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Golden State DPA

San Diego Down Payment Assistance: City vs County Programs Compared

Reviewed by Abdul Qayum, Loan Officer, NMLS #2444531

The San Diego Housing Commission (SDHC) runs three first-time buyer programs, and which one you can use depends on the address and your household income. Inside San Diego city limits, income-qualified buyers can get a deferred loan of up to 17% of the home's value (capped at $125,000) plus a closing-cost grant of up to $10,000, or, at moderate incomes, a $50,000 package. In the unincorporated county and twelve smaller cities, the County program reaches 22% of the purchase price. All three down payment loans are repaid; only the closing-cost grants are forgiven.

Figures below were checked against SDHC's program table, summary chart and guidelines on October 17, 2026. Cornerstone First Mortgage is an SDHC participating lender and Abdul Qayum is set up with SDHC to originate these loans.

SDHC first-time homebuyer programs compared
City Low-IncomeCity Middle-IncomeCounty Low-Income
WhereCity of San DiegoCity of San DiegoUnincorporated county plus Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach, Vista
Household incomeAt or below 80% of area median income80% to 150% of area median incomeAt or below 80% of area median income
Down payment helpDeferred loan up to 17% of the lesser of price or appraised value, max $125,000$40,000 deferred loanDeferred loan up to 22% of the purchase price
Closing-cost helpGrant of 4% of price, max $10,000, forgiven at closing$10,000 grant, forgiven after 3 years of living in the homeLoan of 4%, max $10,000
Repayment of the loanNo monthly payment; never forgiven; principal plus accrued interest due at sale, transfer, non-occupancy or end of termDeferred at first, then repaid in monthly installmentsNo monthly payment; principal plus accrued interest due at sale, transfer, non-occupancy or end of term
Maximum price$883,025 (effective December 2025)$1,250,000$743,000 (effective June 1, 2026)
Credit scoreSet by the first mortgage and SDHC underwriting660 per the June 2026 guidelines; 720 for debt ratios of 45% to 50% (SDHC's web page still shows 640)Set by the first mortgage and SDHC underwriting
First mortgageFixed-rate, from an SDHC participating lenderFixed-rate, from an SDHC participating lenderFixed-rate, from an SDHC participating lender
Funding (last seen)SDHC’s program page showed “Funds Available” in September 2026; current funding is confirmed with SDHC at reservation.Funds available per SDHC's pageAsk; confirmed at reservation

Sources: SDHC program table and participating lenders (Sept 2026) · SDHC program summary chart (effective June 1, 2026) · City of San Diego program guidelines (Dec 2025)

City or county? It is the address, not the mailing city

The City programs apply to homes inside the City of San Diego's limits. The County program covers the unincorporated areas of San Diego County plus Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach and Vista. Cities not on that list, such as Oceanside, Escondido and National City, are not covered by the County program; some run housing programs of their own. SDHC also administers separate programs for Chula Vista and El Cajon with their own limits and funding, which I check case by case. If you are not sure which side of a city line a property sits on, send me the address before you write an offer.

What “repaid” means here

None of the three down payment loans has a monthly payment at the start, which is why they are often mistaken for grants. They are not. The City Low-Income loan is never forgiven: SDHC's guidelines make principal plus accrued interest due at the earliest of a sale, a transfer of title, leasing the home, moving out, placing another lien on the property without consent, default, or the end of the loan term. The County loan works the same way. The Middle-Income loan is deferred at first and then converts to monthly installments. The closing-cost grants are the only money that is forgiven.

Income limits

SDHC measures income against San Diego's area median income (AMI), which it set at $130,900 for 2026. The 80% limit for a four-person household is $139,900; the full table by household size, including the 150% ceiling for the Middle-Income program, is on SDHC's site. SDHC 2026 income limits

Requirements that apply to all three

  • First-time buyer: no home owned, including in another country, in the three years before purchase.
  • A fixed-rate first mortgage from an SDHC participating lender, originated by a loan officer who has completed SDHC's lender training.
  • Homebuyer education plus pre-purchase counseling with an SDHC-approved provider, for the borrowers and any non-borrowing spouse.
  • The Middle-Income program also requires a buyer contribution of 1.5% of the purchase price, at least 1% from your own funds.
  • SDHC programs cannot be combined with each other.

