The San Diego Housing Commission offers income-qualified first-time homebuyers deferred second mortgages up to 25 percent of purchase price that, combined with a first-position mortgage, help families afford homes in high-cost San Diego City.

There are two kinds of deferred second trust deed loan programs: Shared Appreciation and two Condo Conversion loan programs.

Buyers apply directly to the lender for these programs. (Click here to see rosters of current participating lenders, guidelines and fee schedule.)
 

• Shared Appreciation Program and Condo Conversion programs:

Through these programs, eligible buyers can receive up to 25 percent of the purchase price, in Housing Commission funding through a “silent second” zero-interest loan towards a home. The loan is for 30 years with no payments required until the end of the loan term, at which time the principal is due.

The Shared Appreciation and Condo Conversion programs are similar to each other. With these programs, eligible buyers can get deferred "silent second" loans. The terms are 30 years at zero interest with no payments required during that time as long as you do not sell, transfer ownership, rent the property, refinance it with cash back, or prepay the loan with any other funds. If any of these transactions do take place, you'll be required to share a portion of the property's appreciation (increased value since the original purchase) with the Housing Commission. Buyers are required to attend home buyer education classes.

For more information, see the program guidelines.

Lenders offering any of these deferred trust deed programs may also participate in the Housing Commission’s Down payment/closing cost assistance grant and Mortgage Credit Certificate programs by completing and submitting two simple forms (Lender Participation Agreement and Statement of Quality Commitment) and mailing these forms – along with a copy of the lenders Dept. of California Real Estate license and an annual application fee of $400 (check payable to San Diego Housing Commission) to:

Vicki Monce
San Diego Housing Commission
1122 Broadway, Suite 300
San Diego CA 92101

Upon receipt of your package, Housing Commission staff will contact you.