For many middle-income families and individuals, the dream of homeownership in high-cost areas like San Diego feels out of reach. Rising home prices, limited inventory, and the daunting challenge of saving for a downpayment have made securing a home an uphill climb. But for one financial analyst in San Diego, that dream became a reality thanks to the Federal Home Loan Bank of San Francisco’s Middle-Income Downpayment Assistance Program. With a grant from the program, delivered by a participating member financial institution, he was able to purchase his first home and lay down roots in the community he calls home.

Kevin — a mid-career financial analyst in San Diego earning a salary that qualifies him as middle-income in the region — had resigned himself to the possibility of leaving San Diego and relocating to a place where he could afford his first home. "I definitely was thinking about moving somewhere else — Florida, Texas — somewhere I could actually make my dream a reality," he recalls. The two-bedroom condo he longed for in San Diego was just too expensive for him to afford. However, when he learned about the Middle-Income Downpayment Assistance Program, his dream of homeownership in San Diego became a possibility.

Through the Middle-Income Downpayment Assistance Program, offered by his local lender, Mission Federal Credit Union, Kevin was able to receive a grant that bridged the gap between what he could financially afford and what the market demanded for the kind of home he wanted. These grants help families and individuals who qualify as first-time homebuyers and earn just over 80% up to 140% of area median income purchase a home, based on the location of the property to be purchased and adjusted for household size. Eligible homebuyers who contribute a minimum of $10,000 toward their downpayment may qualify for a grant of up to $50,000 that can be used for the homebuyer's downpayment and closing costs. These funds can be combined with assistance from local, state, and federal homeownership programs and initiatives, providing even more opportunities for middle-income families to have access to an affordable home of their own. "Before finding this program, buying a home felt like climbing a mountain I could never quite reach the top of," Kevin says. But with the help of the grant, he was able to purchase the home he dreamt of owning.

Kevin’s story is not unique. Many potential homeowners find themselves in a similar predicament — earning a stable income but struggling to save enough for a downpayment in a high cost and very competitive market. Brian Goetz, a mortgage loan originator at Mission Federal Credit Union, sees this issue firsthand. "The biggest hurdle that first-time homebuyers face is the downpayment," he explains. "We see a lot of people with good credit and stable income, but they just don’t have enough saved up. This grant program has been instrumental in turning renters into homeowners."

The impact of the Bank’s downpayment assistance grants extend beyond individual homeowners. Dan Helt, vice president of real estate sales at Mission Federal Credit Union, underscores the broader economic and social benefits. "Homeownership is still considered the American dream. It’s a milestone that allows people to put down roots in their communities and build generational wealth.”

Helt also highlights the payment relief the program provides. "With rates where they are now, an additional $50,000 downpayment can reduce a homeowner’s monthly payment by over $300. That $300 can make the difference between being able to buy a home or not." By providing stability and affordability, the Middle-Income Downpayment Assistance Program is changing lives by helping people have access to more affordable mortgages.

The overwhelming demand for the program is a testament to the benefits it offers to potential homeowners. "The moment the program offering is announced, the interest is through the roof," Helt shares. "We see massive outreach from both members and non-members of our credit union, as well as real estate professionals who have been trying to help prospective buyers for years. The energy and excitement surrounding this program is incredible."

Kevin encourages other middle-income families and individuals facing the same challenge of saving for downpayment to connect with a participating member financial institution of the Federal Home Loan Bank of San Francisco who offer the program. "Reach out to your local loan officer to see if you qualify for similar programs. You never know what programs might be available to you.”

By partnering with its member financial institutions, the Federal Home Loan Bank of San Francisco is able to help aspiring middle-income homeowners in Arizona, California and Nevada secure a home of their own. The partnership is necessary to serve a wide range of applicants. "We are incredibly grateful for the Federal Home Loan Bank of San Francisco’s commitment to funding this program," Helt emphasizes. "It’s one thing to want to do good in our community, but having a partner like the Federal Home Loan Bank of San Francisco makes it possible. Together, we’re opening doors to homeownership and changing lives."

Through partnerships with member community lenders, FHLBank San Francisco’s Middle-Income Downpayment Assistance Program is expanding access to affordable, sustainable homeownership for first-time buyers. By helping individuals like Kevin become homeowners, the program is strengthening communities and fostering long-term financial stability for households across Arizona, California, and Nevada.

Learn more about the Federal Home Loan Bank of San Francisco’s Middle-Income Downpayment Assistance Program, and other Community Programs, on the Bank’s website.