San Diego County’s CalHome Initiative: Your Path to Affordable Homeownership
The San Diego Home Consortium is committed to making homeownership more accessible and affordable through its Homebuyer Downpayment & Closing Cost Assistance (DCCA), also known as the CalHome Program. This initiative is specifically designed to support first-time homebuyers by providing essential financial assistance to cover the substantial upfront costs often associated with mortgage transactions.
Extensive Financial Assistance for Homebuyers
The CalHome Program offers significant aid to applicants, providing up to 17 percent of the total property price for down payment assistance. Additionally, it offers up to 4 percent (capped at $10,000) in closing costs assistance. This support is provided in the form of a deferred loan, accruing 3 percent simple interest annually. Notably, this loan does not require monthly payments. Instead, repayment is deferred until the home is refinanced (excluding FHA Streamline Refinance), sold, paid off, or ceases to be the borrower’s primary residence. The repayment includes the original principal loan amount plus any accrued interest in a single payment.
Eligibility Criteria for Applicants
To be eligible for the CalHome Program, applicants must be first-time homebuyers, defined as those who haven’t owned a home or been on a title for one in the past three years. The program is tailored for those whose annual gross household income is at or below 80 percent of the area median income for San Diego County, as determined by HUD. Applicants are required to contribute a minimum of three percent of the purchase price from their own funds and must secure the maximum first mortgage loan for which they qualify. The program also stipulates an occupancy ratio, allowing no more than two individuals per living space, including bedrooms and living areas.
Mandatory Homebuyer Education
A unique aspect of the CalHome Program is the requirement for borrowers to complete a HUD/CalHome-approved homebuyer education class. This educational component ensures that applicants are well-informed about the responsibilities and intricacies of homeownership.
Property Eligibility and Requirements
Properties purchased under this program must be the borrower’s primary residence and located within the CalHome jurisdictional boundaries. This includes unincorporated areas of San Diego County and several cities. Eligible property types include single-family detached units, condominiums, townhouses, or manufactured homes on a permanent foundation.
The program sets maximum purchase prices for different types of properties: $383,800 for new or existing properties, and $517,750 for attached townhomes, condominiums, or single-family residences. These limits are subject to periodic adjustments. Additionally, the purchased home must pass a Housing Quality Standards (HQS) inspection, be free from health and safety defects and lead-based paint hazards, and have proof of initial building permit issuance. If the property is located in a flood plain, flood insurance is required.
The CalHome Program by the San Diego Home Consortium represents a significant effort to bridge the gap to homeownership for many first-time buyers, offering a comprehensive package of financial assistance and educational support.
