San Diego County

San Diego First-Time Home Buyer Programs

San Diego

With over 3,055 hours of sunshine yearly, San Diego County is a cheery place to call home. Its northernmost city of Oceanside boasts the most beautiful sunsets in all of California, while southernmost Chula Vista with its miles of coastline, canyons, and rolling hills is named one of the top safest cities in the country.

With a median home price of $483,000 (as of May, 2014), San Diego County is one of the more expensive home buying markets in the nation. But don’t let that deter you from calling this beautiful and diverse region your home. There are several first time home buyer programs in San Diego County that can help you get into a home with little out of pocket costs.

DCCA (Down Payment and Closing Cost Assistance Program) – This program is for the unincorporated areas of San Diego County and the cities of Coronado, Del Mar, Imperial Beach, Lemon Grove, Poway, and Solana Beach. It is a second loan for up to $35,000 at 3% interest which can be used towards your down payment or closing costs. You must come up with 1% of your own funds and take a homebuyer education course, as well as meet income and a few other restrictions. There are two sources of funds which can be used together, as long as they don’t exceed 33% of the purchase price. Funds are limited for this program, but we can verify they are available for you before you make your offer.

SDHC (The San Diego Housing Commision) – The City of San Diego offers homebuyer assistance in the form of a deferred loan of up to 17% of the purchase price. The interest rate is 3% and there is no payment due unless you sell or no longer occupy the home. There are income and credit guidelines and you do have to come up with 3% down, either from your own funds, or a gift from a relative. The City of San Diego also offers grants of $10,000 – $15,000 which can be used towards closing costs. Sometimes an offer that does not ask the seller to pay closing costs will be accepted more readily than one that does. These loans and grants are a valuable asset to have when you want to make your offer as appealing as possible to the seller, but don’t have the cash to cover both your down payment and closing costs.

CHDAP (California Homebuyer’s Downpayment Assistance Program) – Homebuyers who have not owned a home in the last 3 years may qualify for a loan of up to 3% of their purchase price to use towards a down payment or closing costs. This assistance can be used with either a Conventional or FHA loan. Buyers need to take a home buyer education course and meet income and sales price guidelines for this program.

CHF Platinum (California Home Finance Authority) – The CHF offers a grant of 5% of the purchase price to all eligible California home buyers. This grant can be used with a variety of loan types and does have some income and sales price restrictions, depending on the type of loan you have.

CalPLUS Conventional and FHA – These programs are offered through the California Housing Finance Agency. They are fixed rate loans and can be combined with a 3.5% second loan (Zero Interest Program or ZIP) for down payment assistance. These too, have some income and sales price limits and buyers must complete a home buyer education program to qualify.

Fannie Mae HomePath – The HomePath program is available to purchase Fannie Mae foreclosed homes. It’s a Conventional loan with no mortage insurance, and no appraisal required. It only requires 3% down, allows the seller to pay for more closing costs than normal Conventional loans, and will even allow you to finance in some rehabilitation costs.

Each of these home buyer assistance programs are available in San Diego County and can help you get into a home with little costs. At People Funding, we can help you evaluate your situation and determine if one of these programs is right for you. Contact us today and you may be moving into your new home in lovely San Diego County in no time at all.


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