Can I Buy a Home in San Diego in 2026? A Realistic Breakdown

January 23, 2026
Steve Hasani
Buying a Home

January 2026 | First Liberty Funding Corp

San Diego continues to be one of the most desirable places to live in the country, but with home prices, interest rates, and cost of living all top of mind, many buyers are asking the same question:

Can I realistically buy a home in San Diego in 2026?

The short answer is yes — but success depends on understanding how today’s market works and how lenders actually evaluate buyers. This guide breaks down what matters most in 2026 so you can make informed decisions with confidence.

What the San Diego Housing Market Looks Like in 2026

San Diego’s housing market remains competitive, supported by strong demand, limited inventory, and long-term desirability. While prices are no longer rising at the pace seen in past cycles, they have remained relatively stable, particularly in well-located neighborhoods.

Inventory is still tight in many areas, which means buyers benefit from preparation and flexibility. Interest rates continue to influence monthly payments, but they are not the only factor determining whether buying makes sense.

The most successful buyers in 2026 are those who focus less on timing the market and more on building a clear strategy.

What Actually Determines Whether You Can Buy a Home

Many buyers assume income alone determines eligibility. In reality, lenders evaluate a broader financial picture.

Key factors include:

Credit profile
Monthly debts and obligations
Down payment amount
Loan structure and program selection

Two buyers earning the same income can receive very different loan approvals depending on these factors. This is why buying power is not the same as salary.

At First Liberty Funding, we often help buyers uncover options that were not previously explained to them by traditional lenders.

Do You Need 20 Percent Down to Buy in San Diego?

A 20 percent down payment is not required for many buyers. Depending on eligibility and loan type, options may include:

Low down payment programs
First-time buyer programs
Gift funds from family members
Specialized loan structures that reduce upfront cash requirements

Understanding which programs apply to your situation can significantly change what feels possible.

Buying a Home if You Are Self-Employed

Self-employed buyers often assume buying a home will be difficult or impossible. While traditional underwriting can be restrictive, alternative solutions exist.

At First Liberty Funding, we regularly work with self-employed borrowers using options such as:

Bank statement loan programs
Alternative income documentation
Customized qualifying strategies

These solutions are designed for business owners, contractors, and entrepreneurs whose income does not fit neatly into standard tax-return models.

How Much Can You Afford in San Diego?

Affordability is not just about the purchase price. A realistic approach considers:

Monthly payment comfort
Property taxes and insurance
Long-term financial goals

Rather than focusing only on the highest price you can qualify for, it is often smarter to focus on a payment that aligns with your lifestyle and future plans.

Loan structure, term length, and down payment strategy can all influence affordability without requiring major sacrifices.

Should You Buy Now or Wait?

This is one of the most common questions we hear. The answer depends on your personal situation, not market headlines.

Buying may make sense if you:

Plan to stay in the home long term
Have stable income or qualifying alternatives
Want to build equity rather than continue renting

Waiting may be appropriate if you need time to improve credit, save funds, or clarify long-term goals. The most important step is understanding your position early so you can plan intentionally.

How First Liberty Funding Helps Buyers in 2026

Buying in San Diego requires more than a rate quote. It requires clarity, planning, and guidance.

At First Liberty Funding, we help buyers by:

Explaining loan options in plain language
Creating strategies for complex or non-traditional income
Guiding clients from pre-approval through closing
Providing realistic expectations from the start

Our goal is not to rush decisions, but to help buyers move forward confidently when the time is right.

Final Thoughts

Yes, it is still possible to buy a home in San Diego in 2026. The key is understanding how lenders evaluate buyers today and working with a mortgage team that looks beyond surface-level numbers.

If you are considering buying, refinancing, or simply want to understand your options, a conversation early in the process can make all the difference.

First Liberty Funding is here to help you navigate the path forward with clarity and confidence.