San Diego County, CA – First Time Home Buyer Programs
Are you a first time home buyer looking to purchase a home in the San Diego County, California? On this page you can learn about some of the different types of mortgage programs that are available to first time home buyers in California. You may also view down payment assistance programs that are currently being offered in California.
San Diego County, CA – First Time Home Buyer Loans
Below are some mortgage programs that are available to first time home buyers.
Types of Mortgages:
- Conventional Loans – Conventional loans offer the best loan terms to borrowers with good or excellent credit, as well as those who can afford to place a larger down payment. If you are able to put 20% or more down, you will be able to avoid paying private mortgage insurance (PMI). However, conventional loans also offer low down payment options, such as programs that only require 3% down.
- FHA Loans – FHA loans are a good option for borrowers who may not be able to qualify for a conventional loan. The qualification requirements for FHA loans are much more lenient than conventional loans. This includes options for home buyers with credit scores as low as 500 (in order to qualify for a 3.5% down payment, you must have a credit score of at least 580).
- USDA Loans – USDA loans provide home buyers the opportunity to purchase a rural home without any down payment. These loans are intended for borrowers with low-to-moderate income. In addition to not requiring any money down, you can also finance the closing costs into the loan. This means you can essentially buy a home with no money out of pocket!
- VA Loans – Active duty military members and veterans can apply for a VA loan which allows you to buy your first home without any down payment. These loans are not available to the general public, but exclusively to military/veterans.
- Jumbo Loans – Any mortgage that does not meet the conforming loan limits is a jumbo loan. You can lookup the 2023 conforming loan limits for San Diego County, CA (or any other county) using this conforming loan limit lookup tool. If you want to buy a more expensive home, and have the income to qualify, jumbo lenders offer loan amounts up to $5,000,000.
- Non-Prime Loans – If you do not qualify for any of the above types of loans, you may consider a non-prime or non-qm loan. These programs are especially helpful to self-employed borrowers, and a variety of people with credit issues (such as low credit scores and/or a recent bankruptcy, foreclosure, or short sale). Regardless of your situation, you may want to learn more about non-prime loans if you do not qualify for any of the other types of mortgages featured above.
These are some of the options that are available to first time home buyers. If you would like to have a mortgage loan representative help you understand what options may be available to you, we can match you with a lender that offers first time home buyer loans in California. The lender that we match you with will provide you with a free consultation, and also the opportunity to get pre-approved for a home loan.
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San Diego County, CA – Down Payment Assistance Programs
First time home buyers in the San Diego County, California may be eligible to receive down payment assistance. This includes a program that is offered exclusively in San Diego County, as well as a program that is offered in the City of San Diego. Additionally, there is a down payment assistance program that is offered throughout the entire state of California, which is available to first time home buyers in San Diego County. You can learn more about these programs below.
San Diego County DPA Program
The San Diego Housing Commission offers up to 17% in down payment assistance. The money is provided as a deferred loan with a 3% interest rate. No payments are required on the loan for 30 years, and the loan does not need to be paid off until you either sell the home, or no longer occupy the property as your primary residence. To qualify for the assistance, you must meet the following requirements:
- The home must be located in San Diego County, including the cities of Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach, Vista, and all Unincorporated Areas of the County of San Diego.
- You must be a first time home buyer.
- Have a credit score of at least 640.
- Contribute at least 3% towards the down payment from your own funds.
- The maximum sales price allowed is $466,000 for an attached property, and $574,750 for a detached property.
- Single family homes, townhomes, and condominiums are eligible.
- The highest debt-to-income ratio (DTI ratio) allowed is 45%.
- Your household income must not exceed the income limits, which are outlined below.
Income Limits
- 1 person household – $59,950
- 2 persons household – $68,500
- 3 persons household – $77,050
- 4 persons household – $85,600
- 5 persons household – $92,450
- 6 persons household – $99,300
- 7 persons household – $106,150
- 8 persons household – $113,000
To learn more about this program, visit the San Diego County website.
City of San Diego Down Payment Assistance
The San Diego Housing Commission offers up to 17% of the purchase price in down payment assistance. The money is provided as a deferred loan with a 3% interest rate. No payments are required on the loan for 30 years, and the loan does not need to be paid off until you either sell the home, or no longer occupy the property as your primary residence. To qualify for the assistance, you must meet the following requirements:
- The home must be located within the city limits of San Diego.
- You must be a first time home buyer.
- Have a credit score of at least 640.
- Contribute at least 3% towards the down payment from your own funds.
- The maximum sales price allowed is $417,050 for an attached property, and $665,000 for a detached property.
- Single family homes, townhomes, and condominiums are eligible.
- The highest debt-to-income ratio (DTI ratio) allowed is 45%.
- Your household income must not exceed the income limits, which are outlined below.
Income Limits
- 1 person household – $54,500
- 2 persons household – $62,300
- 3 persons household – $70,100
- 4 persons household – $77,850
- 5 persons household – $84,100
- 6 persons household – $90,350
- 7 persons household – $96,550
- 8 persons household – $102,800
To learn more about this program, visit the San Diego Housing Commission website.
CalHFA MyHome Assistance Program
The California Housing Finance Agency offers up to 3.5% of the purchase price in down payment assistance. The funds are provided as a deferred payment loan, which does not have to be paid back until you sell the home.
Requirements
- Be a first time home buyer.
- Occupy the home as your primary residence.
- Complete a homebuyer education course.
- Meet the income limits for your county.
- Purchase a home within for less than $795,000 (the maximum sales price allowed statewide).
To learn more about this program, visit the California Housing Finance Agency website.
Get Matched with a Mortgage Lender
A loan representative can help you determine what mortgage programs you may qualify for, and also check your eligibility for down payment assistance. If you would like to receive a free consultation, we can help match you with a mortgage lender that offers first time home buyer loans in California.