SDHC First-Time Homebuyer Middle-Income Program

What is SDHC First-Time Homebuyer Middle-Income Program?

SDHC First-Time Homebuyer Middle-Income Program is a deferred second loan for homebuyers in San Diego, California.

• $40,000 deferred down-payment assistance loan plus $10,000 closing cost grant (total up to $50,000) for buyers earning 80–150% AMI in City of San Diego. Income up to ~$152,000 for family of 4 in 2025.
• Up to $50,000 in assistance.
• no monthly payments on DPA.
• Funding comes from City of San Diego.

How much assistance does it provide?

SDHC First-Time Homebuyer Middle-Income Program offers up to $40,000 in assistance.

• The program asks buyers to contribute 1% of purchase price (borrower minimum).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

SDHC First-Time Homebuyer Middle-Income Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, transfer, or non-occupancy.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

SDHC First-Time Homebuyer Middle-Income Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

SDHC First-Time Homebuyer Middle-Income Program limits household income to 150% of the area median income, which varies by county and household size.

• 81-120% AMI; 4-person limit ~$125,280 (2026 San Diego Co. AMI).
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

SDHC First-Time Homebuyer Middle-Income Program caps the purchase price at $622,250.

• Eligible property types include Single-family (1-4 unit), FHA-approved condominium, townhome/PUD.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

SDHC First-Time Homebuyer Middle-Income Program serves buyers purchasing in San Diego, California.

How do you apply?

Applications for SDHC First-Time Homebuyer Middle-Income Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Contact provider directly; subject to funding availability, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.