Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to figure out how to afford that hefty down payment and those pesky closing costs. But don’t worry—if you’re a first-time homebuyer in San Diego County, there’s a fantastic program designed to give you a helping hand.

Program Details

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).

Eligibility Criteria

• First-Time Homebuyer Status: You must not have owned a home in the last three years.
• Income Limits: Your household income should be at or below 80% of the San Diego County Area Median Income (AMI). For example, as of January 2024, that’s $77,200 or less for a single individual and $110,250 for a family of four.
• Primary Residence: The home you purchase must be your primary residence.
• Minimum Contribution: You’re required to contribute at least 3% of the purchase price from your own funds.

Benefits

• Down Payment Assistance: Receive a low-interest, deferred payment loan of up to 22% of the purchase price to help with your down payment.
• Closing Cost Assistance: Get additional assistance covering 4% of the purchase price, up to $10,000, to help with closing costs.
• Deferred Payments: No monthly payments are required on the assistance loan until you sell, refinance, or no longer occupy the property as your primary residence.

Potential Drawbacks

• Repayment Terms: The loan, along with any accrued interest, becomes due when you sell, refinance, or move out of the home.
• Property Location Restrictions: The property must be located in specific areas within San Diego County, including unincorporated areas and certain cities.
• Property Standards: The home must meet certain inspection standards, including termite clearance and, for older homes, lead-based paint assessments.

Application Process

1. Consult a Participating Lender: Begin by contacting a lender approved by the SDHC to discuss your mortgage options and determine your eligibility.
2. Complete Homebuyer Education: Attend a homebuyer education class provided by a HUD-approved agency to prepare for homeownership.
3. Secure Primary Financing: Obtain approval for a first mortgage through your lender.
4. Apply for Assistance: Your lender will submit your application for the down payment and closing cost assistance on your behalf.

Availability

This program is available in the unincorporated areas of San Diego County and the following cities: Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach, and Vista.

Pros

• Reduced Upfront Costs: Significantly lowers the initial financial burden of purchasing a home.
• Deferred Payments: No monthly payments on the loan until you sell, refinance, or move out.
• Closing Cost Help: Assists with a commonly overlooked cost in the home-buying process.

Cons

• Repayment Required: The loan must be repaid upon certain conditions, including selling or refinancing.
• Strict Location Requirements: The home must be located in specific areas within San Diego County.
• Condition Requirements: Homes must meet certain inspection standards, which could add additional costs.

How to Learn More

To explore this program further, visit the San Diego Housing Commission website or contact a participating lender.