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First-time Homebuyer Program

Who is Eligible?

SDHC's primary program is limited to those planning to buy a home within the City of San Diego, or neighorhoods with postal ZIP codes that begin with 921. “First-time homebuyer” is defined as someone who has not owned a home that served as a primary residence for at least three years. Each homebuyer program has limits on annual household income and the purchase price of a home.

Area Median Income (AMI)

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

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 AMI are eligible for up to $15,000 or 4 percent of the purchase price whichever is less. Households whose earnings are no greater than 100 percent of the AMI 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 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.

Please Note: We have temporarily run out of Mortgage Credit Certificates for low income and non-targeted census tracts; however, we are in the process of applying for a new allocation of Mortgage Credit Certificates that will fund low income, targeted and non-targeted census tracts. We expect to have our new allocation in May 2013. For more information, please call Melissa Holt at (619) 578-7492.

Mortgage Credit Certificate Guidelines

First-time Homebuyer Program

Who is Eligible?

3% Interest Deferred Payment Loan

Grant for Closing Costs

Mortgage Credit Certificate

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