S.F. homebuyer program low on dough

SAN FRANCISCO -- The Mayor's Office of Housing has joined the banks in tightening its purse strings, or putting its plastic in the freezer, as it were. As a result, potential homebuyers who would otherwise be eligible for the city's loan program are getting frozen out.

The downpayment assistance loan program, which offers loans for first-time homebuyers who are within a certain range of the city's median income, is "running low" on funds -- and is "therefore restricting limited funds to stabilize those communities with the greatest need."

One prospective buyer was caught off guard recently: "My husband and I were in contract for 26 days when we were floored by the Mayor's Office of Housing's announcement that it will no longer be offering downpayment assistance to individuals who make between 100 and 120 percent of area median income. We had to back out of our contract and are no longer going to be able to afford a home in San Francisco."

Reposted with permission from Curbed.com. Click here to view original post.

Copyright (c) 2009 Curbed.com LLC

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