4 ms·

Wait, there is really a way to get an interest free home loan to buy in SF? What are the criteria? Do the terms change if your employment status changes? This

Wait, there is really a way to get an interest free home loan to buy in SF? What are the criteria? Do the terms change if your employment status changes? This screams manipulation to me: Take a $59K job no matter what your qualifications. Get the home loan. Buy. Begin applying for better jobs. Even if you can't resell, a below market home and an interest free loan is incredibly valuable, and if it's in an area you don't want to live, just rent it (under the table if need be). Do you have a link to the details on this? I'm curious.

pdx6 12y ago
Yes. See: http://sf-moh.org/index.aspx?page=181 http://sf-moh.org/index.aspx?page=181 No, once you qualified and moved in your income can go up. You can only lease your property for up to 6 months through the MOH program and the rate is set by them. It must be your primary residence. Read the fine print. There is a mandatory class too.
salem 12y ago
Many below-market-rate places take a long time to sell because the salary restrictions make it difficult to get a loan, even with 10% down. The reality is that you need a large fraction in cash to afford these units. This might be the case if you're selling and moving within San Francisco, but not if you're a new low-income home buyer.
- pdx6 12y ago
  No, not exactly. The buyer will need to be credit worthy, with at least 5% down plus closing costs. Additional cash in the bank actually reduces the income qualification. The rub comes in after a buyer moves in and the HOA fees go up, or there is an assessment, but that is a risk for anyone who buys a condo. The number of applicants for below market rate, or BMR, far outstrips the number of available properties. If a buyer is diligent and timely with all the required MOH paperwork, they can beat other applicants since the washout rate is high. If you are interested, I suggest signing up to take the class, they are free.
duderific 12y ago
It's a lottery process, so there's no guarantee you'd get the below market home, even if you went through all the red tape.
- pdx6 12y ago
  The chances are higher than you would think. A lot of folks who took the class and apply for a unit fail to meet the application deadlines or fill out their paperwork wrong. Others win a unit that they don't want, and drop out so they can try in another building.
  - rdl 12y ago
    Seems like an easy scam to defer most of your compensation/take high equity at a startup, then do this. I assume the average 200k market rate tech employee remains more capable of successfully completing paperwork even when making 60k than most 60k earning people. Are there people doing this?

pdx6 12y ago

Yes. See: http://sf-moh.org/index.aspx?page=181 http://sf-moh.org/index.aspx?page=181 No, once you qualified and moved in your income can go up. You can only lease your property for up to 6 months through the MOH program and the rate is set by them. It must be your primary residence. Read the fine print. There is a mandatory class too.

salem 12y ago

Many below-market-rate places take a long time to sell because the salary restrictions make it difficult to get a loan, even with 10% down. The reality is that you need a large fraction in cash to afford these units. This might be the case if you're selling and moving within San Francisco, but not if you're a new low-income home buyer.

pdx6 12y ago
No, not exactly. The buyer will need to be credit worthy, with at least 5% down plus closing costs. Additional cash in the bank actually reduces the income qualification. The rub comes in after a buyer moves in and the HOA fees go up, or there is an assessment, but that is a risk for anyone who buys a condo. The number of applicants for below market rate, or BMR, far outstrips the number of available properties. If a buyer is diligent and timely with all the required MOH paperwork, they can beat other applicants since the washout rate is high. If you are interested, I suggest signing up to take the class, they are free.

duderific 12y ago

It's a lottery process, so there's no guarantee you'd get the below market home, even if you went through all the red tape.

pdx6 12y ago
The chances are higher than you would think. A lot of folks who took the class and apply for a unit fail to meet the application deadlines or fill out their paperwork wrong. Others win a unit that they don't want, and drop out so they can try in another building.
- rdl 12y ago
  Seems like an easy scam to defer most of your compensation/take high equity at a startup, then do this. I assume the average 200k market rate tech employee remains more capable of successfully completing paperwork even when making 60k than most 60k earning people. Are there people doing this?