Hey there! Thinking about buying your first home in San Diego? It can feel like a big leap, but the San Diego Housing Commission (SDHC) has a fantastic program to help make your dream a reality. Let’s break it down together.

Program Name: San Diego Housing Commission (SDHC) First-Time Homebuyer Program

Source of Funding: This program is primarily funded through federal U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program grants, administered by SDHC. Additional funding comes from federal Community Development Block Grant funds, State CalHome Program funds, and the City of San Diego Affordable Housing Funds.
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Eligibility Criteria:

First-Time Homebuyer: You must not have owned a home in the last three years.
Income Limits: Your household income should be at or below 80% of San Diego’s Area Median Income (AMI).
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Credit and Down Payment: A good credit rating is required, and you need to contribute a minimum down payment of 1% of the purchase price.
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Homebuyer Education: Attendance at a homebuyer education class with an SDHC-approved provider is mandatory.
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Benefits:

Deferred-Payment Loan: Eligible buyers can receive a loan of up to 25% of the purchase price (not exceeding $125,000) for the down payment. This loan accrues simple interest at 3%, and no payments are required for 30 years unless you sell or move out.
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Closing Cost Assistance Grant: You may also receive a grant covering up to 4% of the purchase price (up to $10,000) for closing costs. This grant is forgiven at the close of escrow.
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Potential Drawbacks:

Repayment Terms: If you sell the home, transfer the title, rent it out, or no longer use it as your primary residence within 30 years, the loan becomes due, including accrued interest.
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Property Restrictions: The program cannot be used in conjunction with the Affordable For-Sale Housing Program.
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Application Process:

Review Income Limits: Ensure your household income does not exceed the limit for your family size.
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Contact a Participating Lender: Choose a loan officer from SDHC’s Participating Lender list. They will guide you from pre-approval to loan closing.
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Complete Homebuyer Education: Attend a course with an SDHC-approved provider.
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Find a Property: Work with a real estate agent to locate a suitable home within the City of San Diego.
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Submit Application: Your loan officer will collect the necessary documentation and submit your application to SDHC on your behalf.
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Program Availability: This program is available for purchasing single-family homes, townhomes, or condominiums within the City of San Diego.
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Taking the first step toward homeownership is exciting, and with programs like this, it’s more achievable than ever. If you have any questions or need further assistance, feel free to ask!