Special loan programs for buyers in San Francisco

“MCC” – San Francisco Mortgage Credit Certificate Program

Essentially is a tax credit on your mortgage payment.

Program Limits:

  • First-time homebuyer (cannot have owned for past 3 years)
  • Purchase price limits
  • Income limits-this changes year to year because it is based on median income

For more information:

MCC Program Highlights


Down payment Assistance Program (DALP)

This program is very cool.  It is for low to moderate income buyers.  The city makes a second on any property in San Francisco that is silent, meaning that there are no payments made on the loan by the borrower for 40 years.  The loan must be paid off in 40 years along with 20 percent of the appreciation.

  • Income limits
  • Purchase price limit
  • Loan amount limit
  • First time buyer
  • Must be owner occupied-unless approved by Mayor’s Office of Housing (may allow temporary rental)

DALP Program


“BMR”  – San Francisco Redevelopment Agency Below Market Rate

This program is for specific properties in the program.  The units are intended to always remain in the program, so you wouldn’t get the benefit of appreciation as you would in market rate housing.

Program Limits:

  • First-time homebuyer
  • Income limits
  • Limited equity program: You cannot resell at market price, essentially cannot sell for a profit or build equity except for mortgage pay downs
  • Must enter a lottery for chance to submit an application

For More Information:

Below Market Purchase Program

FHA Financing

A federally backed loan program that allows buyers to make smaller down payments. Pre-approved lenders have this program available.  You do not have to be a first-time buyer, but you do need to be an owner occupant.

  • Allows 3.5% down payment
  • Allows lower credit scores
  • Loan limits
  • Requires upfront mortgage insurance premium (which can be financed) plus monthly mortgage insurance premium (adds about .5% to the interest rate)

Many mortgage brokers can help you with this financing.  If you need a referral, please let me know.