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					First-Time Homebuyer Shared Equity Program
Description:
In an effort to increase homeownership opportunities in southeastern San Diego, SEDC funds
homebuyer assistance to low and moderate income purchasers. The program is a shared equity
loan program which

Eligibility:
Homebuyers must purchase within SEDC’s area of influence.
Applicants must be first-time homebuyers or those who have not owned or held an interest in a
primary residence in the last three years.
Applicants cannot earn more than 120% of the San Diego area median income (for example,
$77,900 for a family of four).

Loan Amount:
Loans are available up to $40,000.

Interest Rates:
Interest-free.

Basic Terms:
No monthly loan payment is due as long as homeowner resides in the home. Loan is forgiven if
the homeowner resides in the home for 25 years.
For homeowners who sell or transfer the property before the loan is forgiven, the following
conditions apply:
    1.     Loan principal is due and payable at time of sale/transfer.
    2.     A portion of the equity realized upon sale/transfer must be returned to the program.
           The shared equity portion will decline over a 15-year period.

Down Payment Grant Program
Description:
Assistance with partial down payment costs is provided in the form of a cash grant to eligible
applicants who are in the process of purchasing newly constructed homes in targeted areas within
southeastern San Diego.

Eligibility:
Applicants must need cash assistance in order to close escrow.
Applicants must be first-time homebuyer’s or (no ownership in a principal residence within the
last three years).

Applicants cannot earn more than 120% of the San Diego area median income (for example,
$77,900 for a family of four).
Applicants must provide the first mortgage lender with various documentations, including recent
pay stubs and copies of three prior years’ tax returns before applying for the grant.
Grant Amount:
Up to $5,000, depending upon the funds available.

Basic Terms:
Program requires a minimum of 3% down payment by borrower.
Must be paid back if home is sold, transferred or refinanced within the first six years.

Grant is to be used with faxed conventional loans only.
Buyers must apply for the grant through a mortgage lender approved by the San Diego Housing
Commission. (The list of lenders is available upon request.)

Housing Rehabilitation Programs
Description:
Housing rehabilitation grants and low-interest loans are available to homeowners in targeted
redevelopment project areas that require assistance with interior and exterior enhancements to
their home such as: plumbing & electrical; roof repairs; door, window, and paint repairs.

Exterior Enhancement Grant – This grant provides up to $5,000 and is available to homeowners
of owner-0occupied one and two-unit properties with gross household incomes up to 100% of
the San Diego Median Area Income (for example, $64,900 for a family of four). The homes
must be at least ten years of age. This conditional grant is forgiven 20% per year over a five-
year period based upon continued owner occupancy and maintenance of exterior improvements.

Home Repair Grant – This grant program makes available up to $5,000 for owner-occupied
one and two-unit properties with gross household incomes up to 80% of the San Diego Median
Area Income (for example, $55,200 for a family of four). This grant is for the repair of interior
or exterior health and safety hazards and can be applied for separately or combined with the
Exterior Enhancement Grant. Twenty (20%) percent of grant is forgiven each year for five years
as long as the home remains owner-occupied.

A condition of both grants is a five-year deed restriction requiring that the owner maintain
residence at the property for not less than five years and limiting the sale of the property to
persons of low and moderate incomes.

Housing Rehabilitation Loan – Homeowners who have substantial home repair needs may
qualify for 3% simple interest fully deferred loans up to $35,000. Loans are available to owner-
occupied one and two-unit properties with gross household incomes upon to 80% of the San
Diego Median Area Income (for example, $55,200 for a family of four). Payments are deferred
until sale, subsequent loans, transfer of ownership of the home, or 15 years form the loan date, at
which time full principal and accrued interest is payable.

If a homeowner prefers to make monthly payments and can qualify based upon underwriting
guidelines, they may choose an alternative repayment plan through a 0% interest loan requiring
monthly principal-only payments for 15 years. This loan cannot be combined with the Exterior
Enhancement or Home Repair grants.
Attend a Free Homebuyers Workshop
SEDC has been conducting Homebuyer Works since 1996. The interactive workshop is
designed to educate potential homebuyers on the process of buying a home with topics such as:
how to qualify for a home loan, where the new homes are being built, and credit management.
In addition, you will learn about the various home-buying programs offered by SEDC for
individuals seeking a home in southeastern San Diego.

The Workshops are free to all and requires a commitment of one Thursday evening. If you are
interested in taking the first step forwards purchasing a home then you are ready to make a
reservation for our next workshop.

All workshops are held at SEDC’s corporate office: 4393 Imperial Avenue, Suite 200, San
Diego, CA 92113

Our next workshop will be held Thursday, October 5, 2006, 6:00 p.m. – 9:00 p.m. Free childcare
and refreshments will be provided.