CITY AND COUNTY OF SAN FRANCISCO MAYOR'S OFFICE OF HOUSING DOWNPAYMENT ASSISTANCE LOAN PROGRAM (DALP)

INTRODUCTION
In 1996, the voters of San Francisco approved issuance of general obligation bonds to create housing for its low and moderate-income citizens. A total of $15 million will be made available for downpayment assistance to eligible low and moderate-income a First Time Homebuyers. This funding will be issued in five increments of $3 million per year. Each annual issuance will assist from 60 to 100 First Time Homebuyers to purchase single-family homes in San Francisco.

BORROWER ELIGIBILITY REQUIREMENTS
The following criteria must be met for an applicant to be eligible for funding under the requirements of the DALP:
Income and Asset Requirements:
The Borrower's annual household income cannot exceed 100% of the median for the SFMSA as published by the U.S. Department of Housing and Urban Development (HUD), adjusted for household size. A Borrower may be eligible for the DALP if the largest mortgage for which the Borrower can qualify plus the Borrower's downpayment from all Available Assets is less than the Purchase Price of the property. Available Assets include all monies, investments and properties held by any member of the Borrower's Household in excess of $25,000. They however do not include funds held in pension accounts, retirement funds, 401(k) plans, trust funds, or similar assets which are not available for liquidation without substantial financial penalty to the Borrower. Personal property such as household furnishings, tools of trade or employment, or automobiles are NOT considered Available Assets. Evidence that Available Assets have been transferred to another individual or into an unavailable asset account to avoid use in the purchase will result in disapproval of the Borrower's application.
Gross Income Includes: All sources of income from which the Borrower(s), and any other person over 18 years of age who is expected to live in the residence. First Time Home Buyer Requirements:
The DALP funding is available only to those Borrowers who have NEVER owned a home as their Principal Residence. This includes homes in any geographic location and not limited to property in the City and County of San Francisco. The following evidence is required to determine First Time Homebuyer status and must be included which each loan submission file: a. True, correct and complete signed copies of the Borrower's federal income tax returns as filed with the IRS (or IRS printouts of complete tax returns) for the immediate three years, or b. An Income Tax Affidavit (DALP-3) that the Borrower has not been required to file a federal income tax return during one or all of the preceding three years because the Borrower's gross income was less than the minimum required for filing federal income tax returns.
Minimum Downpayment Requirement:
A Borrower must contribute a minimum of five percent (5%) of the Purchase Price toward the downpayment of the property. At least three percent (3%) must be the Borrower's own funds from a verifiable source. The balance may be in the form of a grant, gift, or unsecured loan.
Primary Financing:
Borrowers apply for DALP funding must be able to qualify for first mortgage from a Participating Lender for the purchase of a property located in the City and County of San Francisco prior to submitting an application for a downpayment assistance loan. Borrowers must have sufficient funds to meet the required down payment, closing costs, and necessary reserves and sufficient income to meet the monthly mortgage payments. Maximum Loan-to-Value Requirements: Maximum Loan-to-Value Ratio (LTV) cannot exceed 95% of the purchase price, which include the first mortgage and DALP.
Homebuyer Education Requirements:
All Borrowers must have documented evidence of completing a Homebuyer Education Program sponsored by a HUD approved private lending institution, nonprofit organization or other loan counseling services.
Owner - Occupancy Requirement:
All Borrowers must meet the following residency requirements throughout the life of the loan in order to comply with the terms of the DALP loan: a. The Borrower must occupy the purchased property as their Principal Residence within 60 days after the close of escrow and continuously thereafter, for the term of the loan or until the property is sold. b. The applicant must expect to occupy the purchase property as their Principal Residence substantially all of each year. c. Properties eligible to receive DALP funding must remain owner-occupied throughout the term of the loan. Compliance monitoring may be performed and documented proof of occupancy required at intervals determined by MOH. d. A temporary rental of a property may be allowed under special circumstances. Approval of temporary rental of the property is at the sole discretion of the Director and may not exceed one year. Upon discovery that the property is rented out by the Borrower without the prior written approval from MOH, the DALP loan is immediately due and payable. Household Size Compatibility:
At the time of application, the Borrower's Household must be compatible with the property size.
Title Transfer Restriction:
Changes in the title is not permitted. However, deletion of a Borrower or co Borrower from title may be allowed in cases of death or divorce.

PROPERTY ELIGIBILITY REQUIREMENTS.
All properties purchased with downpayment assistance loan funds must be Single-Family Residences in the City and County of San Francisco.
Properties containing Rental Units and "In -Law" units in addition to the dwelling units to be occupied by the Borrower's Household are not eligible for DALP funding.

LOAN TERMS
A maximum loan amount can be up to $100,000 or 30% of the Purchase Price whichever is less. Qualifying loan amounts are based upon a graduated scale depending on income levels, adjusted by household size, not to exceed 100% median income. The maximum loan amounts effective October 18, 2004 based on varying income levels are further explained in the following chart. At no time shall the DALP funds exceed 30% of the total Purchase Price.

Effective February, 2004, new income limits as follows: Household Under 76% to 81% to 86% to 91% to 96% to Income 75% 80% 85% 90% 95% 100% 1 Person Less Than $49,876 to $53,201 to $56,526 to $59,851 to $63,175 to $49,875 $53,200 $56,525 $59,850 $63,175 $66,500 2 Persons Less Than $57,001 to $60,801 to $64,601 to $68,401 to $72,201 to $57,000 $60,800 $64,600 $68,400 $72,200 $76,000 3 Persons Less Than $64,126 to $68,401 to $72,676 to $76,951 to $81,226 to $64,125 $68,400 $72,675 $76,950 $81,225 $85,500 4 or more Less Than $71,251 to $76,001 to $80,751 to $85,501 to $90,251 to Persons $71,250 $76,000 $80,750 $85,500 $90,250 $95,000 DALP Loan UP TO* UP TO* UP TO* UP TO* UP TO* UP TO* $100,000 $90,000 $80,000 $70,000 $60,000 $50,000

Prepayment Penalty:
There is no prepayment penalty associated with payment of these loans prior to the due date (sale or rental). However, prepayment must be in full; the loan cannot be partially repaid.