San Francisco doubles loan aid to first-time homebuyers
• Individual loans for down payment now available up to $200K
• Assistance is response to high cost of homes in current SF market
• Other programs available for first-time homebuyers
SAN FRANCISCO, California — Loan amounts for the city’s Down Payment Assistance Loan Program (DALP), which provides financial assistance to low- to moderate-income first time homebuyers, will be doubled, Mayor Edwin M. Lee announced on March 17.
Individual loans of up to $200,000 will now be available to qualified buyers. The program offers a deferred-payment loan that requires no repayment for 40 years or at the re-sale of the unit.
“The expansion of the DALP program proves the immediate and tangible impact of the Housing Trust Fund to assist the City’s first time home buyers and provide homeownership opportunities for San Francisco residents,” said Lee.
Article continues after this advertisementOriginally created through the passage of Proposition A in 1996, the program has traditionally provided loans of up to $100,000 for down payment assistance.
Article continues after this advertisementHowever, given the high cost of homes in today’s market, a higher loan amount is need to enable low to moderate income borrowers to keep up with market conditions, especially families.
Increased DALP amounts will enable San Francisco low to moderate income, first time homebuyers to better compete in today’s housing market, where the current median sales price is in excess of $800,000.
Through the passage of the Housing Trust Fund, the DALP will have available funds of $2 million this year, which will enable the larger down payment amount to be available for individual down payment loans.
The Housing Trust Fund will also provide an additional $1 million for the First Responders Program this year. Altogether, during the first five years following the passage of the Housing Trust Fund, San Francisco will be able to help at least 100 households buy their first home.
The Mayor’s Office of Housing and Community Development (MOHCD) offers qualified buyers a number of programs that can assist first time homebuyers. In addition to the DALP, the BMR – DALP Down payment Assistance Program (CalHome) aids first time homebuyers purchasing a Below Market Rate unit.
To date, MOHCD’s homeownership assistance programs have helped almost 3,000 families to buy a home. More than 600 DALP loans have been made, and since this program’s launch in 2013, MOHCD has funded four First Responder loans totaling nearly $500,000, with six other loans in process to close in 2014.
