San Diego’s Housing Market Shifts
For years, many renters in San Diego believed homeownership was out of reach. With high home prices, rising interest rates, and steep down payment requirements, buying a home often felt like an impossible goal. But that is changing. Lending Bee is helping to lead this shift by connecting clients with flexible mortgage solutions and powerful assistance programs tailored to California buyers. Today, a combination of local and state programs, improved lending practices, and better access to financing options is helping renters make the leap to owning a home.
San Diego remains one of the most expensive housing markets in the country. Median home prices frequently exceed $800,000, with many homes in popular neighborhoods listed well over $1 million. In 2025, mortgage rates have hovered around 7%, pushing monthly payments higher and making affordability a major concern.
Despite these challenges, more opportunities are emerging for first-time buyers to enter the market. Local and state agencies are stepping in with targeted programs that reduce the financial burden of purchasing a home.
Local Down Payment and Closing Cost Assistance
San Diego Housing Commission Programs
The San Diego Housing Commission (SDHC) offers several programs designed to help first-time homebuyers overcome the biggest barrier: the upfront cost. These programs include deferred payment loans and closing cost grants, structured to support both low- and moderate-income households.
The SDHC’s Low-Income Program assists buyers earning 80% or less of the Area Median Income (AMI). It offers a deferred second-trust deed loan covering up to 17% of the purchase price, along with a grant of up to $10,000 for closing costs. This can significantly reduce the amount of out-of-pocket cash a buyer needs to close on a home.
For middle-income households, earning between 80% and 150% of AMI, SDHC offers a separate program with fixed-dollar assistance. This includes down payment help and closing cost support, making ownership accessible to a broader range of buyers.
Countywide Assistance Beyond City Limits
If you’re looking to purchase outside the City of San Diego, the County of San Diego also offers a Down Payment and Closing Cost Assistance (DCCA) Program. This program supports buyers in cities like Vista, Carlsbad, El Cajon, La Mesa, and unincorporated areas. Similar to SDHC’s offerings, DCCA provides deferred loans and grants to reduce upfront costs. Some buyers may qualify for assistance covering up to 22% of the purchase price.
These programs are designed not only to support affordability but also to encourage long-term residency and stability. In many cases, loans are only repaid when the home is sold, refinanced, or no longer used as a primary residence.
State-Level Programs Supporting First-Time Buyers
CalHFA MyHome and Dream For All Shared Appreciation Loans
The California Housing Finance Agency (CalHFA) provides additional support through its MyHome Assistance Program. This initiative offers a deferred junior loan to cover down payment and closing costs. Unlike a traditional mortgage, this loan requires no monthly payments and is only due when the home is sold or refinanced.
Another innovative program is the Dream For All Shared Appreciation Loan. Though temporarily paused due to overwhelming demand, it’s expected to return with a revised structure. This program helps first-time buyers by contributing toward the down payment in exchange for a share of future home value appreciation.
Mortgage Credit Certificate (MCC) Tax Savings
Qualified buyers in San Diego may also benefit from a Mortgage Credit Certificate (MCC), which offers a direct federal tax credit based on a portion of mortgage interest paid each year. This can reduce overall tax liability and boost long-term affordability. For many first-time buyers, MCCs offer a meaningful way to reduce the real cost of owning a home.
Targeted Grants and Special Programs
Some programs cater to specific groups. For example, educators in certain districts may be eligible for grants through the H.O.P.E. Teacher Grant Program, which provides down payment assistance to qualified teachers. Additional grants and subsidies may be available for first responders, military families, or essential workers, depending on funding availability.
These targeted programs often stack with general assistance, allowing qualified buyers to combine multiple benefits.
Flexible Lending Options for Buyers
FHA, VA, and Conventional Loans
In addition to assistance programs, today’s buyers benefit from flexible loan options that make homeownership more accessible. FHA loans are a popular choice for buyers with lower credit scores or smaller down payments. VA loans offer excellent terms for veterans and active-duty service members, including no down payment and no mortgage insurance. Conventional loans are also becoming more accessible, with some lenders offering low down payment options with competitive rates.
Lending Bee works closely with borrowers to identify the best loan type for their financial situation. By understanding each client’s unique profile, Lending Bee ensures the mortgage solution supports both short-term affordability and long-term stability.
Combining Programs and Maximizing Benefits
The key to affordability often lies in combining programs. A buyer might use a CalHFA loan for down payment support, layer it with a local grant from the SDHC, and pair the package with an FHA or conventional mortgage. This approach requires careful coordination, and that’s where a knowledgeable mortgage broker makes a major difference.
Lending Bee specializes in helping clients navigate the layers of available assistance. We simplify the process, streamline paperwork, and ensure buyers access every benefit they qualify for.
Education, Credit Counseling, and Pre-Approval
Many assistance programs require homebuyer education or financial counseling. These sessions are designed to prepare buyers for the responsibilities of owning a home, including budgeting, mortgage management, and maintenance planning. While often overlooked, these steps help prevent defaults and improve long-term success.
At Lending Bee, we guide buyers through the full process—from initial consultation to education program enrollment to final loan approval. Our team ensures every client is fully informed and financially ready for homeownership.
Lending Bee Makes Homeownership in San Diego Possible
Navigating San Diego’s competitive real estate market requires local knowledge, industry experience, and a personalized approach. Lending Bee offers all three. We understand the challenges renters face and specialize in helping clients transition into homeownership—no matter their income or credit history.
We simplify the mortgage process, clarify program requirements, and advocate for our clients every step of the way. With Lending Bee, San Diego homeownership isn’t just possible—it’s within reach.