Down Payment Assistance Programs in San Diego County

What is down payment assistance?

Down payment assistance (DPA) is money from government agencies, state housing authorities, or nonprofit organizations that helps you cover your down payment and, in many cases, your closing costs. The goal is simple: remove the biggest barrier to homeownership, which is saving up enough cash to get through the front door.

DPA comes in three main forms:

• Grants: Free money that you never have to repay. These are relatively rare and usually come in smaller amounts, such as the $10,000 grants included with some SDHC programs.
• Deferred loans: Second mortgages with no monthly payments. You do not pay anything until you sell the home, refinance, or stop living in it as your primary residence. At that point, the balance comes due. Most DPA programs in San Diego use this structure.
• Forgivable loans: Similar to deferred loans, but the balance is reduced over time. If you live in the home long enough, typically five to ten years, the loan is forgiven entirely and you owe nothing.

Some programs also include a shared appreciation component, meaning you repay the original assistance plus a percentage of the increase in your home's value when you sell. CalHFA Dream For All uses this model.

DPA is not charity. These programs exist because stable homeownership strengthens communities, builds household wealth, and reduces reliance on government services over time. They are funded by federal HOME and CDBG grants, state housing bond proceeds, and local tax revenue.

All San Diego DPA programs at a glance

Here is every major down payment assistance program available to San Diego County homebuyers in one table. Scroll right on mobile to see all columns.

Program details

Below you will find the key details for each program. Eligibility rules, income limits, and funding availability change periodically, so always verify current terms before applying.

Can you stack multiple programs?

One of the most common questions we hear is: "Can I use more than one DPA program at the same time?" The short answer is sometimes, but the rules are specific.

Here is how it generally works:

• Within a single agency, yes. SDHC programs typically bundle a deferred loan with a grant as part of one package. That is built into the program design. Similarly, CalHFA often pairs a first mortgage product (like CalHFA FHA) with the MyHome assistance program as an integrated package.
• Across agencies, usually no. You generally cannot combine an SDHC program with a CalHFA program or stack two primary DPA sources from different agencies. The first mortgage lender and the DPA provider need to be compatible, and most programs have subordination requirements that conflict with each other.
• GSFA is more flexible. Because GSFA Platinum works as a grant applied to the loan terms rather than a recorded second lien, it may be compatible with some other programs. Ask your lender about specific combinations.

The best approach is to work with a loan officer who has specific experience with San Diego DPA programs. They can model different combinations and tell you which option puts the most money in your pocket.

How DPA affects your monthly payment

One of the most appealing features of most San Diego DPA programs is that they do not increase your monthly payment. Here is why.

Deferred loans have no monthly payments. The SDHC programs, County DCCA, and CalHFA MyHome all use deferred second mortgages. You receive the money at closing, and it sits quietly as a lien on your property. You do not make any payments on it. The balance comes due only when you sell, refinance, or no longer live in the home.

Grants never have to be repaid, so they have zero impact on your monthly payment. The $10,000 grants from SDHC and County DCCA programs are free money that reduces what you need to bring to the closing table.

GSFA Platinum works differently. The assistance is structured as a slightly higher interest rate on your first mortgage instead of a separate lien. Your monthly payment may be slightly higher than a no-DPA loan at the market rate, but you get 5.5% of the loan amount to help with your down payment and closing costs. For many buyers, this trade-off is worth it.

CalHFA Dream For All also has no monthly payment, but it includes a shared appreciation component. When you sell, you repay the original assistance amount plus 20% of the gain in your home's value. If your home appreciates significantly, this can be a substantial amount. Plan accordingly.

The bottom line: DPA generally helps you get into the home without increasing what you pay each month. The real cost comes later, when you sell or refinance.

Do you have to pay it back?

This is the question everyone asks, and the answer depends entirely on which program you use. Here is a clear breakdown:

Programs with grants (no repayment)

The $10,000 grants included with SDHC Low-Income, SDHC Middle-Income, and County DCCA programs are outright gifts. You never repay them under any circumstances. They reduce your out-of-pocket costs at closing, period.

Deferred loans (repay when you sell or move)

SDHC deferred loans, County DCCA deferred loans, and CalHFA MyHome are all silent seconds with no monthly payments. You repay the full balance when you:

• Sell the home
• Refinance the first mortgage
• Transfer ownership
• Stop using the home as your primary residence

Some of these loans are also forgivable. SDHC loans, for example, may be partially or fully forgiven after a set number of years if you continue to meet program requirements. Check the specific terms of your loan agreement.

Shared appreciation loans (repay plus a share of gains)

CalHFA Dream For All requires you to repay the original loan amount plus 20% of the appreciation in your home's value. For example, if you received $100,000 in assistance and your home increased in value by $200,000, you would repay $100,000 plus $40,000 (20% of $200,000), totaling $140,000. If your home does not appreciate, you only repay the original amount.

Rate-based assistance (nothing to repay)

GSFA Platinum provides assistance through a slightly higher interest rate rather than a separate loan. There is no second lien and nothing to repay beyond your regular monthly mortgage payment.

Income limits explained

Almost all DPA programs use Area Median Income (AMI) to determine eligibility. AMI is the midpoint income for all households in San Diego County, adjusted for household size. The U.S. Department of Housing and Urban Development (HUD) publishes updated AMI figures annually.

When a program says it serves households at "80% AMI," that means your household income must be at or below 80% of the median. Here is what that looks like in practice for a family of four:

• 80% AMI: roughly $82,000 — eligible for SDHC Low-Income, County DCCA
• 120% AMI: roughly $123,000 — eligible for SD Black Homebuyers Program
• 150% AMI: roughly $154,000 — eligible for SDHC Middle-Income

These figures adjust for household size. A single person buying alone will have a lower income limit than a family of four. The income counted is your total gross household income, meaning everyone who will be on the mortgage is included.

CalHFA and GSFA programs use their own income limit tables that differ from AMI-based calculations. CalHFA limits are published on their website and vary by county. In San Diego County, CalHFA income limits tend to be generous enough that households earning up to $150,000 to $200,000 may qualify, depending on the specific program and household size.

Income limits change annually, so always verify the current numbers before assuming you qualify or do not qualify. Our DPA Finder tool uses the latest published limits.

Frequently asked questions about down payment assistance

Here are answers to the most common questions about down payment assistance in San Diego.