BMR Downpayment Assistance Loan Program (BMR DALP) Overview




Financial assistance made available under the Below Market Rate Downpayment Assistance Loan (BMR DALP) Program may only be used to cover the need-based downpayment assistance for low and moderate income households who otherwise would not be able to purchase a BMR. The City and County of San Francisco (the “City”), Mayor’s Office of Housing and Community Development (MOHCD) will only extend loan funds when is necessary for a borrower to qualify for an affordable mortgage, in conjunction with a BMR purchase.


In accordance with the Program guidelines and its purpose, the participating lenders shall assume the following roles and responsibilities:

  • Lender determines the Borrower’s financial ability to purchase the desired property.

  • Lender is to make every effort to qualify the Borrower for the maximum financing on the first mortgage.

  • Lender submits the Needs Assessment Worksheet and evidence of financing the maximum 1st mortgage loan amount when submitting an application for a BMR DALP loan.


To qualify for a BMR Down payment Assistance Loan (BMR DALP), an applicant must:

  • Have a purchase approval letter for a BMR unit issued by the Mayor's Office of Housing and Community Development (MOHCD)
  • Be a first time homebuyer under the rules and policies of the MOHCD BMR program
  • Meet all program requirements and approvals for a BMR DALP loan
  • Complete homeownership counseling at a MOHCD approved agency
  • Have a mortgage loan approval and commitment letter from a participating first mortgage lender with a fixed rate loan and 30 year term
  • Demonstrate need for down payment assistance to purchase the BMR unit (determined by MOHCD)
  • Be within the required income limits published by MOHCD and HCD
  • Have higher than 33% housing front-end debt-ratio before using the BMR DALP and maximum of 43% back-end debt ratio (housing, plus all other unsecured debt)
  • Mortgage Credit Certificate (MCC) eligibility based on BMR Approval Letter from MOH (Obtain from borrower or seller' agent)

IMPORTANT: All adult household members who will be on the loan and Title must have a first-time homebuyer workshop certificate ready at the time of application. The homebuyer workshop certificate must be issued within 6 months from the date of the application. If your certificate is older than 6 months, please contact the counseling agency which issued your certificate.  Please also submit updated verification of income if i.e. three current and consecutive pay stubs with year-to-date (YTD) and VOE; Federal Income Tax Return (included all schedules, signed and dated) and W-2 forms to complete set of three (if applicable); All pages of last 3 months bank statements for checking, savings & other pertinent investment accounts.

San Francisco Mayor’s Office of Housing and Community Development BMR DALP Program will:

  • Extend the maximum loan amount for the lessor of: 1) Amount of need established by the Needs Assessment Worksheet (based on maximum financing); or 2) Maximum BMR DALP loan amount, up to 15% of the sales price. Under no circumstances will the City provide funds to a homebuyer in excess of what is needed to close the loan.
  • Require no monthly payments and accrue no interest
  • Be due at the end of 30 years, with a share of the appreciation on the unit proportional to original percentage of the loan
  • Be paid in full including any share of appreciation at the time of repayment
  • Be pre-payable with any applicable share of appreciation at any time with no pre-payment penalty
  • Assistance is available to buyer households who make no more than the maximum income pertaining to the BMR unit being purchased.  Please refer to listing for income details.

Additional Requirements:

  • The buyer must provide at least a 5% down payment towards the purchase price; minimum of 3% must be from the buyer's own funds and the remaining 2% can be gifts.  The borrowers 5% contribution should be applied as downpayment towards the purchase and not closing costs.
  • As a general guideline, our office will issue a BMR DALP loan only if the buyer's housing expenses or front-end debt-ratio is higher than 33% of income before the loan is incorporated
  • With the assistance of the BMR DALP, BMR buyers must carry a first mortgage loan that equals at least 33% housing front-end debt-ratio and no more than 43% back-end debt-ratio (housing and all other unsecured debt) 
  • The BMR DALP may be used to lower a buyer’s housing costs only, and may not be used to offset other consumer debt. The BMR DALP may be used to lower the buyer's housing costs to 33% of income and no lower
  • First mortgage loan-to-value (LTV) must not be less than 50%
  • Household must have at least 3 to 6 months reserves, if approved, after close
  • Buyers must retain no more than $15,000 in liquid cash assets after using the BMR DALP. The actual loan amount granted to a buyer household is subject to MOHCD's review and discretion
  • The BMR DALP must be used in conjunction with a first mortgage loan, household must provide Loan Estimate form from the first mortgage lender
  • The buyer’s first mortgage loan will take first place in lien priority order; the City BMR lien will take second place (this is the difference between the fair market value and the restricted BMR value); the BMR DALP will take 3rd place; and all other loans must follow
  • Household must have an Impound Account
  • Household must have H06 Insurance

Other than specified herein, all other BMR and DALP program requirements shall apply.

How to Obtain a BMR DALP:
A BMR Down payment Assistance Loan (BMR DALP) applicant must work with a MOHCD participating lender.

Please use DALP link to access

PDF iconCombined DALP Application 2-2017

PDF iconBMR DALP Announcement 2016-11


How to become a BMR and BMR DALP Lender:
All Mortgage Loan Officers and brokers who will originate BMR DALP loans must complete all required DALP, MCC and BMR lender training provided by MOHCD and must have a NMLS ID. The MLO must be familiar with MOHCD lending guidelines, forms, timeline and must ensure that their lending institution can lend to a BMR home buyer. Please click here for Lender Workshops/Training.

For more information, please call 415-701-5500 or email