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."

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

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Will you attend ICLV virtually or in-person? The agenda is packed with stellar speakers and sessions.Learn More×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription