SAN DIEGO (KGTV) — The combination of high interest rates, limited inventory and an increase in home prices has made it difficult for people to afford homes in San Diego. Down payment assistance programs are helping prospective buyers overcome these challenges and achieve their dream of homeownership.
Alexandra Zenteno always dreamed of owning her own place in the heart of San Diego, but never thought being a homeowner was possible given the current market conditions.
"I've been saving up a lot of money, and I have a good credit score. Why not see if I qualify for a mortgage?" Zenteno said.
The median price for a house in San Diego is $990,000, with mortgage interest rates sitting at 6%.
After years of dealing with increasing rent and working to pay off her debt, Zenteno connected with Kithia DeAnda, a loan officer at Finest City Homes & Loans, who helped her find the right program.
After collecting pay stubs, W2s, IDs, bank statements and 401k documents, DeAnda discovered Zenteno qualified for a down payment assistance program through the City of San Diego.
While assistance is available at both state and local levels, many programs have specific eligibility requirements. A common criteria is falling within an income cap: not making more than 80% of San Diego's median income.
Zenteno qualified for a deferred payment and won't need to make a payment for 30 years.
"The program offered her, I believe, 24% for her down payment and then again a $10,000 grant for closing costs," DeAnda said.
The numbers broke down significantly in Zenteno's favor.
"For this particular borrower, when a program agency is lending you 24%, it literally loaned her $114,000 for her down payment," DeAnda said. "And so not only did it actually reduce the loan amount, but it also removed the private mortgage insurance, making her payment a lot more affordable. In addition, she also was able to get a $10,000 grant to help with closing costs, making her contribution almost like less than $5,000."
DeAnda says there are many opportunities like this available — buyers just have to think creatively and find what criteria best fit their situation. She suggests connecting with a loan officer for help.
An important first step: work on your credit score.
"If your credit is, let's just say below 600, work on that," DeAnda said. "The number one tip is to put all of your payments on automatic payment because the thing that hurts your credit the most is having late payments."
As for Zenteno, she says buying the house was just the start — now it's all about budgeting to stay on top of all her payments.
"Definitely kind of keep track of all your finances and see where your money's coming and going, that way you can account for all of those spending," Zenteno said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
