San Diego Is Still a Seller's Market. Here's How Self-Employed Buyers Compete.

San Diego County is still a seller’s market. Redfin’s August report shows the median home sold in 28 days, more than a third of sales closed above asking price, and active listings were down 5.6% from a year earlier. The California Association of Realtors put the county median at $1.09 million, up 6.3% year over year, with sales down 8.4%.

The three sources I checked don’t agree on the exact median, and that’s normal. Redfin shows a median near $962,000, up 5.7%. The Greater San Diego Association of Realtors shows detached homes at $1.12 million, up 4.7%, with detached inventory down 20.7%. Each one counts homes differently. They all point the same way, though. Prices are up, fewer homes are selling, and supply is thin.

The number most coverage skipped

Here’s the part none of those reports mention. San Diego County’s 2026 conforming loan limit for a single-family home is $1,104,000. The C.A.R. median sits about $14,000 under that line.

That matters more than it sounds. Up to the limit, a loan can follow Fannie Mae and Freddie Mac rules. Above it, you’re in jumbo territory, and jumbo lenders write their own guidelines. For self-employed borrowers, jumbo programs often want two full years of tax returns, more reserves and a closer look at the business. So a typical San Diego buyer who adds a nicer kitchen or a bigger lot to their wish list can cross from one rulebook into a stricter one without realizing it.

How a pre-approval falls apart three days before closing

This is the call I get more than any other. Here’s a hypothetical version of it.

A San Diego business owner gets pre-approved for $1.2 million at a big bank. The loan officer looked at a credit report and a stated income number. Nobody ran the tax returns through jumbo guidelines. She finds a house, wins it over two other offers, and opens escrow.

Two or three weeks later, days before closing, underwriting finally reads the returns. Her CPA did his job and wrote off everything legitimate, so net income on paper is a fraction of what she actually earns. The underwriter declines the loan.

Now she has a seller who won’t wait, a deposit on the line and an agent who’s panicking. That’s usually when people start searching online at midnight and find me.

Sometimes a file like that can move to a bank statement program fast, because that program qualifies income from 12 or 24 months of deposits instead of the net line on a return. My team and I have done it. But it’s a rescue, and rescues are stressful for everyone involved. Nobody can promise it closes on the original date. The whole thing was avoidable if someone had read the returns at the start.

In my experience this happens most at large retail banks, where the person writing the pre-approval isn’t the person who underwrites it. That’s not every bank. It’s a pattern I see often enough to warn you about.

The opposite mistake

The fix isn’t “every self-employed buyer needs a bank statement loan.” Plenty of loan officers hear “self-employed” and jump straight there. That’s lazy too.

Bank statement loans usually carry a higher rate than conventional loans. If your tax returns can support the loan, you should know that before you pay more. Both Fannie Mae and Freddie Mac can sometimes accept just one year of tax returns from a self-employed borrower, typically when the automated underwriting approval allows it and the business has been operating at least five years. Adding back depreciation and other non-cash deductions can also raise your qualifying income more than people expect.

The right order is simple. Read the returns first. If they work, use them. If they don’t, then look at bank statements.

What I’d do before touring in San Diego

1. Find out which side of $1,104,000 your loan amount lands on. That decides which rulebook applies.
2. Have your tax returns reviewed by someone who underwrites self-employed files. A credit pull and a stated income number is not a review.
3. Ask what your second option is if the returns come up short. Know it before you’re under contract.
4. Run your full payment, including property taxes and insurance, and set your ceiling while you’re calm.

A pre-approval should hold up when an underwriter reads it. In a market where homes go under contract in a month, that’s the difference between keeping the house and losing it.

I’m a licensed loan officer who works with borrowers all over California, including San Diego County. If you’re self-employed and thinking about buying, call me before you start touring. I’ll go through your returns first and tell you plainly which path fits. Programs, rates and approval depend on your full file.

Sources: California Association of Realtors August 2026 report (opens in a new tab), Redfin San Diego County August 2026 (opens in a new tab), Greater San Diego Association of Realtors via sdhousingmarket.com (opens in a new tab), 2026 California conforming loan limits (JVM Lending) (opens in a new tab).