Dream Keeper Downpayment Assistance Loan Program (DK-DALP) came as part of Mayor London Breed's Dream Keeper Initiative. To learn more, visit www.dreamkeepersf.org
Through the DK-DALP, MOHCD is providing an additional opportunity for low to middle-income buyers to compete in San Francisco’s high-cost housing market.
The DK-DALP is a down payment loan up to $500,000 to bid on a property on San Francisco's open market. The loan must be used on the downpayment of a residential property that will become a primary residence. The owner can re-sell the unit at market prices.
The DK-DALP is a silent second loan that requires no monthly payments. When the property is sold or transferred, the owner pays MOHCD back the principal amount of the loan, plus an equitable share of appreciation.
Applicants are encouraged to work with a MOHCD-approved lender on the DK-DALP preferred list.
Back to topHow to apply for DK-DALP
Before applying, the applicant must complete the following steps:
- Attend a DK Homeownership Information Session
- Complete a DK one-on-one counseling session with a DK Housing Counseling Agency
- Complete 10 hours of first-time homebuyer education
- Obtain a first loan pre-approval from a MOHCD-approved lender
- Complete the DK-DALP Readiness Form to certify that you have completed all of the above steps. Upon certification, you will see a link to download the DK-DALP Application.
- Complete the DK-DALP Application and gather your required documents into one PDF
- Upload the PDF via this secure link (click to access the link)
If you have technical issues uploading your complete application packet, contact Aneka.Harrell@sfgov.org
Back to topFees
There is no fee to apply for DK-DALP pre-approvals.
There is a non-refundable fee to process the paperwork of the DK-DALP loan for final approval. This will be collected when the funds are reserved to close on a property. See MOHCD program fees.
Back to topApplication selection
DK-DALP funds are distributed on a first-come, first-served basis with selection priority given to Certificate of Preference (COP) holders, SFHA Section 8 Voucher holders, and HOPE SF residents.
MOHCD will process applications on a daily basis and in the order in which they were received until all DK-DALP funds are reserved or distributed.
Back to topLoan reservation period
Only one (1) reservation (i.e. pre-approval lottery application) is permitted per eligible household.
Duplicate pre-approval applications from one eligible household, whether with one lender or multiple lenders, will automatically result in disqualification of all applications. Borrowers are encouraged to shop around to find the best participating lender that suits their needs but must choose only one lender in connection with DK-DALP.
A reservation does not constitute final loan approval nor guarantee funding. A DK-DALP loan will only be funded when the borrower fulfills the loan commitment from MOHCD, satisfies the reservation timeline described below, and meets the DK-DALP requirements.
| Period | Time span | Action required from: |
|---|---|---|
| Purchase Period The pre-approval is good for 90 calendar days. During this period, borrowers must enter into a sales contract. | 90 calendar days | Buyer |
| DK-DALP Loan Submittal Period Following the execution of a sales contract, the Lender must submit a complete DK-DALP loan packet to MOHCD. | 30 calendar days | Lender |
| DK-DALP Review Period MOHCD will review the DK-DALP loan packet | 15 business days | MOHCD |
| Loan Commitment Period Upon loan approval, MOHCD will issue a Commitment Letter that is good for 30 calendar days. | 30 calendar days | MOHCD Lender Buyer |
Maximum loan amount
The maximum DK DALP loan amount is up to $500,000. The qualifying loan amount will be the minimum amount necessary, based on the borrower’s financial need to buy the home.
Borrowers may not alter their finances on the application to qualify for a larger DK-DALP loan. These include:
- reducing the gift funds stated on the application
- lowering the first mortgage loan amount the borrower was pre-qualified for
- reducing third-party credits and contributions
- Any other changes for the purpose of increasing the DK-DALP loan amounts
Reasonable fee changes resulting from an underestimation of customary closing costs are acceptable.
Back to topWealth building grant
Applicants may receive up to $30,000 to be used toward a down payment, closing costs, and/or prepaid items. The grant accrues no interest with no monthly payments and will be completely released after 3 years from the close of escrow. If the property is sold or transferred, or if the borrower is non-compliant with the DK-DALP rules within 3 years, the grant is due back to the City in a lump sum amount.
