MOHCD loan programs

MOHCD provides loans to help first-time homebuyers with down payment and mortgage tax credit. MOHCD also provides assistance to current program participants who refinance their loans.

Applying for a MOHCD loan

To apply for a MOHCD loan program, you must complete homebuyer education and get a mortgage loan pre-approval letter from a MOHCD-approved lender. There are different income requirements for each program. You will work closely with your lender when you participate in any of our loan programs. 

After you are approved, there are service fees to process your MOHCD loan. See program service fees.

Loan amounts depend on:

  1. Your financial need
  2. The balances available for each program

See current loan program funding balances.

Downpayment assistance for first-time homebuyers

Downpayment Assistance Loan Program (DALP) summary

  • Downpayment loan up to $375,000, to bid on a property on the open market.
    • Silent second loan that requires no payments for 30 years, or until you sell the unit
  • You can re-sell the unit at market prices
  • An annual lottery assigns applicants to a rank order
    • MOHCD will process applications in lottery rank order
    • There are additional DALP funds available for first responders and SFUSD educators

See details about applying for DALP.

City Second Loan Program summary

  • Downpayment loan up to $375,000, to bid on a collection of properties also advertised on the open market
    • There is no interest, no deferred payment, and no prepayment penalty
    • Sits in second position on title after the first mortgage
  • You can re-sell the unit at market prices, but the City has the option of selecting a buyer from the City Second Loan Program to match the first bid
  • Loans are available to City Second listing applicants first-come first-serve

See information for City Second buyers.

Teacher Next Door Program (TND) summary

  • Only for SFUSD educators
  • Downpayment loan up to:
    • $40,000 on a market rate unit (DALP or City Second)
    • $20,000 on a mixed-income below-market-rate unit
  • Typically layered on top of other MOHCD loan programs, if additional funding is needed.
    • Forgiven after 10 years, if all program requirements are met
  • Work with your lender to apply for TND

See details about the Teacher Next Door program.

Below Market Rate Downpayment Assistance Loan Program (BMR-DALP) summary

  • Downpayment loan as needed, for a homebuyer purchasing a mixed-income unit
    • Requires no monthly payment and accrues no interest
  • Work with your lender to apply for BMR-DALP

See details about the BMR-DALP.

Mortgage tax credit

Mortgage Credit Certificate (MCC) summary

  • Helps homebuyers qualify for a mortgage loan and reduce their effective mortgage interest rate
    • Deduct 15% of your mortgage interest from your annual tax debt
  • Work with your lender to apply for MCC

See details about the Mortgage Credit Certificate.

Refinance your current loan

You must work with an approved lender to refinance.

General refinancing & subordination summary

  • For eligible City loans or Below Market Rate (BMR) liens
  • When you refinance the existing first mortgage, you must have MOHCD approval

Read more about general refinancing and subordination.

Reissue Mortgage Credit Certificate (RMCC) summary

  • For current homeowners with a MCC.
  • Get a new MCC with a tax credit at the same rate as the original MCC.

Read more about the Reissue Mortgage Credit Certificate.