Loan Programs

Find the Right Loan
for Your San Diego Home

Every borrower is different. I work with dozens of lenders to match you with the loan program that fits your goals, credit profile, and financial situation — not just what's easiest to sell.

Talk to Don About Your Options
VA Loan FHA Loan Conventional Jumbo Loan Down Payment Assistance DSCR Investment Bank Statement
For U.S. Veterans & Active Duty

VA Loan — Zero Down for Those Who Served

If you've served in the military, the VA loan is one of the most powerful mortgage benefits available to you. No down payment, no PMI, competitive rates — it's a benefit you've earned and I'll make sure you get the most out of it.

Key Numbers

Down Payment
0%
Min. Credit Score
580+
Mortgage Insurance
None
Loan Limit
No limit*

Why VA loans stand out

Zero down payment required — one of the only loan programs that lets qualified buyers purchase with no money down

No private mortgage insurance (PMI) — saves hundreds per month compared to conventional loans with low down payments

Competitive interest rates — VA loans typically offer rates below conventional market rates

Flexible credit requirements — more forgiving underwriting compared to conventional loans

Reusable benefit — you can use your VA benefit multiple times throughout your life

Ideal for

Active duty military, veterans, and surviving spouses who meet VA service requirements. If you've served, this should be your first conversation — it's the best loan program available for those who qualify.

VA Loan Requirements

Service Requirement
90 consecutive days active duty wartime, 181 days peacetime, 6 years National Guard/Reserves, or surviving spouse
Certificate of Eligibility (COE)
Required — I can help you obtain this directly through the VA system during the application process
VA Funding Fee
1.4%–3.6% of loan amount (can be rolled into loan). Waived for veterans with service-connected disability
Property Requirements
Must be primary residence. Single family, condos (VA approved), and multi-unit up to 4 units if owner-occupied

FHA Loan Requirements

Credit Score
580+ for 3.5% down. 500–579 requires 10% down. Some lenders go lower — let's talk about your situation.
Debt-to-Income (DTI)
Up to 57% with compensating factors. More flexible than conventional loans for borrowers with higher existing debt.
Mortgage Insurance (MIP)
Upfront MIP of 1.75% + annual MIP of 0.15%–0.75% depending on loan size and term. Required for life of loan if down payment is under 10%.
Loan Limits (CA 2025)
Vary by county. High-cost California counties can go up to $1,149,825 for single-family homes.
Great for First-Time Buyers

FHA Loan — Low Down Payment Made Simple

FHA loans are backed by the Federal Housing Administration and are one of the most accessible mortgage programs available. Lower credit score requirements, low down payment, and flexible underwriting make this a go-to for buyers who are earlier in their financial journey.

Key Numbers

Down Payment
3.5%
Min. Credit Score
580+
Mortgage Insurance
Required
Backed By
FHA / HUD

Why FHA works for many buyers

3.5% down payment — one of the lowest down payment requirements available for buyers with 580+ credit

More lenient credit standards — great for buyers still building their credit history or recovering from past challenges

Gift funds allowed — your entire down payment can come from a family member gift

Flexible DTI ratios — can qualify with higher debt relative to income than conventional loans

Ideal for

First-time buyers, buyers with credit scores in the 580–680 range, or anyone with limited savings for a down payment. If PMI is a concern, let's compare FHA vs. conventional to find what actually costs less over time.

Most Common Loan Type

Conventional Loan — Flexible & Powerful

Conventional loans are not government-backed — they follow guidelines set by Fannie Mae and Freddie Mac. They offer more flexibility, no upfront mortgage insurance, and the ability to remove PMI once you have 20% equity. For buyers with solid credit, this is often the best option.

Key Numbers

Down Payment
3%+
Min. Credit Score
620+
PMI
Removable
Loan Limit
$806,500+

Why conventional is often the best fit

PMI can be removed — once you reach 20% equity, private mortgage insurance goes away. FHA MIP often stays for the life of the loan.

No upfront mortgage insurance fee — unlike FHA which charges 1.75% upfront, conventional PMI is monthly only

Higher loan limits — conforming limits go up to $806,500 in most areas; jumbo options available above that

Available for investment properties and second homes — FHA and VA are primary residence only

Multiple term options — 10, 15, 20, and 30-year fixed, plus adjustable-rate options

Ideal for

Buyers with 620+ credit score, stable income, and at least 3-5% down. If you have 10-20% down and good credit, conventional almost always beats FHA on total cost. Let's run the numbers for your specific situation.

Conforming vs. Jumbo

Conventional loans are split into conforming (below loan limit) and jumbo (above loan limit). Each has different requirements.

Conforming
Up to $806,500 (2025 limit, most CA counties higher). Standard underwriting, best rates, most flexible options.
Jumbo
Above conforming limit. Typically requires 10-20% down, 700+ credit score, and 12 months reserves. Rates slightly higher but I shop multiple jumbo lenders.
High Balance Conforming
In high-cost California counties, conforming limits can go up to $1,209,750 — meaning better rates than true jumbo even at higher loan amounts.

Jumbo Loan Requirements

Loan Amount
Above $806,500 for most counties. In high-cost California counties, the conforming limit can reach $1,209,750 — anything above that is jumbo.
Credit Score
Typically 700+ for most programs. Some lenders will go to 680 with compensating factors. Higher scores unlock the best jumbo rates.
Down Payment
Typically 10–20% depending on loan size, credit, and lender. Some programs allow 10% down up to $2M with strong credit and reserves.
Cash Reserves
Most jumbo lenders require 6–12 months of PITI in liquid reserves after closing. Strong reserves can compensate for other risk factors.
DTI Ratio
Generally under 43–45%. Some lenders allow higher DTI with significant assets or strong compensating factors.
For High-Value Home Purchases

Jumbo Loan — No Conforming Limits, No Problem

When the home you want exceeds conforming loan limits — common in California's high-cost markets — a jumbo loan is the answer. These are larger loans that require stronger credit, more reserves, and slightly higher rates, but open the door to high-value properties that don't fit inside conventional limits.

Key Numbers

Loan Amount
$806K+
Min. Credit Score
700+
Down Payment
10-20%
Reserves Required
6-12 mo.

What makes jumbo loans work

No loan amount ceiling — finance high-value properties well above conforming limits with the right qualifications

Competitive rates through brokers — as a broker I shop multiple jumbo lenders, which is critical since jumbo pricing varies significantly between lenders

Fixed and adjustable options — 30-year fixed, 15-year fixed, and ARM products (5/1, 7/1, 10/1) available depending on your strategy

Primary residence, second home, and investment — jumbo programs available for various property types

Interest-only options available — some jumbo programs offer interest-only periods for cash flow flexibility

Ideal for

Buyers purchasing higher-value homes in California's competitive markets — San Diego, Los Angeles, Orange County, Bay Area — where $1M+ purchase prices are common. If you have strong credit, solid income, and sufficient reserves, a jumbo loan is very attainable. Shopping multiple lenders through a broker can save tens of thousands in rate differences alone.

Common DPA Programs in California

CalHFA MyHome
Deferred junior loan up to 3.5% for down payment or closing costs. For first-time buyers with qualifying income limits.
CalHFA Dream For All
Shared appreciation loan providing up to 20% of purchase price. A powerful program for first-generation buyers when funding is available.
Local City / County Programs
Many California cities and counties offer their own DPA grants and silent second programs. Let me research what's available in your specific area.
Lender-Specific Programs
Several lenders I work with offer their own DPA programs — some as grants, some as forgivable loans. Access to multiple lenders means more DPA options for you.
For Buyers With Limited Savings

Down Payment Assistance — Homeownership Is Closer Than You Think

One of the biggest barriers to homeownership is saving for a down payment. Down Payment Assistance (DPA) programs — offered through state, county, city, and lender programs — can provide grants, forgivable loans, or deferred loans to cover some or all of your down payment and closing costs.

What DPA Can Provide

Assistance Type
Grant or Loan
Amount
Up to 20%
Repayment
Varies
Combined With
FHA / Conv.

What you need to know

Some DPA is a grant — free money — doesn't need to be repaid if you meet program requirements

Silent seconds are deferred — no payments until you sell, refinance, or pay off the first mortgage

Income limits apply — most programs have household income caps, but they're often higher than people expect

Often for first-time buyers — though some programs define "first-time" as not owning in the past 3 years

I research programs for your area — availability and funding change frequently; I stay current on what's available

Ideal for

First-time buyers, lower-to-moderate income households, and buyers who have the income to support a mortgage payment but haven't been able to save for a down payment. Don't assume you don't qualify — let's check.

For Real Estate Investors

DSCR Investment Loan — Qualify on Rental Income, Not Your Salary

DSCR stands for Debt Service Coverage Ratio. These loans qualify based on the rental income the property generates — not your personal income or tax returns. For investors with multiple properties, self-employed buyers, or anyone whose tax returns don't reflect their actual cash flow, DSCR loans are a game changer.

Key Numbers

DSCR Minimum
0.75–1.0x
Down Payment
20-25%
Min. Credit Score
640+
Income Docs
Not required

Why investors love DSCR loans

No personal income verification — qualification is based on the property's rent-to-mortgage ratio, not your W-2 or tax returns

No employment verification required — ideal for self-employed investors whose write-offs reduce taxable income

Scale your portfolio faster — not limited by personal DTI ratios, making it easier to acquire multiple properties

Short-term rentals (Airbnb) eligible — many DSCR programs allow STR income with proper documentation

LLC and entity vesting available — purchase in your business entity name for liability protection

Ideal for

Real estate investors purchasing rental properties, self-employed buyers whose tax returns understate income, buyers with multiple investment properties, and short-term rental (STR/Airbnb) investors. If the rent covers the mortgage — let's talk.

How DSCR Is Calculated

The Debt Service Coverage Ratio measures whether the property's income covers its debt payments.

Monthly Gross Rent
PITIA (Principal+Interest+Tax+Insurance+HOA)
= DSCR
DSCR above 1.25x Excellent — best rates
DSCR 1.0x – 1.25x Good — qualifies easily
DSCR 0.75x – 1.0x May qualify — higher rate
DSCR below 0.75x Difficult — let's explore options

Bank Statement Loan Requirements

Statements Required
12 or 24 months of personal or business bank statements. Business accounts use an expense factor (typically 50%) to calculate qualifying income.
Credit Score
Typically 620–660 minimum depending on lender. Higher scores get better rates and terms.
Down Payment
Typically 10–20% depending on loan size, credit score, and lender program. Some options as low as 10% down.
Self-Employment Verification
Must be self-employed for 2+ years. Business license, CPA letter, or other verification typically required.
For Self-Employed Borrowers

Bank Statement Loan — Your Real Income, Your Real Approval

If you're self-employed, a business owner, freelancer, or contractor — your tax returns often show far less income than you actually earn. Write-offs that save you money at tax time can make traditional mortgage qualification nearly impossible. Bank statement loans solve that problem by qualifying you on actual cash flow instead.

Key Numbers

Down Payment
10-20%
Min. Credit Score
620+
Income Docs
Bank Stmts
Self-Employed
2+ Years

Why bank statement loans matter

No tax returns required — income is calculated from 12 or 24 months of bank deposits instead of AGI on your 1040

Write-offs don't hurt you — the deductions that reduce your taxable income don't factor into qualification

Personal or business accounts — qualify using personal statements or business statements with an expense factor applied

Higher loan amounts available — no conforming limits on most bank statement programs

Primary, second home, and investment — available for various property types depending on the program

Ideal for

Self-employed business owners, freelancers, contractors, gig workers, consultants, and anyone whose tax returns significantly understate their actual income. If you've been told "no" by a traditional lender because of your income docs — let's look at this option.

Side by Side

Quick Loan Comparison

Not sure which loan fits your situation? Here's a quick overview. Every situation is unique — reach out and I'll help you figure out the right fit.

Loan Type Min. Down Min. Credit Income Docs PMI/MIP Best For
VA Loan 0% 580+ Standard ✓ None Veterans & active military
FHA Loan 3.5% 580+ Standard Required First-time buyers, lower credit
Conventional 3% 620+ Standard Removable Buyers with good credit
Jumbo Loan 10-20% 700+ Standard Varies High-value homes above $806,500
DPA Programs 0-3% 620+ Standard Varies Limited savings, first-time buyers
DSCR Loan 20-25% 640+ Rent roll only ✓ None Real estate investors
Bank Statement 10-20% 620+ Bank stmts Varies Self-employed, business owners
Common Questions

Questions about loan types

How do I know which loan type is right for me?

It depends on your credit score, income type, down payment, whether it's a primary residence or investment, and your financial goals. That's exactly why the first conversation with me matters — I look at your full picture and recommend what actually makes sense, not just what's easiest to process.

Can I use down payment assistance with any loan type?

DPA programs are typically designed to work with FHA or conventional loans for primary residences. They're not available for investment properties, DSCR loans, or bank statement loans. Eligibility varies by program — let me research what's available in your area and for your situation.

I'm self-employed — can I really get a mortgage?

Absolutely. Two years of self-employment history opens up conventional, FHA, VA, and bank statement loan options. If your tax returns show strong income, conventional or FHA often work well. If write-offs have reduced your reported income, bank statement loans are specifically designed for your situation. Don't count yourself out without talking to someone first.

What's better — FHA or conventional for a first-time buyer?

It depends on your credit score and down payment. With 620+ credit and 5%+ down, conventional often wins on total cost because PMI can be removed. With 580–620 credit or less than 5% down, FHA typically makes more sense. I'll run a true side-by-side comparison for your specific numbers — not a generic answer.

What is the conforming loan limit in California?

The 2025 baseline conforming limit is $806,500 for most US counties. However California has many high-cost counties where limits are higher — up to $1,209,750 in areas like Los Angeles, San Diego, and the Bay Area. Anything above your county's limit requires a jumbo loan. I can tell you exactly what applies to your area.

Do DSCR loans have higher interest rates than conventional loans?

Yes — typically 0.5% to 1.5% higher than conventional rates. This reflects the non-QM nature of the product. However for investors, the ability to qualify without W-2 income and scale a portfolio often outweighs the rate difference when the numbers work on the investment itself.

Not sure which loan fits your situation?

Tell me about your situation and I'll give you a straight, honest recommendation — no sales pitch, no pressure.

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