NEW San Diego Down Payment Assistance Program for Homebuyers 2025

If you’re a middle-income homebuyer in San Diego, there’s some exciting news for you! The San Diego Housing Commission (SDHC) has launched a new program to help people like you get into a home with down payment assistance. This program is for first-time homebuyers with an income under 150% of the Area Median Income (AMI), so it could be just what you need if you’re looking to buy your first home.

Let’s break it down in simple terms:

The New San Diego Down Payment Assistance Program for First-Time Homebuyers

Who Can Apply?

To qualify for this program, you need to meet these basic requirements:

1. First-time Homebuyer: You can’t have owned a home in the last three years.

2. Credit Score: Your credit score needs to be at least 640 for a conventional loan. If your score is above 700, you can have a higher debt-to-income ratio (50%), and if it’s under 700, your ratio should stay under 45%.

3. Income Limits: Your household income must be below 150% of the AMI, which depends on the number of people in your household.

4. Down Payment: You’ll need to contribute at least 3% of the purchase price from your own funds.

5. Maximum Assistance: The program offers a maximum of $80,000 in down payment help.

How Does It Work?

Here’s the fun part—this program gives you a lot of support in two key ways:

1. Down Payment Assistance:

• SDHC will front you up to $40,000 for your down payment in the form of a second mortgage.

• The best part? You won’t have to make any payments on it for the first 5 years! After that, you’ll pay it back at a low 4% interest rate over 10 years.

2. Closing Cost Help:

• SDHC will also give you up to $10,000 to cover your closing costs.

• This grant is forgiven after 3 years if you stay in the home (meaning you don’t have to pay it back at all).

What Does This Mean for You?

Here’s the bottom line:

• No payments for the first 5 years on the $40,000 down payment help. After 5 years, you’ll start paying it back at a low 4% interest rate over 10 years.

• Up to $10,000 for closing costs, and it’s forgiven after 3 years if you stay in the house.

• 3% minimum investment from your own savings.

• For first-time homebuyers with moderate income.

Basically, SDHC is giving you a huge leg up when it comes to buying your first home—whether it’s helping with your down payment or covering closing costs. If you’re a first-time homebuyer in San Diego, this could be exactly what you’ve been looking for!

Want more details or need help with the application? Head over to SDHC’s website to get started. If you have any questions, feel free to reach out and I can connect you with a qualified lender.