Learn more about the First-Time Homebuyer Program in San Diego

Buying a home for the first time can be a challenging process, especially for low- or moderate-income families. However, the San Diego Housing Commission (SDHC) offers financial assistance programs to make the path to homeownership easier. These programs are designed to provide deferred-payment loans and grants, making home purchases more accessible.

How Does the SDHC First-Time Homebuyer Program Work?

The SDHC First-Time Homebuyer Program is available for the purchase of single-family homes, townhomes, or condominiums within the City of San Diego. Eligible buyers can receive a deferred-payment loan for up to 25% of the purchase price of the home, with an interest rate set at 3%.

The program is intended for buyers whose income does not exceed 80% of the Area Median Income (AMI) in San Diego, and is primarily funded through grants from the HOME Investment Partnerships Program of the U.S. Department of Housing and Urban Development (HUD). It also includes funding from local and state sources, such as the CalHome program.

Since 1988, more than 6,000 families and individuals have been assisted by SDHC in purchasing their first home through these programs.

Other SDHC Programs for Neighboring Jurisdictions

In addition to the program for the City of San Diego, SDHC administers financial assistance programs for homebuyers in various neighboring jurisdictions. These programs include:

• County of San Diego Down Payment and Closing Cost Assistance Program: Serves unincorporated areas of the county and cities such as Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach, and Vista.

• First-Time Homebuyer Programs in Chula Vista and El Cajon: These programs offer similar assistance, with deferred loans and grants available to help buyers cover upfront costs.

Program Requirements and Eligibility

To qualify for SDHC programs, buyers must meet the following requirements:

1. Income: The household’s annual gross income must not exceed 80% of the Area Median Income (AMI) for the city or county where the property is being purchased. The income of all adult household members is considered.

2. Down Payment and Fixed-Rate Loan: The buyer must provide a down payment of at least 1% to 20% and obtain a fixed-rate loan as the first deed of trust.

3. Education and Counseling: Buyers must attend an SDHC-approved homebuyer education course and receive pre-purchase counseling.

4. Creditworthiness: A good credit score is required to qualify for the programs.

Income Limits and Financial Assistance

Below are the income limits and assistance available under SDHC programs:

For homebuyers in the City of San Diego, the deferred-payment loan can cover up to 25% of the purchase price, with a maximum of $125,000. In addition, buyers may receive a grant of up to $10,000 for closing costs. No payments are required on the loan for 30 years, unless the homeowner sells the property or no longer occupies it as their primary residence.

Specific Programs for Chula Vista and El Cajon

The programs in Chula Vista and El Cajon offer similar terms but with some specific differences:

• Chula Vista: The loan can cover up to 22% of the purchase price, not exceeding $120,000.

• El Cajon: The loan can cover up to 25% of the purchase price, with a maximum of $150,000 for single-family homes and townhomes, or $100,000 for condominiums.

How to Apply for the Homebuyer Programs

If you want to apply for these programs, follow these steps:

1. Contact a Loan Officer: Select a loan officer from the list of participating lenders who will guide you through the process from pre-approval to closing.

2. Verify Income Eligibility: Ensure your household income meets the AMI limits.

3. Attend an Education Course: Complete the SDHC-approved homebuyer education course.

4. Work with a Real Estate Agent: Find the right property with the help of a real estate agent.

Conclusion

Thanks to the San Diego Housing Commission, homeownership is within reach for low- and moderate-income families. If you’re interested in purchasing your first home, these programs could be the perfect resource to help you take that big step.

See more information at: SDHC