into the house, but it can make owning it more affordable every year after you close.
VA Loans — If you've served, this deserves its own conversation entirely (I'm working on a full post just for my fellow veterans and active-duty buyers). But it's worth mentioning here: a VA loan can eliminate the down payment question altogether for those who qualify.
What This Actually Looks Like in Practice
Say you're eligible for the County DCCA program and you're a moderate-income buyer. On a $700,000 home, your 3% contribution is $21,000 and the deferred loan can cover a big chunk of the rest. Combine that with a program like CalHFA MyHome for closing costs, and suddenly that "impossible" San Diego price tag looks a lot more doable.
Every buyer's numbers look different depending on income, credit, and the loan program you end up in which is exactly why this isn't a one-size-fits-all situation. It's also why step one is always a real conversation with a lender who can run your actual numbers, not a generic online calculator.
Where to Start
If any of this sounds like it could apply to you, here's what I'd tell you to do next:
Talk to a lender first — before you fall in love with a house, get pre-approved and find out which of these programs you actually qualify for. I have several I can recommend if you are looking for suggestions.
Check the income limits — most of these programs are tied to San Diego's Area Median Income (AMI), so your eligibility depends on your household income and family size.
Budget time for the education requirement — several of these programs require a homebuyer class and/or counseling session before you can use the funds.
Final Thoughts
None of this needs to be intimidating and you don't have to figure it out alone. I've walked plenty of buyers through exactly this process including a lot of folks who came to me convinced they weren't ready, and were pleasantly surprised. If you want to find out what you actually qualify for, reach out and let's talk it through — no pressure, just real numbers.
Mario Pais
Kappel Realty Group | Compass
DRE #02246635
A quick note: program details, income limits, and loan percentages change, and eligibility depends on your individual financial situation. This post is meant to give you a general idea of what's out there — for exact numbers and to confirm you qualify, talk to a licensed lender.
