Down Payment and Closing Cost Assistance Program

This program offers down payment and closing cost assistance to low income households.  The program provides zero interest "silent second" loans that must be repaid when the residential unit is sold.  There will be no monthly payments.  The assistance may be used to purchase attached or detached residential units within the city limits of the City of Carlsbad.  The home must represent the buyer's primary place of residence.  The residential unit may not be used as income property.  The buyer is not permitted to rent the unit or any rooms within the unit to another party.  The loan through the program shall be up to 5 percent of the fair market value, but not exceed $20,000.  To qualify for a loan under the program, the buyer must meet the stated income requirements and be able to qualify for a conventional mortgage to finance the remainder of the home purchase.  In addition, final monthly housing costs for the buyer may not exceed 35 percent of the gross monthly household income.  Other restrictions apply.

This program is administered by Community Housing Works for the City of Carlsbad.  They can be reached at 619-282-6647.