Fees

• No fee to apply for DK-DALP pre-approvals.
• There is a non-refundable fee to process the paperwork of the DK-DALP loan for final approval. This will be collected when the funds are reserved to close on a property. See MOHCD program fees »

DK-DALP Funds Balance

In 2022, MOHCD will distribute $10 million to up to approximately 20-25 households. See Loan Program Funding Balances »

Application Selection

DK-DALP funds are distributed on a first-come, first-served basis with selection priority given to Certificate of Preference (COP) holders, SFHA Section 8 Voucher holders, and HOPE SF residents.

MOHCD will process applications on a daily basis and in the order in which they were received until all DK-DALP funds are reserved or distributed.

Loan Reservation Period

Only one (1) reservation (i.e. pre-approval lottery application) is permitted per eligible household.

Duplicate pre-approval applications from one eligible household, whether with one lender or multiple lenders, will automatically result in disqualification of all applications. Borrowers are encouraged to shop around to find the best participating lender that suits their needs but must choose only one lender in connection with DK-DALP.

A reservation does not constitute final loan approval nor guarantee funding. A DK-DALP loan will only be funded when the borrower fulfills the loan commitment from MOHCD, satisfies the reservation timeline described below, and meets the DK-DALP requirements.

Period	Time span	Action required from:	Description
Purchase Period	90 calendar days	Buyer	The pre-approval is good for 90 calendar days. During this period, borrowers must enter into a sales contract.
DK-DALP Loan Submittal Period	30 calendar days	Lender	Following the execution of a sales contract, the Lender must submit a complete DK-DALP loan packet to MOHCD.
DK-DALP Review Period	15 business days	MOHCD	MOHCD will review the DK-DALP loan packet
Loan Commitment Period	30 calendar days	MOHCD Lender Buyer	Upon loan approval, MOHCD will issue a Commitment Letter that is good for 30 calendar days.

Maximum Loan Amount

The maximum DK DALP loan amount is up to $500,000. The qualifying loan amount will be the minimum amount necessary, based on the borrower’s financial need to buy the home.

Borrowers may not alter their finances on the application to qualify for a larger DK-DALP loan. These include:

• reducing the gift funds stated on the application
• lowering the first mortgage loan amount the borrower was pre-qualified for
• reducing third-party credits and contributions
• Any other changes for the purpose of increasing the DK-DALP loan amounts

Reasonable fee changes resulting from an underestimation of customary closing costs are acceptable.

Wealth Building Grant

Applicants may receive up to $30,000 to be used toward a down payment, closing costs, and/or prepaid items. The grant accrues no interest with no monthly payments and will be completely released after 3 years from the close of escrow. If the property is sold or transferred, or if the borrower is non-compliant with the DK-DALP rules within 3 years, the grant is due back to the City in a lump sum amount.

Borrower Eligibility

• First-time homebuyers: All adult household members must not have any ownership interest in a residential unit for the last three years.
• Maximum Income Limits: household income must not exceed 200% of the Area Median Income (AMI).
  • The combined income of all household members 18 years or older, who will be living in the property, must be included in the determination of income.
• Minimum Borrower Contribution: Borrower must contribute a minimum of 1% from borrower's own funds and/or from gifts. Grants cannot be used to meet the minimum borrower contribution requirements.
• Liquid Assets: Borrower must have no more than $60,000 after purchase. There's no pre-purchase asset limit.
• Post-Purchase Reserves: Borrower must have a minimum of 2 months’ reserves after purchase. In addition to Liquid Assets, vested funds from retirement accounts that permit withdrawals may be also used for reserves. This reserve should include 2 months’ of:
  • Principal
  • Interest
  • Mortgage Insurance (if any)
  • Property taxes
  • Hazard insurance
  • Homeowner’s association dues
• Occupancy: The property must be owner-occupied during the life of the loan.
• Eligible Household Member: An eligible household member must either be:
  • On title and loan of the property. All spouses or domestic partners must be included in the household and must appear on the application, title, and loan.
  • Listed as a dependent on tax returns. All household members who are under 18 years of age must be the legal dependent of an adult household member, as listed on the two most recent tax returns (amended tax returns may not be acceptable to demonstrate a minimum two-year history of an individual's dependency status). An unborn child will be not counted as a household member. Elderly adult household members may be considered as dependents as long as they are listed as dependents on the two most recent tax returns. All income from dependent adults and children must be included in the total household income. A spouse or domestic partner of any titleholder is not considered a dependent.

