Understanding San Francisco's DALP Loan Assistance Program: A 2025 Guide

If you're a first-time homebuyer looking to own a home in San Francisco, the Downpayment Assistance Loan Program (DALP) might be the solution you've been searching for. Here's everything you need to know about this essential homeownership resource.

What is the DALP Program?

San Francisco’s DALP provides eligible homebuyers with up to $500,000 in down payment assistance. This comes as a silent second loan, meaning there are no monthly payments or interest charges. The loan is only repaid when the property is sold, refinanced, or transferred, at which point you repay the original loan plus a proportionate share of the home's appreciation.

Who is Eligible?

To qualify for DALP, applicants must:

• Be first-time homebuyers (no home ownership in the past three years).

• Have a household income no higher than 200% of the Area Median Income (approximately $256,200 for a four-person household in 2025).

• Complete a mandatory 10-hour first-time homebuyer education course.

• Contribute at least 1% of the home's purchase price towards down payment or closing costs (gift funds allowed).

Application Timeline for 2025

• Application Period: March 4 – June 2, 2025 (closing at 5:00 PM PT)

• Lottery Date: June 25, 2025 (11:00 AM PT)

• Results Posted: June 25, 2025 (5:00 PM PT)

Applications are processed in priority order for Educators, First Responders, and then General applicants.

Application Process

1. Homebuyer Education: Enroll and complete a 10-hour course from an approved provider.

2. Mortgage Pre-Approval: Secure a pre-approval from a Mayor’s Office of Housing and Community Development (MOHCD)-approved lender.

3. Submit Your Application: Apply during the open period.

4. Participate in Lottery: If selected, you’ll move forward with your home purchase.

Important Program Restrictions

• Owner Occupancy: The purchased home must be your primary residence and cannot be rented.

• Equity Restrictions: No home equity loans or lines of credit are allowed while the DALP loan is outstanding.

• Loan Reservation: You have 90 days after approval to enter into a home purchase contract.

How to Get Started

Ready to explore DALP and other homeownership options in San Francisco? The Legacy Real Estate team is here to help guide you through every step of the process.

Contact us today at LegacySFHomes.com to find out if you qualify or to begin your San Francisco home buying journey.

Sources:

• • San Francisco DALP Program Overview

  • Homeownership SF – Downpayment Assistance

  • DALP Info Session Q&A PDF

Looking Ahead to 2026

Whether you’re ready to apply or just beginning to explore your options, it’s never too early to start planning. The DALP program evolves yearly, so we encourage all prospective buyers to do their own research, attend an info session, and review current guidelines.

If you’d like personalized guidance or help preparing for the next round in 2026, reach out to the Legacy Real Estate team. We’re here to support you every step of the way.

FURTHER READING

Buying your first home in San Francisco is a big milestone—and a little extra local context can make your next steps much clearer. If you’re still mapping out financing, neighborhoods, or offer strategy, these Legacy Real Estate resources are helpful follow-ups:

• Winning offer strategy: https://legacysfhomes.com/blog/how-to-make-a-winning-offer

• SF DALP loan assistance (2025): https://legacysfhomes.com/blog/understanding-san-franciscos-dalp-loan-assistance-program-a-2025-guide

• Down payment assistance overview: https://legacysfhomes.com/blog/demystifying-san-franciscos-down-payment-assistance-programs-insights-from-the-legacy-real-estate-team

• BMR homes explained: https://legacysfhomes.com/blog/bmr

• After winning the BMR lottery: https://legacysfhomes.com/blog/bmr-housing-lottery

• SF buyer’s agent + process insights: https://legacysfhomes.com/blog/navigating-san-franciscos-real-estate-jungle

• SF district neighborhood guide: https://legacysfhomes.com/sf-district-guide

• Explore communities we serve: https://legacysfhomes.com/communities