Lender Information:If you are a mortgage lender, click here
for information about participating in SDHC
homebuyer assistance programs.
Home Buyer
Assistance Programs
The
San Diego Housing Commission (SDHC) has four distinct first-time
homebuyer programs to help individuals and families achieve the American
dream of homeownership:
1) New: Neighborhood Stabilization Homeownership
Program (available in targeted areas)
The pre-approval application process is now open for first-time
homebuyers seeking to purchase foreclosed properties in the City of San
Diego in specific areas through the San Diego Housing Commission’s
(SDHC) Neighborhood Stabilization Homeownership Program (NSHP).
NSHP’s primary objective is to help a first-time homebuyer from a
low-moderate income (up to 120% Area Median Income) with good credit and
the ability to make mortgage payments buy a foreclosed property within
the City of San Diego’s targeted areas in City Council Districts 3, 4, 7
and 8 from San Ysidro to Miramar. Click here for more information.
2) San Diego City-Wide First-time Homebuyer Program
Programs include Shared Appreciation Loans, Closing Cost Assistance
Grants, and Mortgage Credit Certificates.
SDHC’s programs can only be used to purchase a home in the City of San
Diego (zip code must begin with 921). Applicants must be first-time
homebuyers and earn no more than 80% of AMI in most cases. First-time
homebuyers are defined as not having owned a home used as the primary
residence in the past three years. All programs are subject to income
restrictions and have maximum purchase price limits.
Shared Appreciation Loan
SDHC provides a Shared Appreciation loan, up to 17% of the purchase
price. No payments are required for 30 years, unless you sell, refinance
or the property is no longer owner occupied; at which time you are
required to pay back the principal plus a share of the net equity. You
must obtain a fixed-rate first trust deed loan to obtain the deferred
loan, and have adequate income, acceptable credit history, and personal
funds for a minimum of 3% down payment. Applicants must attend a
homebuyer education class.
Grants for Closing Costs
SDHC offers grants to help homebuyers with payment of closing costs,
up to $15,000 or 4% of the purchase price whichever is less for households at
or below 80% AMI, and $10,000 or 4% of the purchase price whichever
is less for households at or below 100% AMI.
The
grant must be paid back if the home is sold, refinanced, or no
longer owner occupied within the first six years, after which point
it is “forgiven” (does not need to be paid back).
Mortgage Credit Certificates (MCCs)
Special “foreclosure MCCs” available: SDHC
received a special allocation of MCCs under emergency federal
legislation to help homebuyers and the ailing housing market. This
special award of MCCs can only be used by eligible homebuyers
purchasing bank-owned properties. Bank-owned properties are
homes or condominiums the lender took back through a foreclosure.
The MCC program operates as an IRS tax credit. With
an MCC, qualified homebuyers are eligible to take a federal income
tax credit of either 15% or 20% of the annual interest paid on the
mortgage each year for as long as the buyer lives in the home. This
credit reduces the federal income taxes of the buyer, resulting in
an increase in the buyers net earnings and increases the buyer’s
capacity to qualify for a mortgage loan. Applications are processed
through participating MCC certified lenders. Homebuyers may be
subject to recapture tax if they sell their residence within nine
years.
3)
For-Sale
Affordable Homes
SDHC has helped create policies within the City of San Diego that
require developers and original buyers to make new and re-sale homes
available to eligible buyers below the market value. Depending on
your household AMI, you may also apply to SDHC for a deferred loan,
a closing cost grant and / or MCC, making the home even more
affordable.
4) City
of La Mesa Down Payment/Closing Cost Assistance Program -
Temporarily Suspended
The program is being restructured and will commence
upon approval from La Mesa's City Council.
