City of San Diego offers down payment assistance to home buyers
The city of San Diego is offering down payment assistance to new home buyers.
This is the program we’ve been waiting patiently for–a little late, however, better late than never. The city started taking new applications on December 4th. the program is expected to help just 29 families throughout the city.
To qualify borrowers can not make more than 80% of the area median income. That means a family of 2 has a max income of $58,500. A family of three $65,500 and a family of 4 an income of $72,750.
Condo prices max out at $375,250 and single family homes at $570,000. Escrow periods are expected to last 45 days with the first time in underwriting to be about 10-21 days after the offer is accepted.
Now, in order to secure the city of San Diego offering down payment assistance to new home buyers , the borrower must obtain a new first trust deed loan. Once that is obtained by your lender that’s when you can qualify for the grant. You will be required to come in with 3% of your own money. On a $400,000 that’s $12,000. Typically, we can get closing costs paid, however, if the seller isn’t willing to pay for closing costs and the lender can’t, it will be your responsibility to cover the costs. Closing costs are typically 2% of the total purchase price.
The city of San Diego down payment assistance is a second deed of trust loan that, typically, won’t have to be paid back. There is a caveat, that is, if you no longer live in the home as your principal residence or you don’t live in the property for 30 years or more, then the loan must be paid back.