FIRST RESPONDERS DOWNPAYMENT MORTGAGE ASSISTANCE LOAN PROGRAM DRAFT

Borrower’s Qualification Requirements:

• Must be an active member of the San Francisco Police Department, San Francisco Fire Department, or the San Francisco Sheriff’s Department. 
• Must not have owned any interest in a principal residence in San Francisco during the last three years.
• Must not own an interest in any other principal residence at close of escrow.
• Must be able to obtain and submit a written verification of employment from their department or authorize DHR to provide equivalent verification directly to MOHCD.
• Must have at least 5% downpayment contribution towards the purchase price. A minimum of 3% must be from the borrower’s own funds.   The remaining 2% can be from gift funds.
• Must complete a home buyer counseling course from one of the participating non-profit housing counseling agencies approved by the Mayor’s Office of Housing and Community Development (MOHCD).
• Must occupy the property as principal residence after purchase.
• Each household is limited to one loan, regardless of the number of First Responders in that household.

Household income is limited to 200% of the Area Median Income as published by MOHCD

Property Requirements:

• Must be a single family residence (which include condominiums and townhouses) located in the City and County of San Francisco only.  Commercial properties, mixed-use or investment properties are not allowed.

Financing Requirements:

• Be able to obtain a first mortgage loan approval and loan commitment from MOHCD participating lender.
• First mortgage must be 30 years fixed rate, fully amortizing mortgage.
• Must have a higher than 28% front-end debt-ratio (housing cost which includes: principal, interest, taxes, insurances and homeowners association dues) and not to exceed 45% back-end debt-ratio (housing cost plus all other unsecured debt) over a borrower’s gross monthly income.
• Combined Loan-to-Value Requirement (CLTV) not to exceed 95% of the purchase price.
• Combined household liquid assets after purchase of property cannot exceed $100,000.  All other liquid cash assets above $100,000 must be used towards the purchase first.
• Maximum First Responder DALP loan amount up-to $100,000 or 15% of the purchase price, whichever is less. Applicants can apply for less than $100,000. 
• Qualifying loan amount is based upon a graduated scale depending on income levels and liquid assets.  Loan amount will be decreased by $20,000 for every additional $100,000 of liquid assets contributed by the borrower above a 20% combined downpayment.
• Loan is deferred for 30 years, due on sale, rent or title transfer.  Property must be owner occupied at all times.
• Borrower must remain an active member of the SFPD, SFFD, or SFSD for a minimum of five years following the approval of the loan.  Should borrower’s status change prior to five years, the full amount of the loan, plus share of appreciation is immediately due, subject to final review and approval by the Director of MOHCD.
• No pre-payment penalty to repay this loan prior to the due date.
• Repayment amount will include the principal loan amount plus share of appreciation of the property.

Please visit www.sf-moh.org for more information or sign-up for a homebuyer workshop from one of the participating housing counseling agencies listed in the MOHCD website. 

Questions: Please call Jeanne Lu at 415-701-5500 or email sfhousinginfo@sfgov.org