San Diego Housing Commission First-Time Homebuyer Programs

Information for Homebuyers

The San Diego Housing Commission (SDHC) offers deferred-payment loans and homeownership grants to help low- and moderate-income families buy their first homes.

The SDHC First-Time Homebuyer Program* can assist with the purchase of a single-family home, townhome or condominium in the City of San Diego. Eligible buyers earning no more than 80 percent of San Diego’s Area Medan Income may qualify for a deferred-payment, second trust deed loan of up to 25 percent of the purchase price (based on the buyer’s need), with the interest rate set at 3 percent.

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 6,000 families and individuals buy their first homes.

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

In addition to City of San Diego, SDHC administers the following other programs for neighboring jurisdictions:

County of San Diego’s First-Time Homebuyer Down Payment and Closing Cost Assistance Program. This County Department of Housing and Community Development Program serves all unincorporated areas of the County of San Diego as well as the cities of: Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach, and Vista.
City of Chula Vista’s First-Time Homebuyer Program
City of El Cajon’s First-Time Homebuyer Program

Program Descriptions and Guidelines

Each first-time homebuyer program SDHC administers has different eligibility requirements and features. See the program descriptions and guidelines below.

City of San Diego
- Low-Income (<80% of AMI) Program
County of San Diego
- Low-Income (<80% AMI) Program
- Middle-Income (80%-120% AMI) Program
City of Chula Vista
City of El Cajon

Applying for the First-Time Homebuyer Programs

Contact a loan officer from our Participating Lender list. The loan officer will be the primary point of contact from pre-approval to loan closing. The loan officer collects all required documentation and submits the application on the borrower’s behalf to SDHC.
Review San Diego’s Area Median Income (AMI) limits to confirm your household annual gross income (before taxes) does not exceed the limit for your family size. This includes the income of all adult household members.
Review the program descriptions and guidelines for the appropriate jurisdiction (e.g., City of San Diego, County of San Diego etc.) found below under Forms and Documents.
Attend a Homebuyer Education Course with an SDHC-approved provider.
Work with a real estate agent to find a property.

City of San Diego Low-Income (<80% AMI) Program (ZIP Codes beginning with 921)
Available Assistance	Deferred-payment Loan for down payment: Up to 25% of the purchase price. Not to exceed $150,000. Grant for closing costs (forgiven): 4% of the purchase price up to $10,000
Interest Rate	3% Simple Interest
Income Limit	80% of San Diego’s Area Median Income (For forgivable loans for closing costs, the maximum income is 100% of Area Median Income.)
Maximum Purchase Price	Attached: $603,250 Detached: $1,030,750 Effective December 2022
Funding Availability (as of February 1, 2024)	Funds Available
Additional Information	Program Guidelines
Additional Terms	No payments are required for 30 years, unless the owner sells or no longer occupies the home as a primary residence, at which time the principal balance, including accrued interest, must be repaid. To qualify, the buyer must obtain a fixed-rate first trust deed loan; have adequate income, a good credit rating; and provide a minimum down payment of 1 percent, and maximum down payment of 20 percent. Applicants also must attend a homebuyer education class and pre-purchase counseling.

County of San Diego Low-Income (<80% AMI) Program (12 participating cities and unincorporated areas – See Program Guidelines for specific cities)
Available Assistance	Deferred-payment Loan for down payment: Up to 22% of the purchase price Loan for closing costs: 4% of the purchase price up to $10,000
Interest Rate	3% Simple Interest
Income Limit	80% of San Diego’s Area Median Income
Maximum Purchase Price	Attached: $676,000 Detached: $676,000 Effective July 2023
Funding Availability (as of February 1, 2024)	Funds Available
Additional Information	Program Guidelines (Low-Income, 80% AMI)
Additional Terms	No payments are required for 30 years, unless the owner sells or no longer occupies the home as a primary residence, at which time the principal balance, including accrued interest, must be repaid. To qualify, the buyer must obtain a fixed-rate first trust deed loan; have adequate income, a good credit rating; and provide a minimum down payment of 3 percent. Applicants also must attend a homebuyer education class and pre-purchase counseling.

County of San Diego Middle-Income (80% – 120% AMI) Program (6 participating cities and unincorporated areas – See Program Guidelines for specific cities)
Available Assistance	Deferred-payment Loan for down payment: Up to 17% of the purchase price
Interest Rate	3% Simple Interest
Income Limit	120% of San Diego’s Area Median Income
Maximum Purchase Price	Current Median Sales Price as listed on the California Association of Realtors Website To access the median sales price on the C.A.R. website, select the links to the SFH Sales & Price or CDO Sales & Price. Please note C.A.R. updates the median sales price each month.
Funding Availability (as of October 31, 2023)	No Funding Available
Additional Information	Program Guidelines (Middle-Income, 80% – 120% AMI)
Additional Terms	No payments are required for 30 years, unless the owner sells or no longer occupies the home as a primary residence, at which time the principal balance, including accrued interest, must be repaid. To qualify, the buyer must obtain a fixed-rate first trust deed loan; have adequate income, a good credit rating; and provide a minimum down payment of 3 percent. Applicants also must attend a homebuyer education class and pre-purchase counseling.

City of Chula Vista
Available Assistance	Deferred-payment Loan: Up to 22% of the purchase price—not to exceed $120,000—for down payment and closing costs
Interest Rate	3% Simple Interest
Income Limit	80% of San Diego’s Area Median Income
Maximum Purchase Price	Attached: $623,200 Detached: $855,000 Effective September 2023
Funding Availability (as of February 1, 2024)	Funds Available
Additional Information	Program Guidelines
Additional Terms	No payments are required for 30 years, unless the owner sells or no longer occupies the home as a primary residence, at which time the principal balance, including accrued interest, must be repaid. To qualify, the buyer must obtain a fixed-rate first trust deed loan; have adequate income, a good credit rating; and provide a minimum down payment of 3 percent. Applicants also must attend a homebuyer education class and pre-purchase counseling.

City of El Cajon
Available Assistance	Deferred-payment Loan: Up to 25% of the purchase price—not to exceed $150,000 for single-family homes and townhomes OR $100,000 for condominiums—for down payment and closing costs
Interest Rate	Shared Equity (see Program Guidelines)
Income Limit	80% of San Diego’s Area Median Income
Maximum Purchase Price	Attached: $444,600 Detached: $760,000 Effective July 2023
Funding Availability (as of February 1, 2024)	Funds Available
Additional Information	Program Guidelines
Additional Terms	No payments are required for 30 years, unless the owner sells or no longer occupies the home as a primary residence, at which time the principal balance, including accrued interest, must be repaid. To qualify, the buyer must obtain a fixed-rate first trust deed loan; have adequate income, a good credit rating; and provide a minimum down payment of 3 percent. Applicants also must attend a homebuyer education class and pre-purchase counseling.