SF Down Payment Assistance: MOHCD DALP, BMR and CalHFA

Most San Francisco households that assume they earn too much for help are wrong about DALP. In its recent cycles the city's Downpayment Assistance Loan Program has accepted households earning up to 200% of area median income, which under MOHCD's 2026 chart is about $259,400 for a two-person household, and it has lent up to $500,000 as a silent second with no monthly payment. The price is a share of your appreciation when you sell. BMR units and CalHFA's programs work differently and come with their own strings.

Who qualifies: AMI limits and the first-time buyer definition

MOHCD publishes new income limits each year, usually in the spring. The 2026 figures, as posted on MOHCD's chart:

Figures marked about are computed from the 100% row. The 2026 limits took effect June 1, 2026; confirm every row on the official chart, which MOHCD revises annually. Income means all sources for every household member 18 or older who will live in the home, generally the higher of projected income for the next 12 months or last year's gross, and MOHCD can impute income from liquid assets.

First-time buyer, for city programs, means no adult household member has held an ownership interest in residential property in the last three years. Every titleholder must also complete MOHCD's homebuyer education: an orientation, six hours of workshops and one-on-one counseling (about ten hours in all) through a MOHCD-approved counseling agency, with the verification valid for one year and required at the time you apply.

MOHCD DALP: how the deferred shared-appreciation loan works

DALP is a second loan from the city with these terms in its recent cycles:

• Up to $500,000, sized to your documented need rather than a flat grant.
• No monthly payments and no interest. The term is 30 years.
• Due in full when you sell, rent out or transfer the home, or at the end of the term.
• Repayment is the principal plus a share of appreciation equal to the loan's share of the purchase price. Appreciation is the sale price (or appraised value) minus the original price.
• You contribute a minimum of your own funds (1% of the purchase price under recent manuals), and the manual caps the liquid assets you may keep after closing; check the current figure.
• Household income up to 200% of AMI.
• The first mortgage must come from an MOHCD-approved lender, and the individual loan officer must also be approved.
• You must live in the home as your primary residence.

The math matters. On a $1,250,000 purchase with a $500,000 DALP loan, the city's share is 40%. Sell ten years later at $1,750,000 and you repay $500,000 plus 40% of the $500,000 gain, or $700,000. In a flat market DALP is nearly free money; in a rising market it is expensive.

DALP runs on an annual lottery; recent application windows opened in late winter or spring. A non-refundable program fee of several hundred dollars (see MOHCD's program fees page) is due after the lottery and income pre-approval. As of 2026-10-24, check sf.gov for the current cycle dates and manual, because terms shift year to year.

Below Market Rate (BMR) ownership: the lottery and what you give up

BMR units are deed-restricted condos created through the inclusionary housing program. Each unit is designated at an AMI level (commonly 80%, 90%, 100% or 120%), your household income cannot exceed that level, and you apply through the DAHLIA housing portal lottery.

What you accept in exchange for a below-market price:

• The resale price is set with MOHCD by formula, and MOHCD selects the next buyer by lottery from eligible first-time households.
• You must owner-occupy. Renting the unit out is not allowed.
• Refinancing requires an MOHCD-approved lender and MOHCD's approval each time.
• Title changes need MOHCD approval, and inheritance is limited to a spouse, domestic partner or child who meets eligibility and completes the transfer within the time the manual allows.
• Restrictions run for the life of the property. Credit for eligible capital improvements is limited: under the 2024 procedures manual, only improvements made at least ten years after the unit's first sale count, the work must be approved within six months of completion, and total credit is capped at 10% of the resale price.

A separate, smaller pot called BMR DALP helps BMR buyers with down payment, capped at a share of the price (MOHCD's program page has listed a 20% cap) with its own income limit; as of 2026-10-25, check current figures for both, since the cap and the income limit change with each cycle. HOA dues on BMR units are the same as market-rate units in the building, so a high-dues tower can erase much of the price advantage. Condo vs house vs TIC covers what to look for in the building.

CalHFA: MyHome, Dream For All and the approved-lender rule

CalHFA is the state agency. Its programs flow only through CalHFA-approved lenders, and the subordinate loans must sit behind a CalHFA first mortgage.

MyHome Assistance. A deferred-payment second loan with simple interest, repaid when you sell, refinance or pay off the first. It covers the lesser of $15,000 or 3% of the price or appraised value on conventional loans, 3.5% on FHA. School employees, fire department employees and borrowers at or below 80% of AMI are not subject to the $15,000 cap under the 2021 bulletin; confirm the current handbook. CalHFA income limits are set by county and updated each year. The 2025 table, effective June 9, 2025, put San Francisco and most neighboring Bay Area counties at roughly $315,000 to $325,000; as of 2026-10-25, check current figures on the San Francisco row of CalHFA's income limits page before you assume you are over.

Dream For All. A shared appreciation loan of up to 20% of the price, capped at $150,000, for first-time buyers where at least one borrower is also a first-generation homebuyer. Funds go by random voucher selection, not first come first served; the 2026 registration window ran February 24 to March 16, 2026, and has closed, with vouchers issued to selected applicants in May 2026. Repayment is the original loan plus a share of appreciation that matches the loan's share of the price (a 20% loan repays 20% of appreciation), reduced for lower-income borrowers under CalHFA's disclosure. Watch calhfa.ca.gov for the next round and its funding.

Educator, first-responder and employer programs

San Francisco funds two DALP variants with their own pools: Educators DALP for SFUSD educators and FRDALP for the city's first responders, each a silent-second, shared-appreciation loan toward a market-rate home with maximums that have matched general DALP in recent cycles. Eligibility rules differ from general DALP, so read the program page carefully. Tell your lender about any employer housing loan before underwriting.

Stacking programs with a first mortgage

Every program here is subordinate financing: your first-mortgage lender must accept a second (and sometimes third) lien and the combined loan-to-value, and each agency must approve the layering. An MOHCD-approved lender will pair DALP with a conforming or jumbo first; CalHFA requires its own first. Get the full stack in writing, including lien positions and what happens to each loan if you refinance.

The trade-offs

• Shared appreciation can cost far more than PMI in a rising market. Run the ten-year scenario above with realistic numbers.
• Resale caps on BMR units mean you build equity only through paydown, not appreciation.
• Owner-occupancy rules follow you. A job move out of the city can force a sale or repayment.
• Offer competitiveness. Program loans add a layer of approvals and time to escrow, and some sellers discount offers with city financing. In a market where single-family homes have routinely sold well over asking, that bites; it bites less on condos and on listings that sat. Use the comps tool to find buildings where the gap between list price and recent sales is small enough that your offer can compete on terms.

Timeline and paperwork

• Complete the orientation, workshops and counseling, and get your verification.
• Get a fully underwritten pre-approval from an MOHCD- or CalHFA-approved lender.
• Apply in the DALP lottery window, register for a Dream For All voucher window, or apply to BMR lotteries on DAHLIA as units list.
• If selected, complete income pre-approval, pay the fee, and shop within the program's commitment window.

What to shop for right now

• Program-approved mortgage lender (savings: medium). DALP and CalHFA require participating lenders, which shrinks your list. Still compare at least two approved lenders on the same day; their first-mortgage rates, Section A fees and turnaround differ as much as any other lenders'. The program terms are fixed; the first mortgage is not.