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Ready to buy a House? Here is the San Diego Down Payment and Closing Cost Assistance Overview

Worried that you can’t afford a down payment on a home? Or concerned about making the Closing Costs for your purchase – Here’s some good news: If you’re a first-time or Low – and moderate – income homebuyer, you might qualify for down payment, or Closing Cost assistance. The County of San Diego has partnered with the San Diego Housing Commission (SDHC) to administer the Downpayment and Closing Cost Assistance (DCCA) Program.

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.

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 in San Diego County.

*SDHC First-Time Homebuyer Program loans and grants cannot be used in conjunction with the Affordable For-Sale Housing Program.

The San Diego Down payment assistance (DPA) helps homebuyers with grants or low-interest loans that reduce the amount they need to save for a down payment. 

Low – and moderate – 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 the San Diego 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 in San Diego County.
  • 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 in San Diego County.
  • 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.

Lenders

  • To become a participating lender, please see the San Diego SDHC Lenders site.
    A CalHFA approved Lender will qualify you for a home loan – or contact
  • Berj Arakelian from USA MORTGAGE an approved CALHFA Down Payment Assistance Professional https://homesinsdcounty.com/get-prequalified/ -Email:  [email protected] Direct: (858) 449-0514 NMLS: 1695267
  • For more information, please contact: The San Diego Housing Commission First Time Homebuyer Program staff – email.
  • To participate, in the County of San Diego’s DCCA Program, you must first apply for and obtain a first trust deed loan approval through one of the mortgage lenders pre-approved by SDHC.

    The City of San Diego and County of San Diego first-time homebuyer programs have different eligibility requirements and features.

PROGRAM OVERVIEW

Effective August 11, 2020

Buyer:

  • You must occupy the property as your primary place of residence.
  • You must contribute a minimum of three percentof the purchase price from your own funds.
  • You must not have owned a home or been on title of a home within the last three years.
  • You must complete a HUD/CalHome Approved Homebuyer Education class.
  • The total gross annual income of the entire household must not exceed 80 percent of the San Diego County Area Median Income (AMI).
  • You must receive the maximum first mortgage loan for which you qualify. DCCA/CalHome loan cannot exceed 17 percent of total purchase price. Plus 4 percent up to $10,000 for closing costs. 

Property Guidelines:

  • The property must be located within the DCCA / CalHome jurisdictional boundaries.
  • The property may be a new or resale single-family detached unit, condominium, townhouse or a manufactured home on a permanent foundation.
  • The purchase price may not exceed $485,000 for attached homes or $622,250 for detached homes, subject to periodic adjustments.
  • The property must be vacant or occupied by the seller/owner, or the DCCA/CalHome applicant; and must not have been vacated by the previous renters within the last 30 days.
  • The property must be free from any health & safety defects and lead-based paint hazards. Prior to final loan approval, a Housing Quality Standards (HQS) inspection will be conducted to verify condition of property. Proof of initial building permit issuance must be provided.
  • Occupancy Ratio: No more than 2 people per living space (living space includes bedrooms, living room, family room, den/study).
  • You must obtain flood insurance if the property is located in a flood plain.

DCCA/CalHome Jurisdictional Areas Includes:

  • The unincorporated areas of the County of San Diego and the cities of: Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach and Vista. Please see County of San Diego DCCA Jurisdiction.

Loan Terms:

  • The maximum DCCA/CalHome loan amount is up to 17% of the purchase price for down payment assistance and 4%, up to $10,000 in closing costs assistance.
  • No monthly payments are required.
  • The interest is accrued annually at 3 percent simple interest per year.
  • Repayment is deferred until the borrowers refinance (except an FHA Streamline), sell, pay off the first mortgage, or no longer occupy the property as their primary residence. The loan repayment will be one payment of the original principle loan amount plus any accrued interest.
  • Prohibited loans and terms: Negative–Amortization; Stated Income; Adjustable Rate Mortgage (ARM); Interest-Only Loans; and, if the Front-End Ratio is below 30 percent or over 38 percent, the Back-End Ratio is over 45 percent.

How to Apply:

  • The County of San Diego has partnered with the San Diego Housing Commission (SDHC) to administer the Downpayment and Closing Cost (DCCA) Program. To participate in the County of San Diego’s DCCA program, you must first apply for and obtain a first trust deed loan approval through one of the mortgage lenders pre-approved by SDHC.
  • A complete list of mortgage lenders pre-approved by SDHC is at: First Time Homebuyers Approved Lender List.

The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You should not act or refrain from acting on the basis of any content included in this site without seeking legal or other professional advice.

SEE ALSO SAN DIEGO FIRST TIME HOMEBUYER DOWN PAYMENT AND LOAN ASSISTANCE PROGRAMS
https://homesinsdcounty.com/real-estate-blog/san-diego-first-time-homebuyer-down-payment-and-loan-assistance-programs/

REAL ESTATE GLOSSARY FOR THE FIRST TIME HOMEBUYER
https://homesinsdcounty.com/real-estate-blog/real-estate-glossary-for-the-first-time-homebuyer/

Make sure to Look up Homes in San Diego County – Karen and Brad Mattonen when looking for ” real estate companies near me or real estate agents near me

To get More information on the Many Frist Time Home Buyer programs here in San Diego County, and how we can help you find the Home of your dreams contact Brad or Karen Mattonen = Your San Diego First Time Home Buyer Real Estate Specialist
bm[email protected]
858.518.2875

For approved lenders A CalHFA approved Lender will qualify you for a home loan – or contact
Berj Arakelian from USA MORTGAGE an approved CALHFA Down Payment Assistance Professional https://homesinsdcounty.com/get-prequalified/ -Email:  [email protected]
Direct: (858) 449-0514
NMLS: 1695267