Program Guidelines

1. Low income buyers must have a household making equal to or less than 80 percent of the Area Median Income* at the time of purchase.

2. Home must be owner's principle residence.

3. If you choose to sell within 15 years from date of purchase, city will determine new maximum sale price using low-income criteria & area median income.

4. Monthly payments (including all fees: mortgage, HOA, property tax, insurance, estimated utilities, etc.) cannot exceed 35% of the household's total monthly income at the time of purchase.

5. City of Carlsbad holds an interest free 2nd loan (or 1st loan for cash buyers), for the difference between the affordable purchase price and the appraised market value. Full lump sum payment becomes due at year 30 (from purchase date).

Example: if affordable price is 200k and property appraised at 350k, buyer would be issued an additional city interest free loan of 150k. The 150k amount would be due in full by a single lump sum payment 30 years from the date of purchase.

* Maximum Household "Gross" Income Eligibility Requirements (HUD Income Limits)

Effective 04/01/2020

Family Size of 1 Person 64,700
Family Size of 2 People 73,950
Family Size of 3 People 83,200
Family Size of 4 People 92,400
Family Size of 5 People 99,800
Family Size of 6 People 107,200
Family Size of 7 People 114,600
Family Size of 8 People 122,000