Can you afford a monthly mortgage bill, but need San Diego down payment assistance?
Good news! There are San Diego down payment assistance programs for low- and median-income home buyers in San Diego County. Here are some details about the Housing Commission’s San Diego down payment assistance programs, including how to qualify, and how to apply.
Deferred Loans
DCCA CalHome Down Payment Assistance – Outside San Diego City Limits
The DCCA CalHome program is one of two deferred loan programs. The DCCA CalHome program is for properties outside San Diego city limits. DCCA stands for Down payment & Closing Cost Assistance. The DCCA CalHome San Diego down payment assistance program provides deferred loans to home buyers. These loans don’t require repayment until the recipient sells or refinances the home.
Here are the property requirements, borrower requirements, loan terms, and how to apply. You can also visit the Housing and Community Development Services website.
DCCA CalHome Property Requirements
- The property must be located within the DCCA jurisdiction. This jurisdiction includes 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.
- The purchase price of a new or existing property may not exceed $676,000.
- The property must be either vacant, or occupied by either the seller or the CalHome applicant; and must not have been vacated by the previous renters within the last 30 days.
DCCA CalHome Borrower Requirements
- You must occupy the property as your primary place of residence.
- The total gross annual income of the entire household must not exceed 80% of the San Diego County Area Median Income (AMI). For 2024, the maximum gross annual income for a family of 2 is $88,200. The limit for a family 4 is $110,250.
- You must be a first-time home buyer, which means you have not owned a home during the last three years.
- 3% of the purchase price must come from you, to go toward the down payment from your own funds.
- You must receive the maximum first mortgage loan for which you qualify.
DCCA CalHome Loan Terms
- The maximum DCCA/CalHome loan amount is up to 22% of the purchase price or appraisal value, whichever is less, plus another 4%, maximum $10,000, toward closing costs.
- Interest is accrued annually at 3 percent simple interest per year. Simple interest means that you only pay interest on the principal of the loan. For example, if you borrow $70,000, you will accrue $2,100 of interest for each year the loan exists.
- You don’t make loan payments right away. You will need to pay back the entire balance of the loan plus interest when you refinance (except if you refinance with an FHA Streamline loan), sell, pay off the first mortgage, or no longer occupy the property as your primary residence.
- The mortgage on the home must be a 30-year, fixed interest rate loan. Conventional, FHA, and VA financing are acceptable.
DCCA CalHome San Diego Down Payment Assistance – How to Apply
The first step in applying for the DCCA program is to get pre-approved by a lender. You need to contact one of the mortgage lenders pre-approved by SDHC. Your lender will help you apply.
For More Information
Visit the CalHome program website for more details about the DCCA CalHome San Diego down payment assistance program.
Visit the San Diego Housing Commission website to learn about first-time homebuyer programs available within City of San Diego limits.
Before you meet with a lender, you can estimate your approval amount. Read my article about mortgage approval estimates to calculate how much home you can afford. You can also learn about the Costs to Buy a Home and the Costs to Own a Home.
More Down Payment Assistance
Low- to median-income borrowers may qualify for additional down payment assistance. Some programs can be layered on top of each other, to maximize your benefit.
Use the California Association of REALTORS® Down Payment Resource Tool to check all available programs. Here are links to my articles about some popular down payment programs:
- CalHFA Down Payment Assistance – deferred loans for first-time home buyers (haven’t owned a home in 3 years)
- Fannie Mae HomePath Ready Buyer Program – grants up to 3% for Fannie Mae owned homes
- Golden State Finance Authority – grants up to 5% for down payment and closing costs
As always, contact me with any questions.
