San Diego First-Time Buyer Programs and Incentives

Buying your first home in San Diego can feel overwhelming—high prices, steep down payments, and competitive markets make it tough. But fortunately, local and state programs offer meaningful assistance. This SEO-optimized guide breaks down San Diego first-time buyer programs, incentives, eligibility criteria, application process, and FAQs to help you take confident steps toward homeownership.

1. Local Assistance via San Diego Housing Commission (SDHC)

SDHC offers two major tiers of first-time homebuyer assistance:

• Low‑Income Program (< 80% AMI)

• Loan: Deferred-payment for up to 25% of purchase price (max $125K), at 3% interest
  
• Closing Grant: Up to 4% of purchase price (max $10K)
  
• Income Limit: ≤ 80% of Area Median Income (AMI)
  
• Purchase Cap: Up to $1.116M detached / $617K attached
  
• Terms: Deferred loan, repayment when selling or if no longer primary residence; borrower must contribute 1–20% down; must attend education & counseling
  

• Middle‑Income Program (80–150% AMI)

• Assistance: $40K deferred loan + $10K closing cost grant (forgiven after 3 years if owner-occupied)
  
• Interest: 4%, deferred years 1–5, repaid after
  
• Income Range: 80–150% AMI, max purchase $999,999
  

How to Apply: Through SDHC-approved lenders, complete income-credit checks, homebuyer education, and submit before contract dependent on funding cycles.

2. San Diego County Down Payment & Closing Cost Assistance (DCCA)

Covering unincorporated areas and cities like Carlsbad, La Mesa, Vista:

• Loan: Up to 22% of home price + $10K for closing
  
• Interest: 3%, deferred repayment upon sale or change in occupancy
  
• Income Cap: ≤ 80% AMI (moderate up to 120%)
  
• Max Purchase: ~ $698K
  
• Eligibility: First-time buyers (no ownership past 3 years)
  

Apply with SDHC-participating lender and attend homebuyer education.

3. State-Level: CalHFA Assistance

CalHFA offers mortgage options statewide (including San Diego):

• MyHome Program: Deferred junior loan, typically 3.5% of purchase
  
• ZIP (Zero Interest Program): Closing cost help up to 3%
  
• Requires 6-hour education and HUD-approved first mortgage (FHA/VA/conventional)
  

Pair state-level support with SDHC for maximum benefit.

4. Mortgage Credit Certificate (MCC)

• Tax credit up to 20% of annual mortgage interest paid
  
• Lowers federal income tax liability—helps monthly budgeting
  
• Available via SDHC with eligibility per income and purchase price limits
  

5. Special Grants: Teachers’ H.O.P.E. Program

• Launched Mar 1, 2025 for San Diego & Poway Unified teachers
  
• Up to $40K+ in down payment support
  
• First-come, first-served through Urban League; covers District 5 areas
  

6. Why Now? Market Context

• San Diego’s median home price reached $949K–$990K, requiring over $150K down ($152K median)
  
• High costs make assistance programs more essential than ever
  

FAQs

Read Next

• Everything You Need to Know About Qualifying for an FHA Loan
• Evaluating the Pros and Cons of FHA Refinancing