Springboard CDFI is a nonprofit company that helps first-time home buyers in San Diego realize their dream of owning a home. Among their many services is a down payment assistance program which offers substantial loans to qualifying home buyers. Currently they offer up to $30,000 down-payment loans anywhere in California, $76,000 for first time buyers in Chula Vista and $70,000 in National City.
These plans are run in conjunction with local city and county authorities as an incentive to encourage new residents to move in and contribute to the city’s economic growth. National City funds the program with money from the Home Investment Partnerships Program, administered by the U.S Department of Housing and Urban Development. Chula Vista relies a combination of HUD funds and grants from the California Department of Housing and Community Development to fund their down payment assistance program.
Qualifying requirements are steep, the program is open only to first-time home buyers who qualify for a mortgage. The homes must be bought within the city limits of the participating municipalities and the applicant’s annual household income must not exceed 80 percent of the area median income.
The down-payment loan does not need to be paid back for 30 years and has a 3 percent simple interest rate that does not compound. If the owner sells or rents the house however, the 30 year grace period disappears.
The program has proved to be successful so far with default rates less than 1 percent since the housing market recovered from the Great Recession.
If you are a prospective homebuyer put off by high down payments, there are similar programs out there for people just like you. Contact Carlos or myself and see how we can help put you on the path of home ownership.
Source: Springboard CDFI, UT San Diego