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SAN DIEGO COUNTY HOME CONSORTIUM

Homebuyer Downpayment & Closing Cost Assistance (DCCA) / CalHome Program

PROGRAM OVERVIEW

Effective March 01, 2017

Buyer:

  • You must occupy the property as your primary place of residence.
  • You must contribute a minimum of three percent of the purchase price from your own funds.
  • You must not have owned a home or been on title of a home within the last three years.
  • You must receive the maximum first mortgage loan for which you qualify. DCCA/CalHome loan cannot exceed 33 percent of total purchase price.

Property Guidelines:

  • The property must be located within the DCCA / CalHome jurisdictional boundaries.
  • The property may be a new or resale single-family detached unit, condominium, townhouse or a manufactured home on a permanent foundation.
  • The purchase price of a new or existing property may not exceed $383,800 for an attached townhome or a condominium and $517,750 for a single-family residence, subject to periodic adjustments.
  • The property must be vacant or occupied by the seller/owner, or the DCCA/CalHome applicant; and must not have been vacated by the previous renters within the last 30 days.
  • The property must be free from any health & safety defects and lead-based paint hazards. Prior to final loan approval, a Housing Quality Standards (HQS) inspection will be conducted to verify condition of property. Proof of initial building permit issuance must be provided.
  • Occupancy Ratio: No more than 2 people per living space (living space includes bedrooms, living room, family room, den/study).
  • You must obtain flood insurance if the property is located in a flood plain.

DCCA/CalHome Jurisdictional Areas Includes:

  • The unincorporated areas of the County of San Diego and the cities of: Carlsbad, Coronado, Del Mar, Encinitas, Imperial Beach, La Mesa, Lemon Grove, Poway, San Marcos, Santee, Solana Beach and Vista. Please see County of San Diego DCCA Jurisdiction.

Loan Terms:

  • The maximum DCCA/CalHome loan amount is up to 17% of the purchase price for down payment assistance and 4%, up to $10,000 in closing costs assistance.
  • No monthly payments are required.
  • The interest is accrued annually at 3 percent simple interest per year.
  • Repayment is deferred until the borrowers refinance (except an FHA Streamline), sell, pay off the first mortgage, or no longer occupy the property as their primary residence. The loan repayment will be one payment of the original principle loan amount plus any accrued interest.
  • Prohibited loans and terms: Negative–Amortization; Stated Income; Adjustable Rate Mortgage (ARM); Interest-Only Loans; and, if the Front-End Ratio is below 30 percent or over 38 percent, the Back-End Ratio is over 45 percent.

How to Apply:

  • The County of San Diego has partnered with the San Diego Housing Commission (SDHC) to administer the Downpayment and Closing Cost (DCCA) Program. To participate in the County of San Diego’s DCCA program, you must first apply for and obtain a first trust deed loan approval through one of the mortgage lenders pre-approved by SDHC.

Mortgage Credit Certificate / Tax Help for Home Buyers

  • We partner with the California Housing Finance Agency (CalHFA) to ensure all qualified Californians have access to a Mortgage Credit Certificate (MCC) program.
  • The MCC Tax Credit is a federal tax credit that may reduce the cost of your federal income tax.
  • This creates additional net spendable income for you, which you may use toward your monthly mortgage payment.
  • The MCC Tax Credit program may enable you, as a first-time homebuyer, to convert a portion of your annual mortgage interest into a direct dollar-for-dollar tax credit on your personal U.S. income tax returns.