There are several programs available to help first-time homebuyers towards purchasing a home in San Diego! To qualify for some of these programs here are some requirements - the maximum annual income before taxes is $56,150 for a family of four. With a combination of a shared equity loan, the tax credit program and down payment aid, qualified buyers would be able to purchase a $370,000 home. Without these programs, you would only qualify for $255,000. Click on each link for more details.

1. San Diego Housing Commission Home Buyer Assistance Programs

2. San Diego Community HousingWorks

Community HousingWorks is a San Diego non-profit that helps people and neighborhoods move up in the world by providing a full range of housing options combined with training and support.

12 Ways to Obtain a Down Payment:

	Set up an automatic saving plan.
	Get a gift from your parents, grandparents, other relatives or friends.
	Sell a car, boat, motorcycle, collectibles or other assets.
	Liquidate stocks, mutual funds, savings bonds or other investments.
	Allocate your income tax refund.
	Take a loan from your 401(k) retirement plan and repay yourself with interest.
	Withdraw funds from your 401(k) plan, subject to taxes and penalties.
	Collect on a loan that you made to someone else.
	Get a bonus from your employer.
	Explore homebuyer programs for public servants, if you qualify.
	Apply for a state or local government homebuyer down payment program.
	Use a private down-payment assistance program.

Down Payment or Closing Costs?
Should homebuyers who have limited funds allocate more money toward their down payment or set aside some share of the total for closing costs? The simple answer is that the down payment should be the first priority, up to at least 5 percent (or 3 percent for an FHA-insured loan) of the purchase price. It doesn't matter if they have the money for closing costs if we can't show (the lender) that they have the money for the down payment.

If you've saved enough for a down payment, but not closing costs, here are some options.

How to get closing costs:

	Ask the seller to pick up the tab.
	Pay a higher interest rate in exchange for lender-paid closing costs.
	Wait to buy a home until you've saved more money.

If you want the seller to pay the costs, you should discuss that concession upfront before you sign a purchase contract because payment of costs is a negotiable term that affects the seller's net proceeds from the transaction.

Borrowers can reduce or even eliminate their closing costs by paying a higher interest rate on their mortgage. This sophisticated strategy should be discussed with your loan officer, but the basic rule of thumb is that an additional 1/8-percent higher interest rate will net a credit against closing costs equal to 1/2 percent of the loan amount. For example, an additional 3/4-percent in interest might eliminate closing costs of 3 percent. The catch is that as your credit gets larger, it takes a bigger interest rate jump to achieve the same amount of savings.

Instead of your total costs being 3 percent at one end of the spectrum and zero at the other end with a 3/4-percent higher interest rate, you could compromise on whatever combination of closing costs and interest rate you want.

Marcie Geffner is a freelance real estate reporter in Los Angeles.