Mortgage Assistance Loan Program (MALP)

For current homeowners who have missed payments and are at risk of foreclosure

If payments for your primary residence exceed 40% of your monthly income and you are behind, MOHCD's Mortgage Assistance Loan Program (MALP) can help. It is a no-interest deferred loan with no monthly payments. 

You can use MALP funds on:

  • Mortgage payments
  • HOA dues
  • Property taxes
  • Special assessments (ex: renovation costs passed down to residents)

MALP loan terms

  • Maximum: $50,000, or 90% of the available equity, whichever is less
  • Repayment: The loan is repaid when you sell your property. Instead of interest, you pay an equitable share of any appreciation when you sell. The loan can be repaid in 10 years, if all program rules are followed. If you break program rules, the loan is due immediately. Program rules include:
    • Occupation restrictions: You must live at the property prior to and during the duration of the MALP loan.
    • MOHCD program restrictions: If you used MOHCD programs to purchase the unit, you must also follow the rules for that program. This includes annual monitoring.

How to apply for MALP funds

  1. Work with a HUD-approved housing counseling agency to look over your options

    1. Refer to Homeownershipsf.org/ForeclosurePrevention for the list of agencies.
    2. Your counselor will help you create a budget action plan, which may include:
      • Monthly budget
      • Monthly income
      • Record of financial deficiency
    3. Your counselor must exhaust all other possible options before applying for MALP.
      • This may include negotiating on your behalf, with your first mortgage lender or HOA.
  2. Fill out the Microsoft Office document iconMALP application with your HUD-approved housing counselor

    This application will include:

    • Your budget action plan, detailing your financial hardship and ability to pay.
  3. If approved for MALP funds, work with MOHCD to complete the process

    • We'll also request an appraisal from a licensed appraiser. 
    • You'll sign a promissory note and deed of trust

MALP documents
For housing counselor reference