Dream Keeper Downpayment Assistance Loan Program (DK-DALP)

May 25, 2023


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.

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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
  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

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There is 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.

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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.

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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.

PeriodTime spanAction
Purchase Period
The pre-approval is good
for 90 calendar days. During
this period, borrowers must
enter into a sales contract.
90 calendar daysBuyer
DK-DALP Loan Submittal Period
Following the execution of a
sales contract, the Lender must
submit a complete DK-DALP loan
packet to MOHCD.
30 calendar daysLender
DK-DALP Review Period
MOHCD will review
the DK-DALP loan packet
15 business daysMOHCD
Loan Commitment Period
Upon loan approval, MOHCD
will issue a Commitment Letter
that is good for 30 calendar days.
30 calendar daysMOHCD
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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.

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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.

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Borrower eligibility

  • First-time homebuyers: All adult household members must not have any ownership interest in a residential unit for the last three years.
  • Completed homebuyer education from Homeownershipsf.org
  • 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 Downpayment: Borrower must contribute a minimum of 1% of the purchase price toward the down payment or closing costs. The entire 1% can come from gifts, if necessary.
  • Liquid Assets: Borrower must have no more than $60,000 after purchase.
  • 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.
  • Household Size: The size of a Household must be no greater than the total number of bedrooms in the Property plus one (1). In other words, a single person may purchase a two-bedroom property or a smaller property if they choose; a two-person household may purchase a three-bedroom property or a smaller property if they choose; and so on.
  • 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. An unborn child will be not counted as a household member. Elderly adult household members may be considered 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.
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Financing requirements

  • Primary Financing: Borrowers must be able to qualify for the first mortgage from an approved lender prior to submitting an application for 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 45% of the household’s gross income.
  • Front-End (Housing) Ratio: No less than 30% and no more than 43%. MOHCD may consider a maximum front-end ratio of up to 45% 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 45%.
  • 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.
  • Closing Costs: DK-DALP funds may be used to cover customary, non-recurring closing costs normally incurred in a residential real estate transaction, and subject to MOHCD's approval in its sole discretion.
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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.

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DALP Documents

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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.

Assurity Realty Corporation

Lakisha Hill
510-221-6203 or 510-992-9865

Berkshire Hathaway Home Services

Denise Parker

Berkshire Hathaway Home Services Drysdale Properties

Leslie Marie

Better Homes & Gardens, Reliance Partners

Janet Wilson

Jonisha Smith

Solomon Cooper

Bravo Brokerage

Anastasia Maxwell

Brivio Realty

Patricia Johnson

Rome Jones

Coldwell Banker Realty

Michael Wayne Jackson

Shanda Mayfield


Jeffrey Banks

Robert Belli

Steve Williams
510-872-2360 or 415-602-8912

Complex Living Real Estate

Michelle Thomas

Sharae Brown

Corcoran Icon Properties

Leilani Ishaan

Whitney Gregory

Dearman Realty

Jonathan Dearman

Molli Milner

Fast Agent

Rosa Moreno

Harper Real Estate

Martin Encinas Leon

Intero Real Estate Services

Amos Chris Wright

KAI Real Estate

Veronica Gray

Kees Realty

Denise Kees

Keller Williams Realty

Joel Borden

Shanita Fleming

Stephanie Christmas

KH Realty

PaPa Correa

Kinetic Real Estate

Montaiesha Hayes

Taja S. Conley

Pacific Edge Real Estate

Cynthia Pagán


Poncé Deleong Smith

RE/MAX Prestigious Properties

Marie Sturgell

Real Estate Revolution

Destiny Brown

Realty ONE Group Zoom

Ingrid Soluaga

The Real Estate Liaison

Chris J. Edwards

Twin Oaks Real Estate

Lorraine Dacanay Breaux

Vanguard Properties

Ryley Gaulocher

Vylla Homes

Katrina Major

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