Down Payment Assistance Programs in San Diego, CA
Buying a home in San Diego is a major milestone—but with rising home prices, coming up with the down payment can be one of the biggest challenges for first-time buyers. The good news? There are local and state-level down payment assistance (DPA) programs designed to make homeownership more accessible.
In this guide, we’ll break down some of the most popular San Diego down payment assistance programs, including those from the San Diego Housing Commission (SDHC), City of El Cajon, City of Chula Vista, and the statewide California Housing Finance Agency (CalHFA). There are many more programs available through nonprofits, credit unions, and community organizations—so this is just a starting point.
What is Down Payment Assistance?
Down payment assistance programs provide loans or grants to help qualified homebuyers cover their down payment and sometimes closing costs. Most programs are aimed at first-time homebuyers (defined as someone who hasn’t owned a home in the last three years) and have income, credit, and purchase price limits.
DPA programs can come in several forms:
- Grants – No repayment required.
- Deferred-payment loans – No monthly payments; repaid when you sell, refinance, or pay off the home.
- Forgivable loans – Loan is forgiven if you meet certain conditions (e.g., live in the home for a set period).
Local Down Payment Assistance Programs in San Diego County
1. San Diego Housing Commission (SDHC) – First-Time Homebuyer Program
The San Diego Housing Commission offers 0% interest, deferred-payment loans to help with the down payment and closing costs for first-time buyers purchasing a home within the City of San Diego.
Program Highlights:
- Loan Amount: Up to 22% of the purchase price (maximum varies by funding availability)
- Interest Rate: 0%
- Repayment: Due upon sale, refinance, or payoff of the first mortgage
- Eligibility:
- Must be a first-time homebuyer
- Meet income limits (typically low to moderate-income households)
- Purchase price must be within program limits
2. City of El Cajon – First-Time Homebuyer Program
The City of El Cajon provides deferred-payment loans for down payment and closing costs to eligible buyers purchasing in El Cajon.
Program Highlights:
- Loan Amount: Up to $100,000
- Interest Rate: 3% simple interest (no monthly payments)
- Repayment: Due upon sale, refinance, or when the home is no longer owner-occupied
- Eligibility:
- Must be a first-time homebuyer
- Must complete a homebuyer education course
- Meet income and purchase price limits
3. City of Chula Vista – First-Time Homebuyer Assistance
The City of Chula Vista offers deferred-payment second trust deed loans for down payment and closing costs.
Program Highlights:
- Loan Amount: Up to $120,000 or 22% of the purchase price (whichever is less)
- Interest Rate: 3% simple interest, deferred until payoff
- Repayment: Due upon sale, refinance, or change of occupancy
- Eligibility:
- Must be a first-time homebuyer
- Meet income and purchase price limits
- Home must be in the City of Chula Vista
State-Level Down Payment Assistance: CalHFA
The California Housing Finance Agency (CalHFA) offers several assistance programs for first-time homebuyers throughout the state, including San Diego County.
CalHFA MyHome Assistance Program
- What it is: A deferred-payment junior loan for down payment or closing costs.
- Loan Amount: Up to 3.5% of the purchase price or appraised value (whichever is less)
- Interest Rate: 1% simple interest
- Repayment: Due upon sale, refinance, or payoff of the first mortgage
CalHFA Dream For All Shared Appreciation Loan
- What it is: Covers a portion of the down payment in exchange for a share of the home’s appreciation when sold or refinanced.
- Loan Amount: Up to 20% of the purchase price
- Why it’s unique: Allows buyers to purchase with little to no down payment while sharing future home value gains.
Remember—These Are Just a Few Programs
The options above are some of the best-known programs in San Diego County, but they’re not the only ones. Nonprofit organizations, credit unions, employers, and even certain builders offer specialized down payment assistance—some of which can be combined with city or state programs for maximum benefit.
Every buyer’s situation is different, and the right program for you depends on your income, target city, and home price range. Schedule a quick call with our San Diego homebuyer team to review all available programs and find out how much assistance you may qualify for.