San Francisco renters who want to buy, did you know you can get your downpayment practically covered? 

 

The City of San Francisco offers Down Payment Assistance for first time home buyers.

 

Using the  Down Payment Assistance Loan Program, or DALP for short, first time home buyers in SF can get a loan of up to $375,000 on a single unit that will be your primary place residence.

 

Offered by the Mayor's Office of Housing and Community Development. the DALP is a silent second loan that requires no monthly payments. 

 

When the property is sold, the owner would pay MOHCD back the principal amount of the loan, plus an equitable share of appreciation.

 

Is there an application fee?

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There are no fees to apply for the DALP lottery, however there is a non-refundable fee to process the paperwork for the DALP application. 

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This will be collected when DALP funds are reserved to close on a property. See MOHCD program fees for more information.

 

How does the SF Down Payment Assistance Loan Program lottery work?
 

Note: no lottery preferences are used in the DALP lottery. Read more about the DALP lottery.
 

• MOHCD will process and approve applications in lottery rank order, by the following:

  • SFUSD Educators (Educators-DALP)

  • First Responders (FRDALP)

  • General

• There is a different funding source for applicants above 120% AMI.

  • Both 120% AMI and 175% AMI applicants will be ranked on the same list.

  • Each household can only reserve funds under one program (General, First Responders, or Educators) if selected.

  • First responders or SFUSD educators can still be considered for funding under the General DALP list if they are not selected under FRDALP or Educators-DALP.

    • However, the applicant must meet the AMI requirements and first-time homebuyer requirements of the funding source they use.

• If you're selected by lottery, you will need to fill out a more detailed form and provide more paperwork. See post-lottery process for DALP applicants.

 

Who is eligible to borrow?

 

An ADU, or accessory dwelling unit, is a secondary residential unit like a backyard cottage, guest house or add-on studios that shares a building lot of a larger primary home. These units cannot be bought or sold separately. 

 

• First-time homebuyers (in General DALP list): All adult household members must not have any ownership interest in a residential unit for the last three years.

• Completed homebuyer education from Homeownershipsf.org

• Maximum Income Limits: household income must not exceed 175% of the Area Median Income (AMI).

• Minimum Downpayment: Borrower must contribute a minimum of 3% (1.5% from borrower's own funds, and the remainder from gifts).

• Liquid Assets: Borrower must have no more than $300,000 prior to purchase, and no more than $60,000 after purchase.

• Post-Purchase Reserves: Borrower must have a minimum of 3 months’ reserves after purchase. In addition to Liquid Assets, vested funds from retirement accounts that permit withdrawals may be also used for reserves. This reserve should include 3 months’ of:

  • Principal

  • Interest

  • Mortgage Insurance (if any)

  • Property taxes

  • Hazard insurance

  • Homeowner’s association dues

• Occupancy: The property must be owner-occupied during the life of the loan.

• Eligible Household Member: An eligible household member must either be:

  • On title and loan of the property. All spouses or domestic partners must be included in the household and must appear on the application, title, and loan.

  • Listed as a dependent on tax returns.

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So, what's next?

Learn more about SF Down Payment Assistance Loan Program on the SF.GOV website.