September 21, 2014
SAN FRANCISCO (AP) - San Francisco is doubling to $200 thousand the amount it is willing to lend certain first-time home buyers toward the down payment on their first house or condominium.
The San Francisco Chronicle reported Sunday that Mayor Ed Lee's decision to increase the maximum amount for which residents can qualify is intended to help the city's middle class, who are hit hard by the housing crunch.
The new loan limit goes into effect this month.
When the borrower sells or refinances, the loan has to be paid off along with a percentage of the property's appreciation.
That money is then returned to the loan pool. The mayor's office says the fund has provided $14.7 million in loans since it was launched in 1998.
Some $12 million in loan repayments and appreciation have flowed back into the fund.
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