Financing Requirements

• Primary Financing: Borrowers must be able to qualify for the first mortgage from a MOHCD-approved lender prior to submitting an application for DK-DALP. Borrowers must have sufficient funds to meet the required downpayment, closing costs, and necessary reserves.
• Lien Position: DK-DALP loan must be in the second position behind the first mortgage.
• Impounds: The first mortgage lender must collect and manage impound accounts for property taxes and hazard insurance for the loan term.
• Loan-to-Value Requirements (LTV and CLTV): The minimum Loan-to-Value (LTV) is 50%, and the maximum Combined Loan-to-Value (CLTV) is 105%.
• Debt-to-Income Ratio: Borrower monthly housing debt, including property taxes, property insurance, and if applicable mortgage insurance, and homeowner’s association dues cannot be less than 30% of the household’s gross income. The ratio of monthly housing costs, plus all other monthly debts (including credit cards, car payments, etc.) should not exceed 43% of the household’s gross income.
• Front-End (Housing) Ratio: No less than 30% and no more than 40%. MOHCD may consider a maximum front-end ratio up to 43% if two or more indicators are present:
  • Proven ability to devote a larger amount of income to housing expenses. The applicant has made rental payments for 12 consecutive months that are equal to or greater than the proposed monthly payments for the housing being purchased
  • At least 6 months of housing expenses in reserves through liquid assets, or at least 12 months of housing expenses in reserves through non-liquid assets and retirement accounts
  • FICO score greater than 700
  • A large down payment (20 percent or more) toward the purchase of the property
  • The proposed housing expenses will not increase more than 5% over previous housing expenses
• Back-End (Total Debt) Ratio: No more than 43%.
• Co-Signing: Co-signing for a DK DALP loan by a non-household member is not allowed.
• Loan Signing: No power of attorney is allowed. All applicants must be physically present to sign loan documents.

Loan Terms

• Loan Terms: DK-DALP is a no-interest, no-monthly payment, deferred loan. The principal balance amount plus a share of the appreciation becomes due at the end of term or when the borrower sells, rents, or transfers title on the property.
  • The appreciation is calculated by subtracting the original sales price from the current sales price or the current appraised market value. The share of appreciation is computed as a ratio of the City loan amount to the purchase price.
  • For example, if the borrower receives the DK-DALP loan in the amount of $500,000 with the purchase price of $1,250,000, the DK-DALP loan amount is 40% of the purchase price. Therefore, the share of appreciation would also be 40%.

See all MOHCD loan terms

DALP Manual and Documents

• DK-DALP Application
• MOHCD Lender Closing Checklist
  • For final approval after getting a ratified purchase agreement
• DALP Manual
• Sample DK Closing Documents
• DK-DALP Flyer

DK-DALP Preferred Lenders

Lenders listed below are selected from the MOHCD-approved Lender List and offer first mortgage loan products that meet the basic financing parameters under the DK-DALP program. Your eligibility for a first mortgage loan depends on your finances and credit information. 

