San Diego County
Down payment and Closing Cost Program
The County of San Diego offers low-interest deferred payment loans of up to $70,000 or 33% of the purchase price, whichever is less, for low-income first-time homebuyers. The loan funds may be used to pay down payment and closing costs on the purchase of a new or re-sale home. Properties eligible for assistance include single-family homes, condominiums, townhomes and manufactured homes on a permanent foundation. The appraised value of the property may not exceed $451,250 for a single-family detached residence, $312,000 for a re-sale condominium/townhome, or $377,000 for a new condominium/townhome purchase. Participants must contribute a minimum of one percent of the purchase price from their personal funds.
The total gross annual income of the entire household must not exceed 80% of the San Diego County Area Median Income AMI.
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.
First-Time Homebuyer Assistance
First-time homebuyers are San Diegans who have not owned a home in the past three years. They must also meet income-eligibility requirements.
3% Interest, Deferred-Payment Loan – Buyers earning no more than 100 percent of the San Diego area median income 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; 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 and a good credit rating; and provide minimum down payment of 3 percent.
Closing Cost Assistance Grant – Buyers earning no more than 80 percent of the San Diego area median income are eligible for up to $15,000 of 4 percent of the purchase price, whichever is less. Buyers earning up to 100 percent of the area median income are eligible for up to $10,000 or 4 percent of the purchase price, whichever is less. Grants must be repaid if the home is sold, refinanced or no longer owner-occupied within the first six years, after which they are forgiven.
Mortgage Credit Certificate – Qualified homebuyers with income not exceeding 140 percent of San Diego area median income may claim a federal income tax credit. Buyers earning 80 percent of San Diego’s area median income or less o buying in a specified neighborhood may claim a tax credit of 20 percent of the annual interest paid on their mortgage; all other buyers receive a tax credit of 15 percent. The reduced tax burden helps the buyer qualify for a mortgage because it boosts net earnings. Buyers may have to repay the tax if they sell the home within the first nine years.