MOHCD loan terms

What to do

All of MOHCD’s loans have the following terms unless stated in your loan documents:

For lenders

  • Occupancy requirement: The borrower must live at the home that received the loan as their primary residence, for the duration of the loan.
  • First mortgage requirements: The first mortgage loan must be a 30-year fixed-rate mortgage. The mortgage payment must be fully amortizing.
    • Loan Types not allowed: Reverse mortgage, stated income, ARM (adjustable-rate mortgage), interest-only, negative amortizing, balloon payments
  • Title changes: MOHCD must approve any changes to the home's title. See details about requesting a title change.
  • No Prepayment Penalty: There is no prepayment penalty associated with the payment of these loans prior to the due date. However, prepayment must be in full; the loan cannot be partially repaid. If there is a prepayment, the amount due and owing will be determined by an appraisal, at the homeowner's own cost, to determine the amount of appreciation.
  • Not Assumable/Transferable: City loans are not assumable or transferable.  The loan must be paid in full upon sale or title transfer of the property.
  • Payoff Requests: Borrowers must submit a written request for payoff. If the borrower wishes to have a third party submit a request for payoff on their behalf, they must submit a signed authorization allowing MOHCD to provide information to the third party. In addition, borrowers must submit at their own cost, a current fair market appraisal report dated within 90 days of the payoff request submission. See details about payoff requests.
  • Refinance/Subordination: The loan can be subordinated to the refinancing of the existing first mortgage for a lower interest rate and/or better loan term. See details about refinancing and subordination.
  • Home Equity Lines of Credit and Home Equity Loans: MOHCD does not allow borrowers to open Home Equity Line of Credit and Home Equity Loans. Borrowers who use such programs are in violation of their Program restrictions and will not be allowed by MOHCD to refinance their loans. The loan will be due and payable with the share of appreciation if the Borrower is deemed out of compliance with this policy and all other applicable program policies.
  • Closing appointment: The buyer must meet via virtual appointment with MOHCD staff within 5 business days of the request to consent and acknowledge the Commitment Letter and Affidavit.

Submitting applications

Lenders must send MOHCD loan application files through the DAHLIA San Francisco Housing Portal system. We will give you website and login information once you’ve completed MOHCD Lender training.

See more information on lender training.

  • Loan officers named in the loan application package should match the loan officers named on the Final Mortgage Loan Application (Form 1003).
  • Supporting documents for each loan application package must be an original PDF (no fax or jpeg).
  • Email to confirm your application was submitted.

This information applies only to transactions using MOHCD down payment assistance loans.  See Loan Funding and Wire Transfers 07-20-2023.pdf   for a list of title/escrow companies currently approved as a City vendor and certified in the City's financial system for outgoing wire transfers. It will take 5 business days to fund all loans after approving the closing documents. Lender agreements must be made to allow for this funding period.

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Last updated July 21, 2023