Low- and middle-income home buyers who enter a lottery this month could win up to $375,000 toward the purchase of a house or condo in San Francisco.
The deadline for entering the city’s Downpayment Loan Assistance Program is July 31, but entrants must first take a home buyer education workshop and get prequalified for a mortgage from a participating lender.
The down-payment assistance is a no-interest, 30-year loan that requires no monthly payments. It’s due when the owner sells, moves, transfers title or decides to repay it.
At that point, the owner pays the original loan amount and a proportionate share of any increase in the home’s value (determined by the sales price or an appraisal).
The city has $15.2 million available this year, which could fund at least 40 loans. Last year, it had about $10 million available and funded 26 loans, with four more pending. The program received about 200 applications, so the odds of winning were almost 7-1 — much better than other city housing programs.