Housing & Community Development Services
Down Payment and Closing Cost Assistance
Overview
Low-income, first-time homebuyers may qualify for a low-interest, deferred payment loan of up to 17% of the purchase price for down payment assistance and 4%, up to $10,000 in closing costs assistance.
For more detailed financial information about the program, please see DCCA/Cal Home Program Overview.
Overview
- The loan funds must be used to pay a down payment and closing costs on the purchase.
- The home you buy must be your primary residence.
- The purchase price may not exceed $485,000 for attached homes or $622,250 for detached homes, subject to periodic adjustments.
- Qualified buyers’ family income must not exceed 80 percent of the San Diego County Area Median Income, also called the AMI.
- You will need to contribute a minimum of three percent of the purchase price.
- You must not have owned a home in the last three years.
- There are no payments on the loan until you refinance, sell, pay off the first mortgage, or no longer occupy the property as your primary residence.
- Your loan repayment will be made in one payment that equals the original principal loan amount plus any accrued interest.
- You should talk to a lender (see participating lender list) about your ability to qualify for a mortgage.
- Before you can use this program, you will need to complete an educational class provided by one of these organizations: CalHome/ HUD-approved Homebuyer Education Providers.
Eligible Property
- You may be able to use this program to buy a new or resale single-family home, condominium, townhome or a manufactured home on a permanent foundation.
- The home you purchase must be in an unincorporated area of San Diego County or in the city of Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach or Vista. For all other cities, please contact the appropriate agency for more information.
- Before your loan can be approved, your new house will be inspected to ensure required standards are met. Please see Before the Inspection.
How to Apply
- The County of San Diego has partnered with the San Diego Housing Commission (SDHC) to administer the Downpayment and Closing Cost Assistance (DCCA) Program. For more information please visit SDHC.
Cal HFA MyHome Assistance Program
MyHome Assistance Program
Program Eligibility | Interest Rate | Homebuyer Education | How to Apply
FHA: MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3.5% of the purchase price or appraised value to assist with down payment and/or closing costs, with a cap of $11,000.
USDA, Conventional: MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3% of the purchase price or appraised value to assist with down payment and/or closing costs, with a cap of $11,000.
VA: MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3% of the purchase price or appraised value to assist with down payment and/or closing costs.
Note that the $11,000 cap does not apply to school employees and fire department employees, or those purchasing new construction homes, manufactured homes, or homes with ADUs Review the sections below to find out more about the MyHome program.
Review the sections below to find out more about the MyHome program.
MyHome Assistance Program
Program Eligibility
Am I eligible to apply for this program?
Review the guidelines below for both “Borrower” and “Property” Requirements to determine if you may be eligible to apply for the MyHome Assistance Program.
Borrower Requirements
- Be a first-time homebuyer. See the definition of a first-time homebuyer.
- Occupy the property as a primary residence; non-occupant co-borrowers are not allowed.
- CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
- Meet CalHFA income limits for this program.
*In the case of conflicting guidelines, the lender must follow the more restrictive.
Property Requirements
- Be a single-family, one-unit residence, including approved condominium/PUDs
- Guest houses, granny units and in-law quarters may be eligible
- Manufactured housing is permitted
- Condominiums must meet the guidelines of the first mortgage
- There is a five acre maximum on the size of the property
*In the case of conflicting guidelines, the lender must follow the more restrictive.
MyHome Assistance Program
Interest Rate
What is the interest rate?
Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a CalHFA-approved loan officer to receive an accurate rate quote for this program.
CalHFA does not lend money directly to consumers. CalHFA works through and uses approved lenders to qualify consumers and to make all mortgage loans. The fees you pay could be different depending on the lender and the program. View sample Annual Percentage Rates (APRs) here.
MyHome Assistance Program
Homebuyer Education Requirement
CalHFA firmly believes that homebuyer education and counseling is critical to the success and happiness of a homeowner, and requires homebuyer education and counseling for first-time homebuyers using a CalHFA program.
Who has to take this Homebuyer Education and Counseling course?
Only one occupying first-time borrower on each loan transaction.
How do I take this education and counseling course?
- ONLINE: eHome's eight-hour Homebuyer Education and Counseling course is the only online course accepted by CalHFA. (fee: $99) Other online courses like Frameworks are not acceptable because they do not provide a one-hour, 1-on-1 counseling follow-up session.
- IN-PERSON or VIRTUAL: Live Homebuyer Education and Counseling in-person or virtually though NeighborWorks America or any HUD-Approved Housing Counseling Agency
(fee: varies by agency)
The San Diego Housing Commission (SDHC) offers deferred loans, homeownership grants, and mortgage credit certificates to help low- and moderate-income families buy their first homes.
The SDHC First-Time Homebuyer Program* can assist with the purchase of a single-family home, townhome or condominium in the City of San Diego.
This program is funded primarily through Federal U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program grants to the City of San Diego that are administered by SDHC.
Additional funding sources include Federal Community Development Block Grant funds, State CalHome Program funds, and City of San Diego Affordable Housing Funds.
Since 1988, SDHC has helped more than 5,800 families and individuals buy their first homes.
