San Diego’s Middle-Income Program:
Up to $50,000 in total Assistance!
For first-time homebuyers in San Diego, the upfront costs of purchasing a home—down payments and closing fees—can feel like significant barriers. The San Diego Housing Commission (SDHC) has introduced the Middle-Income Program, a valuable opportunity for households earning within a specific income range to receive financial assistance for buying a home in the City of San Diego. As a mortgage lender, I’m pleased to outline how this program can support your journey to homeownership.
What Is the Middle-Income Program?
This program offers eligible first-time buyers $40,000 in down payment assistance as a loan, plus up to $10,000 in closing cost assistance as a grant—up to $50,000 in total support. It’s designed to help you overcome the initial financial hurdles of purchasing a home, provided you meet the program’s strict eligibility requirements.
Program Assistance and Terms
Here’s what the assistance includes:
✅ $40,000 Down Payment Assistance Loan:
- Interest Rate: A competitive 4%
- Term: 15 years.
- Repayment Structure: The loan is deferred for the first 5 years, requiring no monthly payments. Starting in year 6, it converts to an amortized loan with fixed monthly payments over the remaining 10 years (120 months). The loan becomes due if the property is sold, leased, refinanced, transferred, or further encumbered within the 15-year term.
- Benefit: This deferral period offers financial flexibility as you establish yourself as a homeowner.
✅ Up to $10,000 Closing Cost Assistance Grant:
- The grant is forgiven after 3 years, provided the home remains owner-occupied. No repayment is required if this condition is met.
- Benefit: This reduces the immediate out-of-pocket costs of closing on your home.
Eligibility Requirements
The Middle-Income Program has precise criteria to qualify, and I’ll break them down clearly:
- Income Limits: Your household income must fall strictly between 80% and 150% of the Area Median Income (AMI)—not a penny above or below. The program counts all income sources from all adults in the household, not just those applying for the loan. Here are the income limits based on household size:
- Asset Limits: After paying any down payment or closing costs from your own funds, your reserves cannot exceed $50,000. Additionally, in the 2 months prior to opening escrow, you must not have had more than $80,000 in liquid assets.
- Sales Price Limit: The home’s purchase price cannot exceed $999,999.
- Debt-to-Income (DTI) Ratio: Your DTI must be between 30% and 50%. A minimum FICO score of 640 is required if your DTI is below 45%, while a 720 FICO score is needed to reach the 50% DTI maximum.
- Buyer Contribution: You must contribute at least 3% of the purchase price from your own funds toward the down payment, but you cannot put down more than $80,000.
- Application Timing: You must be under contract for a property to apply—pre-approvals without a specific home are not accepted.
Why This Program Matters
The Middle-Income Program is a targeted solution for first-time buyers who fall within its defined income and asset boundaries. By addressing the challenges of down payments and closing costs, it opens the door to San Diego’s housing market, allowing you to build equity and secure your financial future—all while adhering to strict eligibility standards that ensure fairness and focus.
Take the Next Step
If you believe you meet these criteria and are ready to pursue homeownership, I’m here to assist. As your mortgage lender, I can review your financial situation, confirm your eligibility, and guide you through the application process once you’re under contract. This program is available now—contact me today to discuss how we can make your San Diego home a reality.
Have questions or need clarity on your qualifications? Reach out—I’m dedicated to helping you navigate this opportunity with confidence. Your first home could be closer than you think.
Ready to Get Started?
Schedule a FREE one-on-one call with me or get started now by applying with our FREE online mobile app.
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John King
I'm John King, and I've dedicated over 20 years to the mortgage industry. Proudly ranking in the top 1% of mortgage originators since 2015, my passion lies in guiding homebuyers and homeowners achieve their homeownership goals.
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All information is for educational purposes only and is not a commitment to lend. Program guidelines, eligibility requirements, and availability—including down-payment assistance and CalHFA programs—can change at any time. Not all applicants will qualify. Please speak with me for personalized guidance.