Back to topBorrower eligibility
- First-time homebuyers: 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 200% of the Area Median Income (AMI).
- The combined income of all household members 18 years or older, who will be living in the property, must be included in the determination of income.
- Minimum Downpayment: Borrower must contribute a minimum of 1% of the purchase price toward the down payment or closing costs. The entire 1% can come from gifts, if necessary.
- Liquid Assets: Borrower must have no more than $60,000 after purchase.
- Post-Purchase Reserves: Borrower must have a minimum of 2 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 2 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.
- Household Size: The size of a Household must be no greater than the total number of bedrooms in the Property plus one (1). In other words, a single person may purchase a two-bedroom property or a smaller property if they choose; a two-person household may purchase a three-bedroom property or a smaller property if they choose; and so on.
- 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. All household members who are under 18 years of age must be the legal dependent of an adult household member, as listed on the two most recent tax returns. An unborn child will be not counted as a household member. Elderly adult household members may be considered dependents as long as they are listed as dependents on the two most recent tax returns. All income from dependent adults and children must be included in the total household income. A spouse or domestic partner of any titleholder is not considered a dependent.
Financing requirements
- Primary Financing: Borrowers must be able to qualify for the first mortgage from an approved lender prior to submitting an application for DALP. Borrowers must have sufficient funds to meet the required downpayment, closing costs, and necessary reserves.
- Lien Position: DK-DALP loan must be in the second position behind the first mortgage.
- Impounds: The first mortgage lender must collect and manage impound accounts for property taxes and hazard insurance for the loan term.
- Loan-to-Value Requirements (LTV and CLTV): The minimum Loan-to-Value (LTV) is 50%, and the maximum Combined Loan-to-Value (CLTV) is 105%.
- Debt-to-Income Ratio: Borrower monthly housing debt, including property taxes, property insurance, and if applicable mortgage insurance, and homeowner’s association dues cannot be less than 30% of the household’s gross income. The ratio of monthly housing costs, plus all other monthly debts (including credit cards, car payments, etc.) should not exceed 45% of the household’s gross income.
- Front-End (Housing) Ratio: No less than 30% and no more than 43%. MOHCD may consider a maximum front-end ratio of up to 45% if two or more indicators are present:
- Proven ability to devote a larger amount of income to housing expenses. The applicant has made rental payments for 12 consecutive months that are equal to or greater than the proposed monthly payments for the housing being purchased
- At least 6 months of housing expenses in reserves through liquid assets, or at least 12 months of housing expenses in reserves through non-liquid assets and retirement accounts
- FICO score greater than 700
- A large down payment (20 percent or more) toward the purchase of the property
- The proposed housing expenses will not increase more than 5% over previous housing expenses
- Back-End (Total Debt) Ratio: No more than 45%.
- Co-Signing: Co-signing for a DK-DALP loan by a non-household member is not allowed.
- Loan Signing: No power of attorney is allowed. All applicants must be physically present to sign loan documents.
- Closing Costs: DK-DALP funds may be used to cover customary, non-recurring closing costs normally incurred in a residential real estate transaction, and subject to MOHCD's approval in its sole discretion.
Loan terms
- Loan Terms: DK-DALP is a no-interest, no-monthly payment, deferred loan. The principal balance amount plus a share of the appreciation becomes due at the end of term or when the borrower sells, rents, or transfers title on the property.
- The appreciation is calculated by subtracting the original sales price from the current sales price or the current appraised market value. The share of appreciation is computed as a ratio of the City loan amount to the purchase price.
- For example, if the borrower receives the DK-DALP loan in the amount of $500,000 with the purchase price of $1,250,000, the DK-DALP loan amount is 40% of the purchase price. Therefore, the share of appreciation would also be 40%.
See all MOHCD loan terms.
Back to topDALP Documents
- You will first be required to complete the online DK-DALP Readiness Form
- 2023 DALP Manual
- MOHCD Lender Closing Checklist (fillable PDF)
- For final approval after getting a ratified purchase agreement
- Sample DK Closing Documents (PDF)
- DK-DALP Flyer (PDF)
DK-DALP sales agent list
Please note: As an applicant of the DK-DALP, you are not obligated to work with any of the sales agents listed below. This list is being provided as a resource only.
