Unlock Your Dream Home with Down Payment Assistance

Buying a home in the vibrant communities of San Diego is a major milestone, but coming up with the down payment can often feel like the biggest hurdle. The good news? You don't always need 20% down. There are powerful local and state programs designed to bridge the gap for first-time homebuyers.

As your dedicated local mortgage expert, I, Mike Beal, am here to help you navigate these options. Below is a breakdown of the top down payment assistance programs available right here in San Diego County, as well as statewide California options.

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City of San Diego Housing Commission (SDHC) Programs

If you are looking to purchase a single-family home, townhome, or condominium within the City of San Diego, these programs offer incredible support.

First-Time Homebuyer Low-Income Program

  • Target Audience: Eligible buyers earning no more than 80% of San Diego’s Area Median Income (AMI).

  • Assistance Provided: Qualify for a deferred-payment, second trust deed loan of up to 19% of the purchase price.

  • Closing Costs: Includes a closing cost assistance grant of up to $10,000.

  • Terms: The interest rate is set at a low 3%.

First-Time Homebuyer Middle-Income Program

  • Target Audience: Eligible buyers earning between 80% and 150% of San Diego’s Area Median Income.

  • Assistance Provided: A $40,000 deferred down-payment assistance loan.

  • Closing Costs: Includes a $10,000 closing costs assistance grant.

  • Program Funding: This specific program is funded by a grant from the Wells Fargo Foundation.

  • Key Details: Features a 4% simple interest rate and a maximum purchase price of $1,250,000. Payments are deferred for the first 5 years, and then converted to an amortized loan with fixed monthly payments for 120 months.

  • Forgiveness: The $10,000 closing costs grant is forgiven at the end of 3 years if the property remains owner-occupied.

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San Diego County & Suburb Programs

Expanding your search outside the city limits? Several municipalities within San Diego County offer highly targeted assistance for moderate and low-income buyers.

County of San Diego Moderate-Income Program

  • Target Audience: Buyers earning 80% to 120% of San Diego's Area Median Income.

  • Assistance: Deferred-payment loan for up to 17% of the purchase price for a down payment.

  • Terms: 3% simple interest. No payments are required for 30 years unless the home is sold or is no longer your primary residence.

  • Requirements: Requires a minimum down payment of 3% from the buyer, plus completion of a homebuyer education class and pre-purchase counseling.

City of Chula Vista Program

  • Target Audience: Buyers earning 80% of San Diego's Area Median Income.

  • Assistance: Deferred-payment loan up to 22% of the purchase price (not to exceed $120,000) for down payment and closing costs.

  • Terms: 3% simple interest, with no payments required for 30 years unless the home is sold or is no longer your primary residence.

  • Requirements: Maximum purchase price of $807,500. Requires a minimum 3% down payment from the buyer, plus an education class and counseling.

City of El Cajon Program

  • Target Audience: Buyers earning 80% of San Diego's Area Median Income.

  • Assistance: Deferred-payment loan up to 30% of the purchase price for down payment and closing costs. Maximum limits are $170,000 for single-family homes/townhomes, or $120,000 for condominiums.

  • Terms: 3% simple interest, with no payments required for 30 years unless the home is sold or is no longer your primary residence.

  • Requirements: Maximum purchase price of $698,000. Requires a minimum 2% down payment from the buyer, plus an education class and counseling.

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California Statewide (CalHFA) Programs

In addition to local San Diego grants, California offers robust statewide programs. These can often be paired with primary mortgages to significantly reduce your out-of-pocket costs.

CalHFA MyHome Assistance Program

  • How it Works: Acts as a 3% to 3.5% "silent second" mortgage that accompanies a CalHFA first mortgage.

  • Usage: Funds are strictly for the down payment.

  • Repayment: This loan must be repaid and is not forgivable.

  • Eligibility: Available for FNMA or FHA loans only.

  • FHA Loan Specifics: Covers 3.5% of the down payment with a minimum 640 FICO score , a monthly MI factor of .55 , and a maximum seller concession of 6%.

  • Conventional Loan Specifics: Covers 3% of the down payment with a minimum 680 FICO score , 35% monthly MI coverage , and a maximum seller concession of 3%.

  • Low-Income Conventional (<80% AMI): Covers 3% of the down payment with a minimum 680 FICO score , features a reduced monthly MI coverage of 18% , and allows a maximum 3% seller concession.

CalHFA MyAccess Assistance

  • How it Works: Acts as a 2% to 2.5% "silent third" mortgage that accompanies a CalHFA first mortgage and a MyHome second mortgage.

  • Usage: Can be used for the down payment and/or closing costs.

  • Repayment: This loan must be repaid and is not forgivable.

  • Eligibility: Available for FNMA or FHA loans only.

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Ready to See What You Qualify For?

Navigating AMI limits, FICO requirements, and deferred interest terms can be complicated, but you don't have to do it alone. As your local San Diego mortgage partner, I specialize in matching buyers with the exact programs that fit their financial profiles. Contact me today to schedule a free down payment consultation to see what you qualify for!

At Mike Beal - Liberty National Lending Group, we have qualified professionals that can guide you through the Down Payment Assistance process. Don't let your finances hold you back from homeownership. Contact us today!