How Much House Can You Afford in San Diego?

How we calculate affordability

This calculator uses the same debt-to-income (DTI) ratios that lenders use to qualify borrowers. We show you three price tiers so you can make an informed decision about how much to spend.

The 28/36 rule

Most lenders follow the 28/36 rule: your housing costs (mortgage payment, property tax, insurance) should not exceed 28% of your gross monthly income, and your total debt payments (housing costs plus car loans, student loans, credit cards) should not exceed 36% of your gross income.

FHA loans are more flexible, typically allowing up to 31% front-end and 43% back-end ratios, which means you may qualify for more with an FHA loan.

Why we show three price tiers

Just because a lender will approve you for a certain amount doesn't mean you should borrow that much. Our "comfortable" tier uses a 25% front-end ratio, and our "conservative" tier uses 20%. Many financial advisors recommend keeping housing costs well below the maximum to leave room for savings, emergencies, and enjoying life in San Diego.

Factors that affect what you can afford

Credit score

Your credit score directly impacts your interest rate. A buyer with a 740+ score might get a rate 1-1.5% lower than a buyer with a 620 score. On a $600,000 loan, that difference can mean $400-$600 more per month — which significantly affects how much home you can afford.

Down payment

A larger down payment means a smaller loan amount, which means a lower monthly payment. It also eliminates or reduces PMI if you're using a conventional loan. And with San Diego's generous DPA programs, your effective down payment might be much larger than your savings alone.

Existing debts

Car payments, student loans, and minimum credit card payments all count against your back-end DTI ratio. Paying down debts before applying for a mortgage can significantly increase how much home you qualify for.

San Diego-specific considerations

This calculator uses San Diego's average effective property tax rate of 1.25% and homeowner's insurance average of $1,500/year. If you're considering a home in a newer development, remember to add Mello-Roos taxes — use our mortgage calculator to see the full picture.