Offers deferred loans, home ownership grants, and mortgage credit certificates to help low- and moderate-income families buy their first homes. The program can assist with the purchase of a single family home, townhome or condominium in the City of San Diego. Assistance offered under this program includes: 3% Interest, Deferred-Payment Loan Program Eligible buyers earning no more than 80% of San Diego’s AMI may qualify for a deferred-payment, second trust deed loan of up to 17% of the purchase price, with the interest rate set at 3%. No payments are required for 30 years, unless the owner sells or no longer occupies the home as a primary residence, at which time the principal balance, including accrued interest, must be repaid. To qualify, the buyer must obtain a fixed-rate first trust deed loan, have adequate income, a good credit rating, and provide a minimum down payment of 3%. Applicants also must attend a homebuyer education class. Homeownership Grant Program Buyers earning no more than 80% of San Diego’s AMI are eligible for closing cost assistance of up to 4 percent of the purchase price, not to exceed $10,000. Homeownership Grant funds for closing cost assistance will be forgiven at escrow closing. Mortgage Credit Certificate Qualified homebuyers with income not exceeding 140% of San Diego’s AMI may claim a Federal income tax credit of 20% of the annual interest paid on their mortgage. The tax credit is a dollar-for-dollar reduction in the homebuyer’s Federal tax liability that increases the household income available to qualify for a mortgage loan and make monthly mortgage payments. Buyers may be subject to a recapture tax if they sell the home within the first nine years.
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