It’s an opportune moment to purchase a below-market rate (BMR) condo, as competition is slim and inventory available.
The San Francisco Mayor’s Office of Housing and Community Development offers first-time home buyers a below-marke trate (BMR) condo program that spans a variety of neighborhoods. The benefit? Pay a mortgage instead of rent, and build a bit of equity.
The program has strict eligibility requirements, and typically involves a lottery for each available condo. However, the SF population exodus over the past year has narrowed down the BMR buyer pool. So there’s a number of “First Come, First Served” listings for which you can apply once approved.
I just helped my client purchase a 1BR/1BA condo with a balcony at 855 Folsom #330 for $384,387. Given that the average one-bedroom condo in Yerba Buena sells for $800,000, the BMR condo was a good way for him to get his foot in the homeownership door. Resale value is limited, but it’s possible to build some equity while also getting tax benefits—and not paying someone else’s mortgage. He had to meet income requirements, take the homeownership class and get preapproved for his mortgage prior to applying for a property.
The current First Come, First Served list of available units includes studios, one- and two bedrooms in Hayes Valley, SoMa, and the Financial District (including one in newly built Mira). There are also more than 20 BMR condos listed in the MLS located in Noe Valley, Hayes Valley, South Beach, Yerba Buena, Diamond Heights and Mission Bay.
One home that caught my eye is a new listing at 88 Townsend, one of my favorite South Beach buildings. #313 is a 736-square foot 1BR/1BA with parking for $405,390.
There are also loan assistance programs available for market-rate properties.
Feel free to give me a shout if you’d like to pursue a BMR unit.
[Photo courtesy of Compass.]