Buying your first home in San Francisco can feel overwhelming, but don’t worry—there are programs designed to make it easier. One fantastic option is the City Second Loan Program (CSLP), which might be just what you need to get started!

What is the City Second Loan Program (CSLP)?

The CSLP is a down payment assistance program funded by the City and County of San Francisco. It helps first-time homebuyers purchase specific properties within the city by providing a secondary loan of up to $500,000, depending on available funds.

Who Can Apply?

• First-Time Homebuyer: You haven’t owned a residential property in the past three years.
• Income Limits: Your household income cannot exceed 149% of the Area Median Income (AMI). For example, in 2024, the maximum income for a one-person household is $156,300.
• Homebuyer Education: Completion of a homebuyer education program through an approved agency is required.
• Owner Occupancy: You must live in the property as your primary residence throughout the loan term.

Benefits of the CSLP

• Substantial Downpayment Assistance: With loans up to $500,000, the program significantly reduces the financial barrier to homeownership.
• No Interest or Monthly Payments: The loan doesn’t accrue interest, and there are no monthly payments. Repayment is deferred until you sell or transfer the property.
• Market-Rate Resale: You can resell the property at market value. However, the city retains a right of first refusal, meaning they can choose to purchase the property or assign a buyer to match any bona fide offer.

Potential Drawbacks

• Shared Appreciation: Upon selling the property, you’ll repay the principal loan amount plus a share of any appreciation in the property’s value.
• Property Restrictions: The program is limited to specific developments within San Francisco, so it’s important to confirm eligibility before applying.

Application Process

The program operates on a first-come, first-served basis. Applicants need to:

1. Complete a pre-approval application, including financial documents and proof of homebuyer education completion.
2. Obtain pre-approval to bid on eligible properties.
3. Follow the city’s process to finalize the loan and home purchase.

Program Details

• Type: Down Payment Assistance Loan
• Location: San Francisco, California
• Funding Source: City and County of San Francisco

Learn More and Apply

For the most current information, eligibility guidelines, and application forms, visit the official City Second Loan Program (CSLP) website.