The San Diego Housing Commission engaged the Urban Institute’s Housing Finance Policy Center to analyze the San Diego homebuying market and explore ways to support homebuying among middle-income households and Black households through more targeted down payment assistance (DPA) via SDHC’s First-Time Homebuyer Program. This report analyzes the San Diego housing market and borrowers’ financial characteristics and estimates the number of potential middle-income and Black households the commission could serve. Informed by interviews with seven comparable organizations that provide DPA in other cities, the report also provides four recommendations to the commission to increase homeownership among these two groups. These include diversifying funding sources to serve households earning above 80 percent of the area median income, re-examining eligibility criteria and program design, facilitating the lending process, and implementing targeted marketing efforts to reach potential Black homebuyers.