Hey there! Navigating the San Francisco housing market can be overwhelming, especially for first-time buyers. But don’t worry—there’s a program designed to make homeownership more attainable for folks like you. Let’s dive into the details of the Below Market Rate (BMR) Ownership Program.

What Is the BMR Ownership Program?

The BMR Ownership Program, managed by the San Francisco Mayor’s Office of Housing and Community Development (MOHCD), offers eligible first-time homebuyers the opportunity to purchase homes at prices below the market rate. These homes are specifically designated to be affordable for low to middle-income households, helping to ensure that San Francisco remains accessible to a diverse range of residents.

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a home in the past three years.
• Income Limits: Your household income must fall within specific limits set by MOHCD, which vary based on the number of people in your household.
• Occupancy: You must intend to occupy the BMR unit as your primary residence.
• Homebuyer Education: Completion of a homebuyer education course through an approved counseling agency is required. This ensures you’re well-prepared for the responsibilities of homeownership.

Benefits

• Affordable Purchase Prices: BMR homes are sold at prices below the market rate, making them more accessible to eligible buyers.
• Equity Building: As a homeowner, you can build equity over time, even though the resale price is restricted to keep the home affordable for future buyers.
• Community Stability: Owning a home can provide long-term stability and a sense of community, allowing you to establish roots in San Francisco.

Potential Drawbacks

• Resale Restrictions: BMR homes come with resale price restrictions to maintain affordability for future buyers. This means you won’t be able to sell the home at full market value.
• Limited Appreciation: Due to resale restrictions, the potential for property value appreciation is limited compared to market-rate homes.
• Occupancy Requirements: You must occupy the home as your primary residence and cannot rent it out, which limits flexibility if your circumstances change.

Application Process

1. Homebuyer Education: Complete a 10-hour homebuyer education course through an approved agency. Find more information here.
2. Mortgage Pre-Approval: Obtain a mortgage pre-approval from a MOHCD-approved lender.
3. Apply for Listings: View available BMR listings and submit applications for units you’re interested in. Listings can be found on the MOHCD website.

Program Details

Location: San Francisco, California

Program Type: Affordable homeownership opportunity

Sources

• San Francisco Mayor’s Office of Housing and Community Development (MOHCD)
• MOHCD Homeownership Programs