MOHCD Loan Programs

MOHCD provides loans to help first-time homebuyers with downpayments and mortgage tax credit. Current program participants can also refinance their loans.

To apply, 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:

  1. Your financial need
  2. The balances available for each program


See current loan program funding balances »

Apply as first-time homebuyer

Downpayment assistance

  • Downpayment Assistance Loan Program (DALP)

    • Downpayment loan up to $375,000, to bid on a property on the open market.
      • Silent second loan that requires no payments for 30 years, or until you sell 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

    Apply for the 2018 DALP

  • City Second Loan Program

    • Downpayment loan up to $375,000, 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 second position on 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)

    • 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
  • Below Market Rate Downpayment Assistance Loan Program (BMR-DALP)

    • 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


Mortgage tax credit

Mortgage Credit Certificate Program (MCC)

  • 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

Refinance your current loan

Notes for lenders

Submitting applications

Lenders must send MOHCD loan application files through DAHLIA. We will give you login information once you’ve completed MOHCD Lender training.

See more information on workshops and lender training »

  • Loan officers named on loan application forms should match loan officers named on the Final Mortgage Loan Application (form 1003).
  • Supporting documents per Loan Transmittal Form must be an ORIGINAL PDF (no fax or jpeg).

Email to confirm application submission.

Loan Funding

MOHCD requires five (5) business days to fund all downpayment assistance loans from the time of approving the closing documents IF the title or escrow company is using one of the bank accounts that the City has already certified for outgoing wire transfers.

Download information about PDF iconLoan Funding and Wire Transfers