Waiting to Save More for a Down Payment? The Numbers May Surprise You.

One of the biggest misconceptions I still hear from buyers in San Diego is this:

“I need 20% down to buy a house.”

The reality? Most buyers aren’t putting 20% down, especially not in a market like ours.

According to a new 2026 report from Realtor.com, the median down payment nationally has dropped to its lowest level in four years. Buyers today are putting down an average of about 12.8% of the purchase price, and many are purchasing with far less.

Honestly, that makes sense in San Diego.

When the median home price is hovering around $1 million in many parts of the county, waiting until you have $200,000 sitting in the bank for a down payment simply isn’t realistic for a lot of buyers, even high-income earners.

What I’m seeing instead is buyers becoming more strategic.

They’re using FHA financing.
They’re using VA financing.
They’re negotiating seller credits.

They're assuming VA & FHA loans

They’re getting family help.
They’re buying sooner with less down instead of waiting years while prices continue to rise around them.

And right now, buyers actually have a little more breathing room than they’ve had over the last few years.

Inventory has been slowly increasing across San Diego County, bidding wars have cooled compared to the peak frenzy market, and sellers are becoming more open to concessions again. That shift is creating opportunities many buyers don’t realize exist.

One of the biggest changes nationally has been the rise in FHA and VA loans:
• FHA loans now account for over 24% of purchase loans
• VA loans are at their highest usage levels in more than a decade
• Together, those programs make up more than one-third of all purchase mortgages

That matters here in San Diego, especially with our large military community and the number of first-time buyers trying to figure out how to break into an incredibly expensive market.

And honestly, many buyers are closer than they think.

I talk to people all the time who assume they need:
• perfect credit
• 20% down
• massive savings
• or years more preparation

…when in reality, they may already qualify today with the right strategy and loan program.

Does that mean buying is “easy” right now? No.
San Diego is still one of the most expensive housing markets in the country.

But what has changed is flexibility.

Buyers today have more financing options, more negotiation opportunities, and slightly less competition than we saw during the height of the market.

And in a market like San Diego, where long-term appreciation has historically been incredibly strong, waiting to save another $100,000 while prices continue moving upward doesn’t always create the financial advantage people think it will.

The biggest mistake I see buyers make is assuming they can’t buy before they’ve actually had a real conversation with a lender.

You may not need as much down as you think.
You may qualify for programs you didn’t know existed.
And you may be closer to homeownership than you realize.