Assurity Realty Corporation
Lakisha Hill
510-221-6203 or 510-992-9865
Lakisha@assurityrealty.com
Bay Area Real Estate Company
Amy Ruffin
510-424-7567
amy@livingbythebay.com
Berkshire Hathaway Home Services
Denise Parker
510-917-6060
DeniseParkerrealtor@gmail.com
Berkshire Hathaway Home Services Drysdale Properties
Leslie Marie
510-707-1177
leslieIsMyRealtor@gmail.com
Better Homes & Gardens, Reliance Partners
Janet Wilson
415-571-7732
janet.wilson@bhghome.com
Jonisha Smith
510-834-2010
510-589-5363
Jonisha.smith@bhghome.com
Solomon Cooper
510-725-7455
Solomon.cooper@bhghome.com
Bravo Brokerage
Anastasia Maxwell
925-565-3605
sunshina13@yahoo.com
Brivio Realty
Patricia Johnson
415-377-3732
patjohnson415@gmail.com
Rome Jones
415-730-0732
rome@brivio.com
Coldwell Banker Realty
Kimberley Stitt
415-519-5175
415-532-9577
Kimberley.kingstitt@cbrealty.com
Michael Wayne Jackson
415-483-6009
Michael.jackson@cbnorcal.com
Shanda Mayfield
415-240-3868
shandamayfield@gmail.com
Compass
Jeffrey Banks
415-505-3722
JeffreyBanks@sfrealproperty.com
Robert Belli
415-317-8540
rob.belli@compass.com
Steve Williams
510-872-2360 or 415-602-8912
steve.williams@compass.com
Veronica Gray
510-205-1418
veronicagray@compass.com
Complex Living Real Estate
Michelle Thomas
925-289-9013
Michelle@ComplexLivingRealEstate.com
Sharae Brown
415-637-1437
Sharae@complexlivingrealestate.com
Corcoran Icon Properties
Leilani Ishaan
415-846-5366
Leilani.ishaan@corcoranicon.com
Whitney Gregory
415-966-6698
whitney.gregory@corcoranicon.com
Dearman Realty
Jonathan Dearman
415-244-8694
jonathan@cityrealestatesf.com
Molli Milner
415-595-5852
molli@dearmanrealty.com
molli@cityrealestatesf.com
Fast Agent
Rosa Moreno
619-204-3323
Rosa@fastagents.com
Harper Real Estate
Martin Encinas Leon
415-652-4532
martin@harperre.com
Intero Real Estate Services
Amos Chris Wright
415-724-8270
acwrightproperties@gmail.com
Kees Realty
Denise Kees
510-453-8987
510-927-4444
denise@keesrealty.net
Keller Williams Realty
Joel Borden
415-694-9770
Joel.Borden@kw.com
Shanita Fleming
916-704-7505
shanita.fleming@kw.com
Stephanie Christmas
510-453-8987
1realchristmas@gmail.com
KH Realty
PaPa Correa
415-710-6817
Kinetic Real Estate
Montaiesha Hayes
415-912-6037
montaiesha@kineticrealestate.com
Taja S. Conley
925-826-6419
taja@kineticrealestate.com
Pacific Edge Real Estate
Cynthia Pagán
415-317-0589
cynthia@pacificedgesf.com
RE/MAX Gold
Poncé Deleong Smith
916-836-3114
916-470-7290
Ponce@YourHouseTeam.net
RE/MAX Prestigious Properties
Marie Sturgell
415-671-6948
marie@realestatebayareas.com
Real Estate Revolution
Destiny Brown
415-802-3544
destiny@rerevolution.biz
Realty ONE Group Zoom
Ingrid Soluaga
415-999-2535
realtorisoluaga@gmail.com
The Real Estate Liaison
Chris J. Edwards
415-881-4526
Chrisjedwards@fastagents.com
Twin Oaks Real Estate
Lorraine Dacanay Breaux
415-420-8111
Lorraine@twinoaksre.com
Vanguard Properties
Ryley Gaulocher
608-345-3770
ryleyg@vanguardsf.com
Vylla Homes
Katrina Major
209-259-1150
209-471-2440
katrina.major@vylla.com