San Diego is one of the least affordable metros in the country, so its down payment programs are correspondingly large — the city and county offer deferred loans that can reach well over $100,000, sized as a percentage of the price.
This guide focuses on what first-time buyers in San Diego specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
San Diego’s own first-time buyer programs
Help depends on whether you buy in the City of San Diego or elsewhere in the county:
- SDHC First-Time Homebuyer — Middle-Income — from the San Diego Housing Commission, a $40,000 deferred loan plus a $10,000 closing-cost grant for households at 80–150% of area median income (4% simple interest, no payments in years 1–5)
- SDHC First-Time Homebuyer — Low-Income — a deferred loan of up to 17% of the price (max $125,000) plus a grant up to $10,000 for households below 80% of area median income (funding is intermittent — verify availability)
- County of San Diego assistance — for the unincorporated county and participating cities, deferred loans of up to 22% of the price (low-income) or 17% (moderate-income), each at 3% simple interest
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in San Diego
On top of San Diego’s local help, every California buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to California first-time home buyer programs, and the wider local picture in our California first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in San Diego
The San Diego County median home price is around $895,000, making it one of the least affordable large markets in the U.S. That is precisely why the local programs are percentage-based and so large — a deferred loan worth 17% to 22% of the price can reach six figures, covering most of the down payment on a typical home while adding nothing to your monthly payment for the first several years.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for San Diego buyers
Most San Diego first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in San Diego
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every San Diego and California program requires one, and it is usually free.
- Find a lender who works with both San Diego and California programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
San Diego first-time buyer FAQ
What down payment help is available in San Diego?
In the City of San Diego, the Housing Commission offers a middle-income program ($40,000 deferred loan plus a $10,000 grant) and a low-income program (up to 17% of the price, max $125,000, plus a grant). In the county, deferred loans reach up to 22% of the price for low-income buyers and 17% for moderate-income buyers. All are deferred seconds with low simple interest.
Can I combine San Diego city programs with California state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a California state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our California programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in San Diego?
Yes — San Diego’s programs require first-time buyer status, generally no ownership in the prior three years. Income tiers determine which program fits: below 80%, 80–120%, or up to 150% of area median income depending on the program. HUD-approved homebuyer education is required. Because the low-income tier’s funding rotates, confirm current availability before you plan on it.
How much down payment help can I get in San Diego?
Because San Diego is so expensive, the programs are unusually large. The San Diego Housing Commission’s middle-income program offers a $40,000 deferred loan plus a $10,000 closing-cost grant, and its low-income program reaches up to 17% of the price (max $125,000) plus a grant. The County of San Diego goes up to 22% of the price for low-income buyers. These are deferred seconds with low simple interest and no payments early on. Confirm current funding, especially for the low-income tiers.