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A program through the San Diego Housing Commission is helping first-time home buyers. According to 10News, the program will loan qualifying first-time buyers up to 22 percent of a home's purchase price as a down payment.
The program is open to households making 80 percent of Area Median Income or less. Additionally, the down-payment loan, a second mortgage at 3 percent simple interest, is not paid back monthly. Rather, it's due in full in 30 years, upon sale, or if the homeowner no longer occupies the home as a primary residence.
The commission's vice president of single-family housing finance Sujata Raman told 10News that with market prices increasing so quickly, participants usually sell their homes and move on within 7 to 9 years.
"Borrowers can make payments, but usually what tends to happen is borrowers refinance their mortgage at some point and roll the second mortgage into their first mortgage and pay us back, or the loan comes due upon sale of their property," said Raman.
The commission currently has $4.9 million available for eligible San Diegans to apply. For more information on housing opportunities with the San Diego Housing Commission, click here.