How this compares with the statewide programs

For an income-qualified San Diego buyer, SDHC's percentages are far larger than anything statewide: CalHFA MyHome tops out at 3.5% of value and GSFA Platinum at 5% of the loan amount. The trade-offs are the income and price caps, the never-forgiven structure, and the extra review time. Buyers above the 150% income ceiling, or shopping above the price limits, go to the GSFA Platinum and CalHFA options in the comparison table.

Cornerstone First Mortgage, LLC is a CalHFA-approved lender and a Participating Lender in the GSFA Platinum program. This website is operated by Cornerstone First Mortgage, LLC and is not a government website; the California Housing Finance Agency (CalHFA), the Golden State Finance Authority (GSFA) and the San Diego Housing Commission (SDHC) do not operate it. Golden State Finance Authority (GSFA) is a duly constituted public entity and agency. Program terms, eligibility requirements, and availability are set by those agencies and may change without notice. Percentages are SDHC maximums and are reduced by SDHC's underwriting, funding and the first-mortgage amount; eligibility is determined by a full application. Cornerstone First Mortgage, LLC, NMLS #173855. Not a commitment to lend.

San Diego DPA questions

Which San Diego Housing Commission program am I in?

It comes down to two things: the address and your household income. Inside San Diego city limits, households at or below 80% of area median income use the City Low-Income program and households between 80% and 150% use the City Middle-Income program. In the unincorporated county and in Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach, Vista, income-qualified buyers at or below 80% of area median income use the County Low-Income program. SDHC also administers separate programs for Chula Vista and El Cajon with their own limits and funding.

Is San Diego down payment assistance a grant or a loan?

The down payment portion is always a loan. The City Low-Income and County Low-Income loans are deferred, with no monthly payment, and the City Low-Income loan is never forgiven: principal plus accrued interest is due when you sell, transfer title, stop living in the home, or at the end of the loan term. The City Middle-Income loan is deferred at first and then repaid in monthly installments. The closing-cost help is different: the City Low-Income grant (4% of price, up to $10,000) is forgiven at closing, the Middle-Income grant ($10,000) is forgiven after three years of living in the home, and the County closing-cost assistance is a loan.

How much can I get?

City Low-Income: up to 17% of the lesser of the purchase price or appraised value, capped at $125,000, plus the closing-cost grant of 4% up to $10,000. City Middle-Income: $40,000 plus the $10,000 closing-cost grant, $50,000 total. County Low-Income: up to 22% of the purchase price plus a closing-cost loan of 4% up to $10,000.

What are the price limits and income limits?

Maximum purchase price: $883,025 for the City Low-Income program (effective December 2025), $1,250,000 for City Middle-Income, and $743,000 for the County program (effective June 1, 2026). Income is measured against San Diego’s area median income, which SDHC set at $130,900 for 2026; the 80% limit for a four-person household is $139,900, and SDHC publishes the full table by household size.

Do I have to be a first-time buyer, and what credit score do I need?

Yes. SDHC counts you as first-time if you have not owned a home, including in another country, in the three years before the purchase. Credit minimums depend on the program and your debt ratio: the Middle-Income guidelines (June 2026) require a 660 middle score with a debt ratio up to 45% and 720 between 45% and 50%, while SDHC’s web page still shows 640; the low-income programs rely on the first mortgage and SDHC underwriting. All three require a fixed-rate first mortgage from an SDHC participating lender, homebuyer education plus pre-purchase counseling with an SDHC-approved provider, and a loan officer who has completed SDHC’s lender training.

Does SDHC assistance slow down closing?

It adds SDHC’s own review on top of the lender’s underwriting, plus the education and counseling certificates, so it can extend escrow. I coordinate the timeline with you and your agent so the purchase contract allows for it. Processing times vary and approval is not guaranteed.

Sources

Check which San Diego program you fitCall Abdul: (818) 231-0951