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The programs that exist, who qualifies, and the strings attached to each.
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San Diego buyers have four main paths to a smaller down payment. First, the San Diego Housing Commission's first-time homebuyer programs offer deferred-payment loans and closing-cost grants to income-qualified buyers purchasing inside the City of San Diego, with the County of San Diego running a parallel program for unincorporated areas and participating cities. Second, CalHFA, the state housing agency, pairs a first mortgage with a subordinate down payment loan such as MyHome, and layers on the Dream For All shared-appreciation program when funding rounds open. Third, occupation-based programs — Homes for Heroes, Landed-style shared-equity products and school-district partnerships — target teachers, nurses and first responders. Fourth, and most powerful locally, VA loans allow qualifying service members and veterans to buy with no down payment and no mortgage insurance, which matters enormously in a county this military-heavy. Expect income limits tied to area median income, a homebuyer education certificate, owner-occupancy requirements and, on the deferred loans, repayment when you sell or refinance.
| Program type | Who it fits | Key catch |
|---|---|---|
| SD Housing Commission | First-time buyers in city limits | Income limits; deferred loan repaid at sale |
| County of San Diego program | Buyers outside city limits | Funding rounds and waitlists |
| CalHFA MyHome | Statewide first-time buyers | Must use a CalHFA first mortgage |
| Dream For All | Buyers accepting shared appreciation | You repay a share of the gain |
| VA loan | Service members and veterans | Funding fee; occupancy required |
| FHA 3.5% down | Lower credit scores | Mortgage insurance for the life of the loan |
| Hero / educator programs | Teachers, nurses, first responders | Varies by lender and district |
How each one actually works in practice.
The city's program combines a deferred-payment second loan with a closing-cost grant for income-qualified buyers who will occupy the home. Funds are limited and released in cycles, so get pre-approved with a participating lender and have your certificate ready before you shop.
Serves buyers in the unincorporated county and participating cities. Structure is similar — a subordinate loan repaid on sale or refinance — with its own income limits and purchase price caps.
A deferred junior loan of a small percentage of the purchase price to cover down payment or closing costs, available only when paired with a CalHFA-approved first mortgage. Statewide, so it works anywhere in the county.
When funding rounds open, this state program covers a large share of the down payment in exchange for a portion of the home's future appreciation. Rounds are heavily oversubscribed and have used a lottery, so treat it as a bonus rather than a plan.
Zero down, no monthly mortgage insurance and competitive rates for eligible service members, veterans and some surviving spouses. In San Diego, sellers are used to VA offers, which removes much of the friction VA buyers face elsewhere.
FHA allows 3.5 percent down with more forgiving credit standards, and conventional 3 percent down programs exist for first-time buyers under income limits. Both can stack with a local assistance second.
The order of operations that keeps an offer alive.
Nearly every program keys to a percentage of San Diego's area median income and household size. Run your number before you tour a single house — it determines which programs you can even discuss.
Assistance programs only fund through approved lenders. A great lender who isn't on the list cannot deliver the program, and switching mid-escrow costs you the deal.
Most programs require an eight-hour HUD-approved course and certificate. It's easy to complete online and it expires, so do it once you're seriously looking.
Deferred second loans generally come due when you sell, refinance or stop occupying the home. Shared-appreciation products additionally claim a percentage of your gain. Neither is free money — just patient money.
Lenders want to see cash after closing, and San Diego property taxes, insurance and HOA dues raise the monthly payment more than buyers expect. Assistance solves the down payment, not the carrying cost.
Yes. The San Diego Housing Commission runs first-time buyer assistance inside city limits, the County runs a parallel program elsewhere, and state CalHFA programs are available countywide.
Conventional programs start around 3 percent for qualifying first-time buyers, FHA requires 3.5 percent, and VA loans allow zero down. Assistance programs can cover part or all of that plus closing costs.
Most programs define it as not having owned a primary residence in the past three years, which means many repeat buyers qualify again after a gap.
Usually yes. Most local assistance is a deferred second loan repaid when you sell, refinance or move out, and shared-appreciation programs also take a share of your gain. Some closing-cost grants are forgivable.
Veterans and service members should start with a VA loan, which needs no down payment. Teachers, nurses and first responders can look at hero-lending discounts and shared-equity products, though terms vary by lender.
Neighborhood-by-neighborhood breakdowns for people who actually live here.
What a one- and two-bedroom really costs across the county.
The full monthly math on moving here.
Every step from pre-approval to keys.
Loan types, rates and what lenders look for.
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Written and fact-checked by the Sandi Spots Editorial team — San Diego residents publishing under Sleep Coast LLC. Every place we recommend has been visited in person or verified against an official source, and no business can pay for inclusion or a higher ranking. Last updated .