Buying in Inner Sunset can feel out of reach when the down payment alone rivals a year’s salary. If you can afford the monthly payment but not the upfront cash, you are not alone. The good news is that San Francisco and California offer real programs that can bridge the gap. This guide shows you exactly how to use city and state down payment assistance to compete in Inner Sunset, what timelines to expect, and how to avoid common pitfalls. Let’s dive in.
Why use assistance in Inner Sunset
Inner Sunset is a highly desirable, mostly residential neighborhood near Golden Gate Park with strong transit access on the N Judah line. Prices often sit in the high six figures to multi million range, which makes down payments a hurdle for many buyers. City and state programs can reduce the cash you need at closing, as long as you meet eligibility and timing rules. Funding windows open and close, so planning ahead matters.
San Francisco DALP basics
What DALP provides
The Downpayment Assistance Loan Program, or DALP, is a silent second loan that requires no monthly payment. You repay it when you sell or transfer the home, including a pro rata share of appreciation. Maximum assistance can be up to $500,000, subject to available funds and program rules. Learn more on the city’s DALP page: San Francisco DALP overview.
Who qualifies
DALP generally requires first time homebuyer status, meaning no adult in your household owned a home in the past three years. You must complete approved homebuyer education and meet income limits set by Area Median Income tiers. MOHCD publishes the current chart each year. Review details and sample limits on the MOHCD income limits page.
DALP has separate funding pools for first responders and SFUSD educators, with their own preferences. All purchases must be inside San Francisco, which includes Inner Sunset. Full program rules and funding pools are on the DALP overview.
Application windows and lottery
MOHCD opens DALP applications during set windows, then holds a lottery to create a ranked list. For example, the 2025 window opened March 4 and closed June 2, with the lottery on June 25. If you are contacted based on your rank, you will have a short response deadline and must submit a complete file quickly. Key steps after the lottery are outlined here: What happens after the DALP lottery. Always check the DALP page for the next opening.
Timelines you must plan around
If you are pre approved and receive a DALP reservation, you have a 90 day purchase period to get into contract. Once you are in contract, your lender has 21 calendar days to submit the DALP loan packet to MOHCD. MOHCD targets a 15 business day review, then issues a commitment that typically allows about 30 days to close. These timelines are tight in Inner Sunset, so you should coordinate with your lender and agent before you write offers. See the city’s timing guidance on the DALP overview and post lottery steps.
Other MOHCD options
BMR DALP and City Second
If you are buying a Below Market Rate home, BMR DALP offers assistance with rules that fit BMR pricing and income limits. BMR homes have resale price restrictions and ongoing eligibility requirements. Get details on BMR DALP and the broader MOHCD homebuyer programs. The City Second Loan Program is another second mortgage option tied to certain listings and may be first come, first served.
Mortgage Credit Certificate status
The Mortgage Credit Certificate can reduce your federal tax liability by a percentage of your mortgage interest, which may help with qualification. As of December 2024, MOHCD indicated the MCC program was suspended until new funding becomes available. Always verify current status here: Mortgage Credit Certificate program.
State programs you can layer
CalHFA MyHome
CalHFA’s MyHome program offers a deferred junior loan, typically up to 3 to 3.5 percent of the first mortgage amount for down payment and closing costs. It requires homebuyer education and is available through CalHFA approved lenders. See the overview at CalHFA MyHome.
GSFA options
Golden State Finance Authority offers programs like OpenDoors, Golden Opportunities, and Platinum. Depending on the product, assistance may reach 5 to 7 percent of the first loan amount, with eligibility differences for repeat buyers and credit score requirements. Program structures vary by loan type and county membership. Explore current options at GSFA assistance programs.
How to compete in Inner Sunset
- Get pre approved with the right lender for your chosen program. DALP requires an MOHCD approved lender and you can only hold one DALP reservation per household.
- Finish your required homebuyer education before you shop. DALP requires a HomeownershipSF certificate.
- Prepare your documents so you can respond fast if MOHCD contacts you. See common items below.
- Align your offer timelines with DALP deadlines. Share your program and funding source with the listing agent so expectations are clear.
- Have your agent and lender coordinate the DALP packet immediately after you go into contract, since the lender’s 21 day clock starts right away. More on the sequence is in the city’s post lottery guidance.
Step by step checklist
- Confirm your eligibility and location. DALP is only for purchases in San Francisco, and Inner Sunset qualifies. Review basics on the DALP overview.
- Verify your household income against MOHCD’s AMI chart. Check the current income limits.
- Complete required homebuyer education. MOHCD lists approved providers on its program pages.
- Meet with an MOHCD approved lender or the appropriate CalHFA or GSFA lender. Confirm program compatibility if you plan to layer assistance.
- Watch for application windows. Enter the DALP lottery when it opens and track your status.
- If you receive a DALP reservation, line up showings quickly and be ready to sign once the right Inner Sunset home appears.
- Coordinate contract dates with your lender’s 21 day submission and MOHCD’s review timeline.
- Keep MOHCD’s contact handy for questions: [email protected].
Costs and tradeoffs to know
- Shared appreciation: DALP reduces your upfront cash but you repay principal plus a share of appreciation at sale. The share is based on the ratio of your DALP loan to the purchase price. Details are on the DALP overview.
- Program fees: MOHCD charges program fees at closing. For 2025 to 2026, the DALP program fee was $668. See the MOHCD program fees page.
- BMR restrictions: BMR homes limit resale price and require the next buyer to be eligible. Review BMR DALP guidance.
- MCC tax rules: If MCC becomes active again, know there can be a federal recapture tax if you sell within nine years and your income rises significantly. See the MCC program page and talk with a tax professional.
Common documents to prep
- Government photo ID for all adult household members
- Social Security numbers for adults
- Recent pay stubs, W 2s, and federal tax returns
- Bank and asset statements, including retirement accounts
- Gift letters and source of funds documentation, if applicable
- Homebuyer education completion certificate
- A pre approval letter from your program approved lender
Ready to get started?
If Inner Sunset is where you want to be, the right plan can make it possible. We can help you confirm eligibility, align timelines with DALP, and craft a sharp offer that respects seller expectations and city review. Reach out to David Juarez to map your next steps and start your search.
FAQs
Can I use DALP to buy in Inner Sunset?
- Yes. DALP funds can be used for market rate purchases anywhere in San Francisco, including Inner Sunset, if you meet eligibility and obtain a reservation through the lottery. See the DALP overview.
How much assistance can DALP provide in San Francisco?
- DALP can provide up to $500,000, depending on fund availability and your eligibility tier. Details are on the DALP overview.
What are the key DALP timelines once I am selected?
- Typical sequence: 90 days to sign a purchase contract after reservation, 21 days for the lender to submit the packet, about 15 business days for MOHCD review, then about 30 days to close after commitment. See post lottery steps.
Do I have to be a first time buyer to use DALP?
- For General DALP, yes. No adult household member can have owned a home in the last three years. Some state programs like GSFA may allow repeat buyers. Review DALP rules on the program page and state program pages.
Can I combine DALP with CalHFA or GSFA assistance?
- It depends. Each program has lender and compatibility rules, so confirm early with your MOHCD approved lender and review guidance on MOHCD homebuyer programs and CalHFA MyHome.
Are there extra fees or taxes I should expect with these programs?
- MOHCD charges program fees at closing and deferred loans affect your net proceeds at resale. If MCC becomes active again, there can be a potential federal recapture tax in certain cases. See program fees and MCC.
