Program Guidelines & AMI Charts

Down payment/closing costs assistance grants - program guidelines

The down payment/closing cost grant is available to eligible applicants who are in the process of purchasing new or resale homes within the City of San Diego.

This is a “recoverable” grant that can be used towards the down payment, closing costs or combination of the two. (The grant is considered "recoverable" because if you sell or rent the home within the first six years, you have to pay it back. But if you continue to live in the property for at least six years, the money becomes a true grant and does not have to be paid back.)

This program is available in two forms – one for buyers earning 80% or less of the Area Median Income (AMI) and one for those earning 100% AMI. The main difference between the 80% and 100% versions of the program is that those earning 80% AMI or less may qualify for a higher grant amount.

Income limits for these programs are as follows:

80% AMI down payment/closing cost assistance grants
Household size	Maximum annual income
1 Person	$39,300
2 Persons	$44,900
3 Persons	$50,550
4 Persons	$56,150
5 Persons	$60,650
6 Persons	$65,150
7 Persons	$69,650
8 Persons	$74,100

100% AMI down payment/closing cost assistance grants
Household size	Maximum annual income
1 Person	$48,600
2 Persons	$55,500
3 Persons	$62,450
4 Persons	$69,400
5 Persons	$74,950
6 Persons	$80,500
7 Persons	$86,050
8 Persons	$91,600

Following are program guidelines for the 80% and 100% AMI down payment/closing cost grants:

80% AMI down payment/closing cost assistance grants: Up to 6% of the purchase price (not to exceed $15,000). The purchase price can not exceed $375,250 for condominiums or $454,100 for a single family dwelling.

100% AMI down payment/closing cost assistance grants: Up to 4% of the purchase price (not to exceed $10,000). The purchase price can not exceed $454,100.

The grant must be paid back if the home is sold, leased or refinanced within the first six years.

Balloon payment mortgage loans are not eligible.

Buyer must provide 3% percent of the down payment.

Buyer needs to apply for the grant through a participating lender. The lender will provide the first mortgage and apply on the buyer’s behalf for the down payment/closing cost grant from the Housing Commission.

An application fee is required from the buyer.

Grant applications take 14 business days to process.

Buyer must occupy the property as their primary residence.

Eligibility: To qualify, grant recipients must:

Not have asset that exceed $10,000 for the first household member and that do not exceed $500 per each additional household member (after the loan closes with the grant).
Be first-time home buyers (as defined by not owning a principal residence within the last three years).
Sign a Memorandum of Lien which describes the terms of the grant.
Before applying to the grant, provide the first mortgage lender with various kinds of documentation, including recent paycheck stubs and copies of the three prior year’s tax returns.

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