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Police in the Community Program (PIC)

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The Police in the Community (PIC) Program is available through MOHCD Approved Participating Lenders Only

Click here for the Participating Lender List 



The Police in the Community Loan Program (PIC) provides downpayment assistance loans to police officers purchasing their first home in the City and County of San Francisco. Loan funds have been made available through contract negotiations between the City and the Police Officer’s Association.

Borrower Eligibility
Property Eligibility
Maximum Loan Amount
Loan Terms
Owner Occupancy Requirments
Application Process
Review and Processing
Loan Document and Application Forms
Participating Lenders
Homebuyer Education Counseling Agencies


To be eligible for a PIC loan, a borrower must be a full-time police officer in good standing currently employed by the San Francisco Police Department (SFPD). At the time of application, the borrower must provide a copy of the verification of employment as an officer in good standing with SFPD.

First-time homebuyer: Borrower must never have owned property in San Francisco, either as a primary residence. The PIC loan is for the purchase of the officer’s first property in the City and County of San Francisco. The property must serve as the officer’s principal residence (be owner-occupied).

Homebuyer Education Requirement: Borrowers are required to complete a first-time homebuyer education course through one of MOHCD's 5 approved housing counseling agencies. A certificate of completion of homebuyer education must be included with the application package. First-time homebuyer counseling is required for all City Down Payment Assistance Loans.

First Mortgage: All City loan approvals are made in conjunction with a first loan commitment from a bank or mortgage lender. This loan can be a fixed or adjustable interest rate loan. The mortgage payment should include principal and interest, as long as it does not have interest only, option ARM, balloon or negative amortization payment options.

Debt-to-Income Ratio: Applicant's monthly debt which including housing costs, plus all other household monthly debt (including credit cards, car payments, etc.) should not exceed 45% of the household’s gross income. However, the back end ratio cannot exceed more than 5% of the front end ratio. (For example, if the front end ratio is 28%, then the back end ratio cannot exceed 33%).  If you don't understand this DTI ratio, your lender will explain it to you.

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Properties purchased with PIC funds must be single-family residence units in the City and County of San Francisco. These include: detached single-family homes, condominiums and town houses.

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The loan amount available for PIC loans is $20,000.

Maximum Combined Loan-to-Value Requirements: Maximum Combined Loan-to-Value Ratio (CLTV) cannot exceed 100% of the purchase price, which includes the first mortgage, the PIC loan and any other borrowed subordinate financing.

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The loan may be used for either closing costs or downpayment. There is no interest or shared appreciation. PIC loans may be layered with DALP or City Second loans, and may also be used for the purchase of BMRs and Condo Conversion units, if the Borrower also meets the income eligibility criteria for those programs. If the Borrower moves out of the City and County of San Francisco or leaves the force of the SFPD within 5 years of the date the loan is issued, the loan must be paid back in full. After year five, the loan is forgiven in its entirety.

If the Borrower is rendered permanently disabled or killed in the line of duty, the loan will be forgiven immediately in its entirety regardless of the amount due at the time.

Refinance/Subordination: The PIC loan can be subordinated to refinance the existing first mortgage for a lower interest rate and better loan terms as long as no cash equity is taken out of the property. All refinances must meet the Mayor’s Office of Housing and Community Development‘s (MOHCD) subordination requirements and be approved by MOHCD. All borrowers must work with one of the loan officers on the list of participating lenders for refinance. This ensures awareness of full restrictions on the property and expedites the request process.

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A borrower must occupy the purchased property as its primary residence within 60 days after close of escrow.

Properties that have received City funding must remain owner-occupied throughout the term of the loan. Compliance monitoring will be performed and documented proof of occupancy required at intervals determined by the Mayor's Office of Housing and Community Development.

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Borrower must:

  • Complete the first-time homebuyer education course through one of MOHCD’s 5 approved housing counseling agencies. A certificate of completion of homebuyer education must be included with the application package.
  • Work with your Loan Officer/Lender to prepare the PIC application package, including the following:
    • Have a ratified purchase agreement before applying for the PIC loan.
    • Submit the PIC application to the lender at the same time you apply for your first mortgage along with the following documents:
      1. Provide verification of employment letter as an officer in good standing with SFPD
      2. Complete set of past 3 years Federal income tax returns (included all schedules, signed and dated) and W-2 forms
      3. Three current and consecutive pay stubs with year-to-date (YTD)
      4. Income Tax Affidavit (PIC-3) - if applicable
      5. First Time Homebuyer Affidavit (PIC-4)
      6. Homebuyer Education Certificate
      7. Last 3 months bank statement for checking, savings & other pertinent investment accounts
      8. Gift letter (if applicable)
      9. IRS form 4506
  • Have a ratified purchase agreement before applying for the PIC loan.

Lender must:

  • The following information will be submitted by the Lender with the PIC application package to City; the application package must be bound in a legal size manila folder with two fasteners:
    1. Transmittal Form
    2. Lender’s Certification (PIC-2)
    3. Primary Financing Loan Application (Form 1003) and
    4. Loan Analysis (Form1008)
    5. Final Approval or commitment letter from Lender
    6. A Copy of Good Faith Estimate (GFE)
    7. Ratified Sales Agreement (including all counter offers)
    8. A copy of borrower's Credit report
    9. Fair Market Appraisal
    10. Preliminary title report (including escrow deposit receipt, escrow officer's name and email address; and wire instructions)

PIC applications take approximately 10 working days to process, review and underwrite. Once the loan is approved, we will need another 7 working days to fund the loan. Any incomplete application package will be returned to the Borrower and no loans will be made until the application and materials are complete.

A letter of approval or denial will be sent to the Borrower and Lender within 5 working days of receipt of a complete package.

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  • MOHCD receives complete and bound PIC application package in a legal size manila folder with two fasteners (Application package follows instructions from Transmittal Form).
  • MOHCD will email approval or denial letter to the Lender within 10 working days of receipt of a complete package Incomplete packages will be returned without review.
  • Email notice includes draft loan documents and a request for buyer(s) to sign & date commitment letter, which must be returned to the City within 2 weeks.
  • After MOHCD receives the signed commitment letter back from the buyer:
    • MOHCD will email escrow instructions and closing documents to the title company.
    • After 7 working days funding period will begin.
  • Funding, as specified in the commitment letter, will be placed on reserve for a period of 45 days from date of the commitment. If for any reason, escrow cannot close within the commitment period, please notify the Mayor’s Office of Housing and Community Development immediately or the loan will expire.
  • Funding will be wired to the escrow account after MOH has received and reviewed all closing documents. We require 3 working days for wire a transfer.

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The City will provide closing documents to the title company for Borrowers’ signatures, closing documents will include:

  • PIC City Deed of Trust: The City Deed secures the loan against the title of the property. The City loan will subordinate to first mortgage.
  • PIC City Note: The City Note contains an acceleration clause, which will call the entire loan due and payable the sale; rental and title transfer of the property. The City Note also outlines terms of repayments.

PIC Loan Application Forms (revised 1/14)

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Last updated: 3/31/2014 12:29:15 PM