Dream Keeper Downpayment Assistance Loan Program (DK-DALP)

Dream Keeper Downpayment Assistance Loan Program (DK-DALP) came as part of Mayor London Breed's Dream Keeper Initiative. To learn more, visit www.dreamkeepersf.org

Through the DK-DALP, MOHCD is providing an additional opportunity for low to middle-income buyers to compete in San Francisco’s high-cost housing market.

The DK-DALP is a down payment loan up to $500,000 to bid on a property on San Francisco's open market. The loan must be used on the downpayment of a residential property that will become a primary residence. The owner can re-sell the unit at market prices.

The DK-DALP is a silent second loan that requires no monthly payments. When the property is sold or transferred, the owner pays MOHCD back the principal amount of the loan, plus an equitable share of appreciation.

Applicants are encouraged to work with a MOHCD-approved lender on the DK-DALP preferred list.

Program Details

How to apply for DK-DALP

Before applying, the applicant must complete the following steps:

  1. Attend a DK Homeownership Information Session
  2. Complete a DK one-on-one counseling session with a DK Housing Counseling Agency
  3. Complete 10 hours of first-time homebuyer education
  4. Obtain a first loan pre-approval from a MOHCD-approved lender (See below for a list of DK-DALP Preferred Lenders)
  5. Complete the DK-DALP Readiness Form to certify that you have completed all of the above steps. Upon certification, you will see a link to download the DK-DALP Application.
  6. Complete the DK-DALP Application and gather your required documents into one PDF
  7. Upload the PDF via this secure link (click to access the link)

If you have technical issues uploading your complete application packet, contact Aneka.Harrell@sfgov.org

Important Dates

DK DALP Information Sessions:

Tuesday, May 17, 2022 @6pm

Thursday, May 19, 2022 @12pm

Saturday, May 21, 2022 @10am

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 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