If you want to purchase a home, there are so many resources you can seek out in San Diego.
You don’t have to be worried that you don’t make enough money, or that there aren’t any programs for you to take advantage of, as this is simply not true.
It is important to understand that a first time home buyer is defined as someone that has never owned a home, or hasn’t owned one in 3 years, so if this applies to you, you may want to pay special attention.
San Diego Housing Commission First Time Home Buyer Program
The SDHC offers programs for the City of San Diego as well as the County of San Diego, although they have different requirements.
To apply you have to do a few things:
- Meet Income Limits
- Talk with a loan officer that is participating in the program.
- Go to an approved Homebuyer Education Course.
- Find a prospective home through a real estate agent.
Other programs have similar requirements, especially when it comes to the education course you have to take and the approved agents, so keep that in mind when you are researching and applying.
Some courses have to be taken in person, while others can be done online for a small fee.
There are a few programs from SDHC that are available to city residents.
Deferred Payment Loan
This loan is available at 3 percent interest and means no payments for 30 years.
If you move out of the home or sell it, you’ll likely have to make payments sooner.
It is a second trust deed loan that can amount to 17% or less of the purchase price.
Homeownership Grant Program
This grant can provide up to 4 percent of the price of a house, up to a certain amount.
If the grants are used the help with closing costs, they will be forgiven when closing escrow.
Mortgage Credit Certificate
With this program qualified households can receive a 20 percent tax credit of the amount of interest paid each year on their mortgage.
This lessens the tax burden for many, making them better able to afford to pay for their homes.
As a county resident, you may qualify for a deferred payment loan of up to 17 percent of the purchase price of a home, as well as up to 4 percent of closing costs.
The loan comes with a 3 percent interest rate.
We've written extensively on the San Diego Housing Commission First Time Home Buyer Program.
San Diego CALHFA First time Home Buyer Program
CalHFA also has a number of programs that can help you to pay for a new home.
Again, you must meet specific eligibility and income requirements.
Click here to see more about how to qualify for CALHFA programs.
MyHome Assistance Program
This program offers a junior deferred payment loan that may be up to 3.5 percent of the purchase price including closing costs.
CalPlus Conventional Loans
This is a first mortgage that has a 30 year term and a slightly higher interest rate than standard programs.
CalPlus FHA Loans
You can also get a 30 year loan for a first mortgage through this program, which is insured by the government.
Keep in mind that each CalHFA program can be paired with the CalHFA Zero Interest Program, or ZIP, in order to alleviate the cost of closing.
We've written extensively on the San Diego CALHFA First time Home Buyer Program.
San Diego GSFA Platinum Down Payment Assistance Program
With this unique program, people with low and medium incomes may qualify for a gift to help with a down payment or closing costs.
This gift doesn’t have to be paid back.
It isn’t just for first time home buyers, but it is a great idea to utilize if you are a first time buyer and are able to.
It does require you to have a certain FICO score and the amount can be up to 5 percent of the total of your loan.
We've written extensively on the San Diego GSFA Platinum Down Payment Assistance Program below:
And, we wanted to throw in a bonus for you.
San Diego CALHFA MCC Tax Credits
This credit for your taxes allows you to save money when you’re paying them, in order to put that money back into mortgage payments.
In some cases, you can take a credit that is equal to the amount you paid in mortgage, which can help out a lot.
Essentially, this allows you to have more to help you pay off your mortgage each year.
It can even be used in conjunction with different types of loans, grants, and programs.
We've written extensively on the San Diego CalHFA MCC Tax Credits.
Things to Know
These programs are available to a wide range of people, so it is worthwhile to look into them even if you don’t think that you can qualify for them.
The truth is that they were created to help people with lower incomes purchase homes, but the idea of a low income changes from neighborhood to neighborhood, so it’s important to see what you’re eligible for, instead of giving up or not trying at all.
Furthermore, some of these programs can be used with each other, which can save you even more money.
You don’t just have to purchase a traditional home either.
In some instances, you can opt for a condo or some other type of residence.
However, the most significant thing to keep in mind is that there are not only options out there for you, but there are a lot of choices.
The requirements for all these options are different, so it can be frustrating to try to figure out everything by yourself.
Go ahead and get all your financial information together and know the specifics about your situation, so it can help you as you are doing your research.
What do you think?
I would love to see your comments below - or, call/text me at (760) 201-1083.
Your DPA Insider,