Lending Institution	Name	Email Address	Phone	MLS	Accepting new MOHCD clients
All California DBA APM	Stacey Stowe	SStowe@allcalifornia.com	209-890-7548	1489105	✓
Absolute Home Loans (Meriwest Mortgage)	Scott Keller	smsinsf@pacbell.net	415-794-7841	00963841	✓
Bank of America	Derek Kam	derek.kam@bofa.com	314-766-0998	633695	✓
Bank of America	Mya (Jasmine) Aye	Mya.aye@bofa.com	415-213-4616	483427	✓
Bank of America	Roddy Cheung	Roddy.s.cheung@bofa.com	510-901-4573	482433	✓
Bank of America	Katherine Xinyuan Yang	xinyuan.yang@bofa.com	925-259-3871	1793762	✓
Bank of America	Sandy Wong	sandy.wong@bofa.com	650-457-6416	956185	✓
Best Capital Funding (Meriwest Mortgage)	Kevin Brindley	kevin@myhomegateway.com	415-747-2334	353910	✓
Caliber Home Loans	Sharon Nguyen	sharon.nguyen@caliberhomeloans.com	408-472-5959	404847	✓
Caliber Home Loans	Leslie Harvey	Leslie.Harvey@caliberhomeloans.com	925-357-6264	417783	✓
First Republic Bank	Derrick Yee	dyee@firstrepublic.com	650-926-7035	654284	✓
First Republic Bank	Sean Fitzgerald	sfitzgerald@firstrepublic.com	415-296-5775	656025	✓
First Republic Bank	Hilary Byrde	hbyrde@firstrepublic.com	415-834-7239	1157843	✓
First Republic Bank	Kimberly Nguyen	kimberlynguyen@firstrepublic.com	650-234-8853	1741292	✓
Guarantee Mortgage DBA APM	Bob Bednarz	bbednarz@guaranteemortgage.com	415-891-3405	259771	✓
Guaranteed Rate	Jeff Parrott	Jeff.parrott@guaranteedrate.com	415-694-5518	318227	✓
Guaranteed Rate	Glenn Rodriguez	Glenn.Rodriguez@rate.com	415-570-0400	238969	✓
Guaranteed Rate	May Montana	may.montana@guaranteedrate.com	415-710-6651	239533	✓
Guaranteed Rate	Kelley Dawson Sessions	Kelley.DawsonSessions@rate.com	415-462-0037	2185266	✓
Guild Mortgage	Sandra Smith	sandras@guildmortgage.net	510-301-0198	255924	✓
Guild Mortgage	Susannah Harte	susannahh@guildmortgage.net	510-409-1061	473612	✓
Guild Mortgage	Janene Towner-Chernoff	jtowner@guildmortgage.net	408-825-0250	287633	✓
Norcal Capital Group Inc	Winnie Liu	Winnieliu1688@gmail.com	415-517-2800	339654	✓
TSE	Gina Tse	ginatselouie@tsefinancial.biz	415-566-5363	247148	✓
TSE	Matthew Henderson	matthewH@TSEFinancial.biz	415-729-6020	333882	✓
Umpqua Bank	Nelson Wong	nelsonwong@umpquabank.com	415-268-8057	206278	✓
Union Bank	Vincent Cortese	vincent.cortese@unionbank.com	415-652-5345	726054	✓
Union Bank	Sean Crowley	sean.crowley@unionbank.com	415-574-0264	997988	✓
Vann Investment & Realty, Inc.	Nicole Lai	loan@rateking.net	510-366-8796	1305006	✓

DK-DALP Sales Agent List

Please note: As an applicant of the DK-DALP, you are not obligated to work with any of the sales agents listed below. This list is being provided as a resource only.

Name	Company	Contact Information
Ingrid Soluaga	Realty ONE Group Zoom	415-999-2535 or realtorisoluaga@gmail.com
Shanda Mayfield	Coldwell Banker Realty	415-240-3868 or shandamayfield@gmail.com
Robert Belli	Compass	415-317-8540 or rob.belli@compass.com
Martin Encinas Leon	Harper Real Estate	415-652-4532 or martin@harperre.com
Leilani Ishaan	Corcoran Global Living	415-846-5366 or leilani.Ishaan@corcorangl.com
Veronica Gray	KAI Real Estate	510-205-1418 or  veronica.gray@kairealestate.com
PaPa Correa	KH Realty	415-710-6817
Jeffrey Banks	Compass	415-505-3722 or JeffreyBanks@sfrealproperty.com
Patricia Johnson	Compass	415-377-3732 or patjohnson415@gmail.com
Stephanie Christmas	Keller Williams Realty	510-453-8987 or 1realchristmas@gmail.com
Jonathan Dearman	Dearman Realty	415-244-8694 or jonathan@cityrealestatesf.com
Molli Milner	Dearman Realty	415-595-5852 or molli@dearmanrealty.com or molli@cityrealestatesf.com
Denise Kees	Kees Realty	510-453-8987 or 510-927-4444 or denise@keesrealty.net
Lorraine Dacanay Breaux	Twin Oaks Real Estate	415-420-8111 or Lorraine@twinoaksre.com
Jonisha Smith	Better Homes & Gardens, Reliance Partners	510-834-2010 or 510-589-5363 or Jonisha.smith@bhghome.com
Ryley Gaulocher	Vanguard Properties	608-345-3770 or ryleyg@vanguardsf.com
Leslie Marie	Berkshire Hathaway Home Services Drysdale Properties	510-707-1177 or leslieIsMyRealtor@gmail.com
Rome Jones	Brivio Realty	415-553-0992 or rome@brivio.com
Whitney Gregory	Corcoran Global Living	415-966-6698 or whitney.gregory@corcorangl.com
Destiny Brown	Real Estate Revolution	415-802-3544 or destiny@rerevolution.biz
Michael Wayne Jackson	Coldwell Banker Realty	415-483-6009 or Michael.jackson@cbnorcal.com