Dreaming of owning a home in sunny San Diego? The San Diego Housing Commission (SDHC) offers a range of First-Time Homebuyer Programs designed to make that dream a reality for low- and moderate-income families. If you’re exploring options for What Time In San Diego is best to buy a home (and we know timing is important!), understanding these programs is your first step. While we can’t control the clock, we can help you understand how to access financial assistance to purchase your first home in the City of San Diego, surrounding County areas, and cities like Chula Vista and El Cajon.
Discovering SDHC First-Time Homebuyer Assistance
The SDHC First-Time Homebuyer Program is structured to provide crucial support in purchasing your first single-family house, townhome, or condominium within the City of San Diego. For eligible homebuyers whose income is no more than 80 percent of San Diego’s Area Median Income (AMI), the program offers a significant advantage: a deferred-payment, second trust deed loan. This loan can cover up to 25 percent of the home’s purchase price, featuring a manageable 3 percent interest rate.
These valuable programs are primarily supported by federal grants from the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program, allocated to the City of San Diego and expertly managed by SDHC. Further bolstering these efforts are additional funds from federal Community Development Block Grant sources, the State CalHome Program, and City of San Diego Affordable Housing Funds.
Since its inception in 1988, SDHC has proudly assisted over 6,000 families and individuals in achieving the milestone of first-time homeownership.
It is important to note that SDHC First-Time Homebuyer Program loans and grants cannot be combined with the Affordable For-Sale Housing Program.
Beyond the City of San Diego, SDHC extends its assistance to neighboring jurisdictions through distinct programs tailored to their specific needs.
Program Options and Guidelines Across San Diego County
Each first-time homebuyer program administered by SDHC has its own set of eligibility criteria and program specifics. Below is a breakdown of the programs available in different areas:
City of San Diego Low-Income Program (<80% AMI) (ZIP Codes starting with 921)
| Feature | Details |
|---|---|
| Available Assistance | Deferred-payment Loan for down payment: Up to 25% of the purchase price, not exceeding $125,000. Grant for closing costs (forgiven): 4% of the purchase price, up to $10,000. |
| Interest Rate | 3% Simple Interest |
| Income Limit | 80% of San Diego’s Area Median Income (For forgivable closing cost grants, the maximum income is 100% of AMI). |
| Maximum Purchase Price | Attached: $603,250 Detached: $1,030,750 Effective December 2022 |
| Funding Availability | Limited Funding. Remaining funds allocated on a first-come, first-served basis. Applicants must be under contract to apply. (as of November 6, 2024) |
| Additional Information | Program Guidelines |
| Additional Terms | No payments for 30 years unless the home is sold or no longer the primary residence, at which point the principal and accrued interest are due. Requires a fixed-rate first trust deed loan, adequate income, good credit, minimum 1% down payment (max 20%), and completion of a homebuyer education class and pre-purchase counseling. |
County of San Diego Low-Income Program (<80% AMI) (12 cities and unincorporated areas)
| Feature | Details |
|---|---|
| Available Assistance | Deferred-payment Loan for down payment: Up to 22% of the purchase price. Loan for closing costs: 4% of the purchase price, up to $10,000. |
| Interest Rate | 3% Simple Interest |
| Income Limit | 80% of San Diego’s Area Median Income |
| Maximum Purchase Price | Attached: $698,000 Detached: $698,000 Effective September 2024 |
| Funding Availability | Funds Available (as of February 1, 2024) |
| Additional Information | Program Guidelines (Low-Income, 80% AMI) |
| Additional Terms | No payments for 30 years unless the home is sold or no longer the primary residence, at which point the principal and accrued interest are due. Requires a fixed-rate first trust deed loan, adequate income, good credit, minimum 3% down payment, and completion of a homebuyer education class and pre-purchase counseling. See guidelines for participating cities. |
City of Chula Vista Program
| Feature | Details |
|---|---|
| Available Assistance | Deferred-payment Loan: Up to 22% of the purchase price—not exceeding $120,000—for down payment and closing costs. |
| Interest Rate | 3% Simple Interest |
| Income Limit | 80% of San Diego’s Area Median Income |
| Maximum Purchase Price | Attached: $698,000 Detached: $698,000 Effective September 2024 |
| Funding Availability | Funds Available (as of February 1, 2024) |
| Additional Information | Program Guidelines |
| Additional Terms | No payments for 30 years unless the home is sold or no longer the primary residence, at which point the principal and accrued interest are due. Requires a fixed-rate first trust deed loan, adequate income, good credit, minimum 3% down payment, and completion of a homebuyer education class and pre-purchase counseling. |
City of El Cajon Program
| Feature | Details |
|---|---|
| Available Assistance | Deferred-payment Loan: Up to 25% of purchase price—not exceeding $150,000 for single-family homes and townhomes OR $100,000 for condominiums—for down payment and closing costs. |
| Interest Rate | Shared Equity (see Program Guidelines) |
| Income Limit | 80% of San Diego’s Area Median Income |
| Maximum Purchase Price | Attached: $698,000 Detached: $698,000 Effective September 2024 |
| Funding Availability | Funds Available (as of February 1, 2024) |
| Additional Information | Program Guidelines |
| Additional Terms | No payments for 30 years unless the home is sold or no longer the primary residence, at which point the principal and accrued interest are due. Requires a fixed-rate first trust deed loan, adequate income, good credit, minimum 2% down payment, and completion of a homebuyer education class and pre-purchase counseling. |
How to Apply for First-Time Homebuyer Programs
Ready to take the next step? Here’s how to apply for the SDHC First-Time Homebuyer Programs:
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Connect with a Participating Lender: Begin by contacting a loan officer from the Participating Lender List. This loan officer will guide you through the process, from pre-approval to closing. They will also collect necessary documents and submit your application to SDHC on your behalf.
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Verify Your Income: Check San Diego’s Area Median Income (AMI) limits to ensure your household’s total annual gross income (before taxes) does not exceed the limit for your family size. Remember to include income from all adult household members.
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Review Program Guidelines: Familiarize yourself with the specific program guidelines for your desired jurisdiction (City of San Diego, County of San Diego, etc.). These guidelines are available under “Forms and Documents” below.
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Complete a Homebuyer Education Course: Attend a Homebuyer Education Course with an SDHC-approved provider. This course is a crucial step in preparing you for homeownership.
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Find Your Home: Partner with a real estate agent to begin your search for the perfect property in San Diego.
Essential Forms & Documents
For more detailed information and to start your application process, refer to these essential documents:
- City of San Diego Guidelines (Low-Income, <80% AMI)
- County of San Diego Guidelines (Low-Income, 80% AMI)
- City of Chula Vista Guidelines
- City of El Cajon Guidelines
- Area Median Income Chart
- FTHB Program Summary Chart
- Approved Home Inspectors
- Homebuyer Education and Pre-Purchase Counseling Providers
- Participating Lenders
Embarking on the journey to homeownership in San Diego is an exciting step. With the support of the SDHC First-Time Homebuyer Programs, achieving your dream of owning a home is within reach. Explore the program options, connect with a participating lender, and take the first step towards your future home today!
