PRE-LOTTERY APPLICATIONS

Once you have obtained a Verification of Homebuyer Education and a mortgage pre-approval from a MOHCD approved lender, you will be able to apply for Below Market Rate (BMR) ownership lotteries, following the steps below: 

STEP 1: IDENTIFY A UNIT

Homebuyers can find and apply for available Below Market Rate (BMR) ownership opportunities on DAHLIA. You are encouraged to apply for multiple listings until you are in a purchase contract. Be sure to read all eligibility requirements for each listing before applying.  

STEP 2: PROOF OF INCOME

Gather and prepare to submit ALL income documents for all adult household members, including: paystubs, government benefits, pension or retirement, if applicable: business’s profit and loss statement for the current year.

STEP 3: PROOF FOR PREFERENCE

Lotteries have preference programs, and if you qualify for a certain preference, you can move up in line and get a higher ranking in the lottery. If you do qualify, you are required to include documentation with your application. Be sure to submit the appropriate documentation for the preference you are applying for, documents may include: utility bill, paystub (listing home address), public benefits record and school record.

STEP 4: SUBMIT APPLICATION VIA DAHLIA

Open the listing you wish to apply for and submit an application via DAHLIA. If needed, application assistance is offered by appointment at the same counseling agency where the First Time Homebuyer Education was taken. Please contact your housing counselor to request assistance:

• ASIAN, Inc.: 415-928-5910
• BALANCE: 800-777-7526
• San Francisco LGBT Community Center: 415-865-5632
• Mission Economic Development Agency (MEDA): 415-282-3334
• San Francisco Housing Development Corporation (SFHDC): 415-822-1022

POST LOTTERY & FIRST COME FIRST SERVED APPLICATIONS

A few weeks after the BMR lottery takes place, applicants will be contacted in order of lottery rank order until all units on the listing are filled. Applicants will be requested to submit a BMR Ownership Post Lottery/Supplemental Application with supporting documents within 5 business days.

There’s no lottery for the First Come First Served listings but you must submit a First Come First Served Application with supporting documents in order to be placed in line for review in order of submission.

Read carefully before submitting:

Be sure to read and follow the general instructions on the first page of the application. The list of Required Documents are also listed on the first page of the application. Be sure to gather and include every document on the list with your application.

Applications must be submitted in ONE .pdf file, including ALL supporting documents packaged IN THE ORDER LISTED ON THE APPLICATION. The divider pages are there to guide you and the corresponding documents must be behind each divider page. Applications received in multiple files, incorrect order, formats other than .pdf or without supporting documents will not be accepted or reviewed. For your convenience, see list of Required Documents below, as well as additional guidance.

1. Correct Application
   • Both BMR Ownership Post-Lottery and First Come First Served Applications can be found at: sfmohcd.org/homeownership-application.
2. Current Verification of First Time Homebuyer Education

• • It is your responsibility to make sure your Verification of Homebuyer Education is up to date. The Issue Date on your Verification of Homebuyer Education must be within the past year to be valid. If the Issue Date on your Verification of Homebuyer Education is close to reaching a one-year mark or has already passed, please connect with your counselor immediately to determine the next steps to renew the document. A valid Verification of Homebuyer Education will be needed for your counseling agency to issue a Certificate of Homebuyer Education once you are in a purchase contract. See Homebuyer Education Requirement and FAQs for more information.

3. Pre-approval letter from MOHCD approved lender

• • Pre-approval letter must be issued by one of the MOHCD Approved Lenders, dated within 120 days of the date of application

4. Photo ID

• • Copy of current photo identification for all adult household members

5. Tax Information

• • Last three years of Federal Income Tax Returns with all schedules for all family members. Be sure to submit signed and dated copies. Do not submit state tax returns.
    • If you don’t have a copy of your tax returns, contact your accountant or the tax filing software company you used to request a copy.
    • If you are still unable to obtain a copy, you can request it from the IRS for a fee. The process to receive copies from the IRS will take approximately 2 months and you will not be able to purchase without them; therefore, we recommend you request them now, if needed. To request copies from the IRS, you’ll need to complete and mail Form 4506 to the IRS address listed on the form. Please note you need an actual copy of your original tax returns, not transcripts.
  • Last three years of W-2 and/or 1099 form(s) that add up to income on tax returns, including the interest, dividends, capital gain/loss, other income and IRA distribution amounts. OR
  • If applicable, Income Tax Declaration form found on the application itself.

6.  Proof of Income for ALL jobs per page 4 of application

• • Three most recent paystubs OR
  • If applicable, Self-employed Declaration found on the application itself with:
    • Business Income Tax Returns for three most recent years.
    • Signed and dated Profit/Loss Statement to date from last tax filing.
    • If it is a new business, or you do not file income taxes:
      • Signed and dated Profit/Loss Statement for the current calendar year
      • Copies of all invoices and payments made to the borrower as a part of self-employment in the current calendar year OR
  • If applicable, Unemployed Declaration found on the application itself (For those receiving NO income and NO unemployment benefits) OR
  • If applicable, Employment offer letter if less than 3 weeks from date of hire

7. Three most recent Bank Statements for ALL accounts per page 5 of application. Bank statements must include all pages, including blanks.

8. Last Bank Statement for ALL asset and retirement accounts per page 6 of application. Bank statements must include all pages, including blanks. 

9. Lease Agreement

• • ALL pages of Lease Agreement
  • Three most recent receipts of rent payments OR
  • If rent free, provide a signed letter from landlord (can be parent)

10. Gift Funds

• • Completed gift letter
  • Evidence of donor availability of funds such as Bank Statement. Blocked or crossed out documents are not accepted.

**See sample application package here**

UNIT SELECTION & PARKING INFORMATION

Whether the listing you applied for had a lottery or was a First Come First Served opportunity: buyers will choose their unit based on availability and eligibility AFTER all required documentation is submitted and approved by MOHCD. Once a Conditional Approval to purchase is issued by MOHCD, buyers will be contacted by the sales agent to view available units in order to select one, as well as a parking spot, if available. A Purchase Contract is then completed by the sales agent or Realtor and signed by applicant/buyer and seller.

For information regarding the building, unit or amenities, please refer to the original listing or contact the listing agent.

ONCE YOU HAVE ENTERED A PURCHASE CONTRACT

 The purchase process will take additional 60 days, approximately.  Once in contract:

• Your lender will begin to process your mortgage loan. Be sure to remain in close communication with the lender and provide any document requested in a timely manner.
• Once a loan estimate is received from your lender, you will use the Request for Certificate of Homebuyer Education form to request the Certificate of Homebuyer Education from your housing counselor. The Certificate is REQUIRED to close and it will be issued at a Pre-Closing follow-up with your Housing Counselor.
• You will also have a Pre-Closing check-in with MOHCD to review program requirements and obtain final approval.
• Final Closing will be scheduled with the title company for final signatures. Plan to be physically present, Power of Attorney will be not allowed.
• Congratulations! You are now a homeowner!
  • Stay in touch with your Housing Counselor and Homeownership SF for support regarding any homeownership related topics, including but not limited to: Savings & Budgeting, Home Maintenance, Estate Planning, Refinancing and Foreclosure Prevention. We invite you to attend any of the workshops for homeowners.
  • Anyone utilizing any of the San Francisco homebuyer assistance programs will be required to attend 6 hours of homeowner workshops after the purchase of their property in order to obtain the homeowner rebate. Learn more at our Homeowner page.