First-Time Buyer in San Diego County? Down Payment Assistance Programs You Should Know in 2026

by Eddie Lagunas

With North San Diego County's median home price at $1,020,000 (NSDCAR Marketwatch, Sept. 2026) and the 30-year mortgage rate at 7.32% (Freddie Mac, Oct. 22, 2026), saving a down payment is the biggest hurdle for first-time buyers. The good news is that real help exists. The catch is that every program has rules, so here's what's available right now and what to watch for.

Who Counts as a "First-Time Buyer"?

For CalHFA, a first-time homebuyer is someone who hasn't had an ownership interest in a principal residence, or lived in a home owned by a spouse, during the previous three years (CalHFA MyHome Handbook). So even if you owned a home years ago, you may qualify again.

Program 1: CalHFA MyHome Assistance

MyHome is a deferred-payment "junior loan" that helps with your down payment and closing costs. Per CalHFA (MyHome program page):

Amount: up to 3.5% of the purchase price or appraised value (whichever is less) with an FHA first mortgage, or up to 3% with a conventional first mortgage.
Requirements: first-time buyer, owner-occupied, a CalHFA first mortgage, homebuyer education, and household income under CalHFA's limit.
Education: CalHFA accepts an eight-hour online course from eHome ($100) or live counseling through a HUD-approved agency.
Repayment: payments are deferred. You repay when you sell, refinance or pay off the loan.

CalHFA's 2026 income limit for San Diego County is $259,000, effective June 30, 2026 (CalHFA income limits). That's a high ceiling compared with many programs, which makes it worth a look for many North County households.

Example (my own math): On a $600,000 purchase with an FHA loan, MyHome could cover up to $21,000, which is the 3.5% FHA minimum down payment.

CalHFA also offers CalPLUS loans paired with the Zero Interest Program (ZIP), a deferred second loan for closing costs. The first mortgage rate on CalPLUS is slightly higher than the standard CalHFA rate (CalHFA loan programs). That tradeoff is worth running the numbers on.

Program 2: California Dream For All (Shared Appreciation)

Dream For All offers up to 20% of the purchase price, capped at $150,000, for a down payment or closing costs. It's for first-generation homebuyers: at least one borrower must be a first-generation buyer and a California resident, and all borrowers must be first-time buyers (CalHFA Dream For All).

Here's how it works. When you sell, transfer or pay off the first mortgage, you repay the original amount plus a share of the home's appreciation. CalHFA's example: a moderate-income buyer gets 20% of the price and repays that amount plus 20% of any appreciation. A buyer at or below 80% of area median income repays 15% of appreciation.

Example (my own math): A $600,000 purchase with a $120,000 Dream For All loan, later sold for $750,000, means $150,000 of appreciation. At a 20% share, you'd owe $120,000 plus $30,000, or $150,000.

Current status: The voucher application window closed March 16, 2026. CalHFA released the latest round of vouchers on May 20, 2026, and vouchers go by random drawing, not first come, first served. If you weren't selected, CalHFA points buyers to MyHome and CalPLUS with ZIP. I'd sign up for CalHFA's eNews to catch the next round.

Program 3: San Diego County Down Payment and Closing Cost Assistance

The County of San Diego, working with the San Diego Housing Commission, offers a deferred loan for low-income first-time buyers (County of San Diego):

Amount: up to 22% of the purchase price for a down payment, plus a closing cost loan of 4% up to $10,000.
Income: no more than 80% of San Diego County's area median income.
Your contribution: at least 3% of the price, and you must not have owned a home in the last three years.
Where: unincorporated areas (which include Fallbrook) and participating cities, including Carlsbad, San Marcos and Vista. Oceanside and Escondido aren't on the County's list, so check with those cities directly.
Education: a homebuyer class is required.

Here's the big catch for North County. The maximum purchase price for the low-income program is $743,000, effective June 1, 2026, with 3% simple interest and no payments for 30 years unless you sell or move out (SDHC First-Time Homebuyer Programs). With a $1.02M North County median, that cap points toward condos, townhomes and lower-priced homes. SDHC also lists a moderate-income program (80% to 120% of area median income) in six participating cities, with up to 17% of the price.

Tips Before You Apply

Talk to a lender first. CalHFA works through approved loan officers, and SDHC requires a participating lender.
Compare the total cost. Deferred loans have no monthly payment, but you repay them later, and sometimes with interest or a share of appreciation.
Take the class early. Education certificates are required, and scheduling a class can take time.
Check the numbers each time. Income limits, price caps and funding change, so confirm on the day you apply.

Frequently Asked Questions

Can I combine down payment assistance programs? Sometimes. For example, CalHFA's ZIP is designed to sit behind MyHome. Combining County and CalHFA programs depends on each program's rules, so ask your lender.

Do I have to pay the assistance back? Yes. These are loans, repaid when you sell, refinance or pay off the first mortgage. Dream For All also takes a share of appreciation.

Is there a minimum credit score? Each lender and loan type has its own. I'll review your credit and tell you where you stand.

Can sellers help too? Yes. Sellers can often contribute toward your closing costs or a rate buydown. Limits depend on your loan type.

Let's Map Out Your Path to Homeownership

I'm both a real estate broker and a loan officer, so I can check which programs fit your income, your target price and your city. Call or text me at 760-521-4880 for a free, no-pressure plan.

Program terms, income limits and funding change often and are subject to approval. This article is general information, not a loan commitment.

Eddie Lagunas, Broker Associate, eXp Realty | DRE #01273510 | 760-521-4880
Edgar "Eddie" Lagunas, Loan Officer, West Coast Financial | NMLS #257063