San Diego County

Pilot Program Proposal Aims to Help Middle-Income Homebuyers

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A proposed Pilot program is making its way through the San Diego Housing Commission.

The program in its current form is designed to help middle-income San Diegans with the upfront costs of buying a house. According to the proposal, for those who qualify, a loan of up to 22% would be available towards the down payment of buying a house. The down payment loan accrues at 3% simple interest.

The loan is deferred for 30 years unless the owner sells, does a cash-out refinance, or doesn’t occupy the house as a primary residence.

In addition to the down payment, a cost assistance grant of up to $10,000 would be available. The grant would be forgiven at closing.

“A lot of San Diegans know it is really hard to purchase right now not, particularly because of the cost of the home but in reality, a lot of families are able to pay the mortgage, but the issue that they have is with the down payment and this is where the City of San Diego can potentially step-in,” District 8 San Diego City Councilmember Vivian Moreno said.

Eligibility for the proposed program would be based on income.

Household income must be between 80% and 150% of the Area Median Income which is between $104,100 and $160,350.

Councilmember Moreno said over 40,000 people would qualify for the program. If the program is funded as it is written, the program will have $6 million at its disposal and will cover 30 families in its initial phase.

If approved the application process is expected to open in 2023.

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