Sandiegodownpayment.com is the leader in providing knowledge and resources regarding home financing options for San Diego County first time home buyers. This is one of many installments in our series describing the little known, free, down payment assistance and grant programs available to home buyers throughout San Diego County. So we welcome you to read on and learn about these fantastic and generous programs available to you right now!
One of the very best and little know down payment programs offered for first time home buyers in San Diego County, is the City of San Diego Housing Commission down payment assistance and grant programs. This program works for any home buyers who have not owned a property in the last 3 years and make 80% of the San Diego County median income adjusted for family size. Using this program, home buyers can get 25% down payment assistance, plus a $15,000 forgivable grant. And additionally on top of all that, we can arrange 3% more assistance that can be for closing costs or added to the down payment. The following is what your payment would look like on a $300,000 home in San Diego:
· $300,000 purchase price
- $9,000 down payment from the buyer
(3% required down from buyers own funds but can be a gift) - $75,000 down from the City of San Diego
- $15,000 grant from the City of San Diego that is forgiven in 5 years
- $9,000 an additional 3% from a state of California program
- 1st mortgage $192,000 at 6% 30 year fixed payment $1,151/mo
So after receiving all of the down payment assistance your mortgage payment would be $1,151 per month. This is less than what many are paying for rent.
The way we structure these programs for you is we get you approved for a FHA 30 year fixed first mortgage and then the City of San Diego provides the down payment assistance as a “silent 2nd” mortgage. There are NO payments that need to be made on the 25% City of San Diego down payment assistance. You do not have to pay the assistance back until you sell the property. If you never sell, you never have to pay the down payment assistance back! The $15,000 grant that can be added on top of the 25% down does not have to be paid back AT ALL if you live in the house for 5 years. It is completely forgiven.
So as you can see, using an easy to qualify for FHA home loan + the down payment assistance and grant program from the City of San Diego is an absolutely fantastic way to become a home owner in San Diego County. These programs allow you to buy a house in a neighborhood you enjoy and to become a homeowner at a monthly payment similar to rent. And as a home owner, you will reap all the benefits of home ownership such as building equity and wealth, paying less taxes with the large deductions available to home owners (but not to renters) and also the personal satisfaction of owning your personal residence in a world class area such as San Diego.
We encourage home buyers who use these programs to make add a little bit more to their mortgage payment every month to pay off the mortgage in a shorter time frame. Think in the situation outlined above, if you were to pay your $201,000 mortgage off in 15-20 years. Since you do not have a payment on the down payment assistance from the City of San Diego, you would NOT have a mortgage payment for the rest of your life! This is achievable by adding a little more to your mortgage payment every month.
If you are interested in learning more about all of the hidden grants and down payment assistance programs available to home buyers in San Diego County, please contact one of our specialists at www.sandiegodownpayment.com.
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