Announcing SF First Responder Downpayment Assistance Loan Program

The Mayor's Office of Housing and Community Development (MOHCD) is pleased to announce the First Responders Downpayment Assistance Loan Program (FRDALP). All active members of San Francisco Police Department (SFPD), San Francisco Fire Department (SFFD) and San Francisco Sheriff’s Department will be eligible to participate in this program.

The Mayor's Office of Housing will begin taking pre-qualification applications for the FRDALP on Thursday, August 1, 2013. Funding for this new program has been made available by the Housing Trust Fund. To find out the detail requirements, please visit our website:
http://sf-moh.org/index.aspx?page=321

To qualify for a First Responders Downpayment Assistance Loan (FRDALP), an applicant:

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
Liquid assets include all sources of monies from savings, checking accounts or investments held by any occupant of the Borrower’s household, including minors and any fund is available to liquidate. Liquid Assets will not include funds held in a pension account, retirement fund, 401K plan, or similar asset that is not available for purchase of the property or liquidation.
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. Loan amount will be decreased by $20,000 for every additional $100,000 contributed by the borrower above a 20% 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 from the date the home is purchased. Should borrower’s status change prior to five years, the full amount of the loan, plus share of appreciation is immediately due.
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.

Income Limits for 2013:
Household Size
1 person, $141,500
2 persons, $162,000
3 persons, $182,000
4 persons, $202,500