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:
- Your financial need
- The balances available for each program
See current loan program funding balances.
Downpayment Assistance Loan Program (DALP) for first-time homebuyers
This program provides a downpayment loan up to $500,000 to bid on a property on the open market.
City Second loans are available to City Second listing applicants on a first-come first-served basis.
Mortgage Tax Credit
Downpayment assistance for first-time homebuyers
Downpayment Assistance Loan Program (DALP) summary
- Downpayment loan up to $500,000, to bid on a property on the open market.
- Silent second loan that requires no payments until you sell or transfer 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 $500,000, 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 the second position on the 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.