Disbursement

Participating members may request Middle-Income Downpayment Assistance funds for eligible homebuyers once a homebuyer opens escrow on a home purchase with a scheduled loan closing within thirty (30) days. After reserving funds for a homebuyer in escrow, the member provides the grant funds to the escrow company for the benefit of the homebuyer and then submits a request for reimbursement to the Bank within thirty (30) days of loan closing. Grant funds will only be disbursed after loan closing. The Bank will confirm receipt of the disbursement request within two business days and strives to process the requests within thirty (30) days of receiving a complete and satisfactory disbursement package.

Please watch a pre-recorded webinar or view our presentation slides with frequently asked questions to learn more about eligibility, disbursement, and program requirements. 

To reserve funds and request a disbursement, the member must first submit a Secure Portal Workspace Set-up Request form (the completed form is required once per program year). The member must then provide the following information by email to MDPA@fhlbsf.com to initiate the disbursement process:

• Homebuyer name

• Household income as % of area median income (AMI)

• Grant amount requested

• Scheduled loan closing date

• State where property will be purchased

The Bank will notify members by email that the homebuyer folder has been created in the workspace.

A complete disbursement package includes the following:

• Completed Middle-Income Downpayment Assistance Certification and Disbursement Request form, including the Certification and Disbursement Request Attachment 1.

  • Certification that the homebuyer is a first-time homebuyer, as defined by HUD.

  • Certification that the household and units funded satisfy Middle-Income Downpayment Assistance Program guidelines.

  • Certification that funds are being used for an eligible purpose and that the interest rate, points, fees, and other charges for all loans made in conjunction with the Middle-Income Downpayment Assistance direct subsidy shall not exceed a reasonable market rate of interest, points, fees, and any other charges for loans of similar maturity, terms, and risk. 

• Mortgage lender’s Fannie Mae Form 1008 (or equivalent), verifying that the homebuyer is income eligible.

• Certificate of completion of homebuyer counseling program by an experienced organization.

• Final Closing Disclosure.

If the disbursement package is incomplete or there are questions about the request, the Bank will email the member and clearly outline the deficiency. Any outstanding documentation for the submitted disbursement request must be received by the Bank within sixty (60) days from the date the Bank receives the disbursement request. If the member does not comply with these deadlines, the Bank reserves the right to decline the reimbursement of subsidy to the member.

Disbursement Eligibility

• Member must be in good standing with the Bank.

• The deadline to request a disbursement is October 31, 2025.

• The homebuyer must close escrow by October 1, 2025.

• Member may submit disbursement requests up to the maximum program limit of $1 million per member.

• Member may submit disbursement requests for households earning just over 80% up to 140% of AMI on a first-come, first-served basis until the $10 million program allocation has been reached.

For additional information or questions, refer to the MDPA Disbursement Flowchart or contact MDPA@fhlbsf.com.