Hey there! Navigating the path to homeownership can feel overwhelming, but don’t worry—I’m here to help simplify things for you. Let’s chat about a fantastic opportunity that could make your dream of owning a home in San Marcos a reality.

Program Overview

Program Name: County of San Diego’s First-Time Homebuyer Down Payment and Closing Cost Assistance Program

Source of Funding: This program is funded by the County of San Diego and administered in partnership with the San Diego Housing Commission (SDHC).

Learn more here.

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a home in the last three years.
• Income Limit: Your household income should be at or below 80% of the Area Median Income (AMI) for San Diego County. For example, as of January 2024, this means an income of $77,200 or less for a single individual, up to $110,250 for a family of four. Check income limits here.
• Personal Contribution: You’re required to contribute at least 3% of the purchase price from your own funds.
• Primary Residence: The home you purchase must be your primary residence.
• Homebuyer Education: Completion of a homebuyer education class through a HUD-approved provider is mandatory.

Benefits

• Down Payment Assistance: Receive a low-interest (3% simple interest), deferred-payment loan of up to 22% of the purchase price to help with your down payment.
• Closing Cost Assistance: Get up to 4% of the purchase price (not exceeding $10,000) to cover closing costs.
• Deferred Payments: No payments are required on the assistance loan until you sell, refinance, pay off the first mortgage, or no longer occupy the property as your primary residence.

Potential Drawbacks

• Loan Repayment: The assistance provided is a loan, not a grant. This means you’ll need to repay the original loan amount plus any accrued interest when you sell, refinance, or move out of the home.
• Property Restrictions: The home must be located within specific areas, including the unincorporated areas of San Diego County or participating cities such as San Marcos. Check location eligibility.

Application Process

1. Consult a Participating Lender: Begin by discussing your mortgage qualification with a lender approved by the SDHC.
2. Meet Program Requirements: Ensure you can provide the necessary personal contribution and complete the required homebuyer education course.
3. Application Submission: Your loan officer will handle the application process for the down payment and closing cost assistance on your behalf.

Program Type

This initiative offers both down payment and closing cost assistance in the form of a deferred-payment loan.

Availability

The program is currently active and accepting applications, subject to funding availability.

Geographic Availability

This program is available to first-time homebuyers purchasing a home within the unincorporated areas of San Diego County and participating cities, including San Marcos.

Check details here.

Embarking on the journey to homeownership is a significant step, but with programs like this, the process becomes more accessible. If you think this assistance aligns with your needs, reaching out to a participating lender is a great first move. Remember, you’re not alone on this path—there are resources and people ready to support you every step of the way.