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San Diego Citywide First-time Homebuyer Program

Applicants may only purchase a home within the boundaries of the city of San Diego. Households to be assisted are low to moderate income.

Area Median Income (AMI)

Assistance offered under this program includes:

3% Interest Deferred Payment Loan

Eligible buyers earning no more than 80 percent AMI may qualify to receive a "3% Interest Deferred Payment" loan of up to 17 percent of the purchase price. No payments are required for 30 years, unless you sell or refinance the home, at which time you are required to pay back the principal and the accrued interest. To qualify, you must obtain a fixed-rate first trust deed loan and have adequate income, a good credit rating, and provide a minimum down payment of 3 percent. Applicants also must attend a homebuyer education class.

3% Interest Deferred Payment Loan Guidelines

Grant for Closing Costs

Grants are available to help homebuyers pay closing costs. Households whose earnings are no greater than 80 percent of the Area Media Income are eligible for up to $15,000 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 it is forgiven.

Closing Cost Grant Guidelines

Mortgage Credit Certificate

Qualified homebuyers with income not exceeding 140 percent of AMI may claim a federal income tax credit of either 15 percent or 20 percent of the annual interest paid on their mortgage for as long as they reside in the home. The resulting reduction in tax burden increases buyers’ net earnings and helps them qualify for a mortgage. Homebuyers may have to repay the tax if they sell their residence within nine years.

Mortgage Credit Certificate Guidelines

San Diego Citywide First-time Homebuyer Program

3% Interest Deferred Payment Loan

Grant for Closing Costs

Mortgage Credit Certificate

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