*SDHC First-Time Homebuyer Program loans and grants cannot be used in conjunction with the Affordable For-Sale Housing Program.
In addition, SDHC administers the County of San Diego’s First-Time Homebuyer Down Payment and Closing Cost Assistance Program. This County Department of Housing and Community Development Program serves the unincorporated areas of the county as well as the cities of:
- Carlsbad
- Coronado
- Del Mar
- Encinitas
- Imperial Beach
- La Mesa
- Lemon Grove
- Poway
- San Marcos
- Santee
- Solana Beach
- Vista
The City of San Diego and County of San Diego first-time homebuyer programs have different eligibility requirements and features.
| Program | Funding Availability as of June 1, 2020 |
|---|---|
| City of San Diego Down Payment & Closing Cost Assistance | Funds available |
| City of San Diego Closing Cost Forgivable Loan | Funds available |
| City of San Diego Mortgage Credit Certificate | None available. No funding is anticipated in 2020. |
| County Of San Diego Down Payment & Closing Cost Assistance | Funds available |
Apply for the SDHC (City) or County of San Diego First-Time Homebuyer Programs
- Review San Diego’s Area Median Income (AMI) limits to confirm your household annual gross income (before taxes) does not exceed the limit for your family size. This includes the income of all adult household members.
- Review the program descriptions and guidelines.
- Contact a loan officer from our Participating Lender list. The loan officer will be the primary point of contact from pre-approval to loan closing. The loan officer collects all required documentation and submits the application on the borrower’s behalf to SDHC.
- Attend a Homebuyer Education Course with an SDHC approved provider.
- Work with a real estate agent to find a property.
City of San Diego
3% Interest, Deferred-Payment Loan Program
Eligible buyers earning no more than 80 percent of San Diego’s AMI may qualify for a deferred-payment, second trust deed loan of up to 17 percent of the purchase price, with the interest rate set at 3 percent.
No payments are required for 30 years, unless the owner sells or no longer occupies the home as a primary residence, at which time the principal balance, including accrued interest, must be repaid.
To qualify, the buyer must obtain a fixed-rate first trust deed loan; have adequate income, a good credit rating; and provide a minimum down payment of 3 percent. Applicants also must attend a homebuyer education class.
Homeownership Grant Program
Buyers earning no more than 80 percent of San Diego’s AMI are eligible for closing cost assistance of up to 4 percent of the purchase price, not to exceed $10,000.
Homeownership Grant funds for closing cost assistance will be forgiven at escrow closing. May only be applied for in conjunction with the 3% Interest, Deferred-Payment Loan Program.
Closing Cost Forgivable Loan Program
Buyers earning no more than 100 percent of San Diego’s AMI are eligible for closing cost assistance of up to 4 percent of the purchase price, not to exceed $10,000.
Assistance is forgiven at the end of 6 years as long as the property remains owner occupied and there are no further encumbrances.
Mortgage Credit Certificate – Program funding will not be available in 2020
Qualified homebuyers with income not exceeding 140 percent of San Diego’s AMI may claim a Federal income tax credit of 20 percent of the annual interest paid on their mortgage. The tax credit is a dollar-for-dollar reduction in the homebuyer’s Federal tax liability that increases the household income available to qualify for a mortgage loan and make monthly mortgage payments. Buyers may be subject to a recapture tax if they sell the home within the first nine years.
County of San Diego
Eligible families with incomes at or below 80 percent of AMI may apply for a 3 percent interest, deferred-payment loan of up to 17 percent of the purchase price for down payment plus up to 4 percent of the purchase price for closing costs to purchase a single-family home, townhome or condominium in one of the County of San Diego program areas.
All buyers interested in applying for assistance under the County of San Diego program must apply through an SDHC-approved lender.
Forms & Documents
3% Interest Deferred Payment Loan Program Guidelines (County of San Diego)
Mortgage Credit Certificate Information Pack
Thinking about buying a home? We have information that can help! Got questions? Talk to one of our housing counselors!
Need Help?
1. Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, downpayment and the interest rate.
2. Know your rights
- Fair Housing: Equal Opportunity for All - brochure
- Real Estate Settlement Procedures Act (RESPA)
- Borrower's rights
- Predatory lending
3. Shop for a loan
- Looking for the best mortgage: shop, compare, negotiate - brochure
- Let FHA help you
- Learn about interest only loans
4. Learn about homebuying programs
- Homebuying programs in your state
- Let FHA help you (FHA loan programs offer lower downpayments and are a good option for first-time homebuyers!)
- HUD's special homebuying programs
- Good Neighbor Next Door (formerly known as Teacher/Officer/Firefighter Next Door)
- Homeownership for public housing residents
- Indian Home Loan Guarantee Program (Section 184)
5. Shop for a home
- Wish list - what features do you want?
- Home-shopping checklist? take this list with you when comparing homes
- Homes for sale (including HUD homes)
- Fixer-Uppers - home purchase and repair programs
- Manufactured (mobile) homes
- Shopping for a Home FAQ’s
6. Make an offer
7. Get a home inspection
8. Shop for homeowners insurance
9. Sign papers You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!
