Down Payment Assistance Programs in San Diego You Probably Don't Know About

By Mike Fake · July 2025 · 6 min read

The biggest barrier for most San Diego first-time buyers isn't the monthly payment — it's coming up with the down payment. In a market where median home prices exceed $800,000–$900,000 in many areas, even a 3–5% down payment means $24,000–$45,000 in cash. That's a significant hurdle, especially for younger buyers still building savings.

What many buyers don't realize is that there are multiple programs — at the state, county, and city level — designed specifically to help bridge this gap. Here's an overview of the most useful ones.

CalHFA — California Housing Finance Agency

CalHFA is the most widely used down payment assistance program in California, and it's one I use regularly with clients. The program offers low-interest second mortgages or deferred loans that cover part or all of your down payment. Some CalHFA programs are forgivable if you stay in the home for a set number of years.

CalHFA programs have income limits and purchase price limits that are updated annually. In San Diego County, the limits are generally high enough that many middle-income buyers qualify — including households earning $150,000–$200,000 or more, depending on the program and household size.

San Diego County Down Payment Assistance

San Diego County's Homebuyer Assistance Program offers deferred-payment second loans of up to 17% of the purchase price for qualifying buyers in unincorporated areas and certain cities. Like CalHFA, this is a loan — not a grant — but with no monthly payments and no interest until the home is sold or refinanced.

City-Specific Programs

The City of San Diego, Carlsbad, Chula Vista, and Escondido all have their own homebuyer assistance programs at various times. These vary in availability and funding levels — some are first-come, first-served and run out of funds quickly. I stay current on which programs have active funding so I can match clients to available resources.

Employer-Sponsored Assistance

Some employers offer homebuyer assistance as a benefit — particularly school districts, hospitals, and government agencies. If you work for a large employer in San Diego, it's worth asking your HR department whether any homebuyer programs are available.

Gift Funds

Many loan programs — including FHA, conventional, and VA — allow all or part of your down payment to come from a documented gift from a family member. If you have family who want to help, this is a legitimate and commonly used approach. I can walk you through exactly how to document a gift properly so it doesn't cause issues with your lender.

Don't Assume You Don't Qualify

The biggest mistake I see is buyers assuming they earn too much or their home costs too much to qualify for any assistance. Many of my clients are pleasantly surprised. A quick review of your income and target price range is all it takes to find out. I do this at no cost during our initial consultation.