Essentially, the DCCA program is a “silent-second” program, which means that a buyer must still qualify for a first mortgage through a qualified lender but that the City will loan the buyer additional funds in the form of a second mortgage to make the purchase affordable to the buyer’s income level.  However, unlike the first mortgage, the buyer will not have to make monthly payments of principal and interest on the second mortgage loan from the City (i.e. “silent-second”). Buyers should be aware that the second mortgage obtained through the DCCA program will accrue simple interest over the life of the loan (typically 30 years) at a rate of 3% per year. So, for example, if a borrower obtains a DCCA loan in the principal amount of $70,000, $2,100 of interest ($70,000 x 3% = $2,100) will be added to the DCCA loan’s principal amount each year it is outstanding. The value of the home being purchased cannot exceed $451,250 and the buyers must occupy the home as their primary residence; renting the property or otherwise transferring ownership or refinancing will cause the entire balance of the DCCA loan to become immediately due and payable.

The DCCA program will assist with purchases of single family homes located within a specific area of the City, generally defined as the southwest portion of the City. The boundaries are south of Interstate 8, west of Spring Street and the City boundary. Condominiums and town homes can be purchased using DCCA assistance regardless of their location within the City. 

The DCCA program is subject to funding availability and is available only to those who qualify under the program guidelines and income limits, as determined by the Department of Housing and Urban Development (HUD) and the City of La Mesa. Potential applicants are urged to review the Program Guidelines to see if they might qualify before contacting the City’s Community Development Department for further information.

The maximum loan amount is $70,000. Interested parties should review the Program Guidelines to assess their eligibility.  Eligible parties are encouraged to contact the DCCA Program Administrator at 619-667-1192 with any questions about the DCCA program.  Please contact Diane Lias of the San Diego Housing Commission at 619.578.7492 to become a preferred lender for both La Mesa's program and San Diego's program.

The DCCA Program is open and has funding available.