Hey there! Navigating the home-buying process in San Francisco can feel overwhelming, especially with the city’s high property prices. But don’t worry—there’s a fantastic resource that might be just what you need: the Downpayment Assistance Loan Program (DALP). Let’s break it down together.

What Is DALP?

The Downpayment Assistance Loan Program (DALP) is an initiative by San Francisco’s Mayor’s Office of Housing and Community Development (MOHCD) designed to help first-time homebuyers like you.

It offers a deferred-payment, “silent second” loan of up to $500,000 to assist with your down payment on a market-rate property in San Francisco.

“Silent second” means you won’t have to make monthly payments on this loan. Instead, you’ll repay the principal amount plus a share of the property’s appreciation when you sell or transfer the home.

Who Can Apply?

To be eligible for DALP, you need to meet a few criteria:

• First-Time Homebuyer – You must not have owned any residential property in the past three years.
• Income Limits – Your household income should not exceed 200% of the Area Median Income (AMI).
  • For example, the maximum income for a one-person household is $209,800, and for a four-person household, it’s $299,700. (Source)
• Owner Occupancy – The property must be your primary residence during the life of the loan.
• Homebuyer Education – Completion of a homebuyer education course from an approved provider is required.

Benefits of DALP

• Substantial Assistance – With up to $500,000 available, DALP can significantly reduce the financial barrier to homeownership in San Francisco.
• Deferred Payment – No monthly payments are required on the DALP loan, easing your monthly financial obligations.
• Market-Rate Purchase – You’re free to purchase a market-rate property, providing flexibility in your home choice.

Considerations

While DALP offers substantial benefits, it’s important to be aware of certain aspects:

• Shared Appreciation – When you sell or transfer the property, you’ll repay the principal loan amount plus a share of the property’s appreciation. This means if your home’s value increases, a portion of that increase will be owed to the city.
• Application Process – The program operates through a lottery system, and the application period is time-sensitive. It’s essential to be prepared and submit your application on time.

How to Apply

1. Complete a Homebuyer Education Course – Attend an approved course through the MOHCD.
2. Prepare Financial Documentation – Gather pay stubs, tax returns, and bank statements.
3. Enter the DALP Lottery – Submit your application during the specified lottery period.
4. Wait for Lottery Results – Applicants are selected based on a lottery system.

Program Type

• Loan Type – Deferred-payment loan.
• Assistance Type – Down payment assistance.

Final Thoughts

The San Francisco DALP could be your ticket to owning a home in one of the most competitive markets in the country. While it does require careful planning and attention to the lottery schedule, the potential savings and support make it well worth exploring.

Ready to take the next step? Visit the official DALP website to learn more and prepare your application today!

Category: California

Subcategory: San Francisco County