FHLBank San Francisco Awards $10M in Middle-Income Down Payment Grants to 200 Homebuyers

If you earn too much to qualify for traditional first-time homebuyer programs but still can't save enough for a down payment in today's market, there's a program designed specifically for you. On August 25, 2025, the Federal Home Loan Bank of San Francisco announced it had awarded $10 million in Middle-Income Down Payment Assistance (MDPA) grants, helping 200 first-time homebuyers in Arizona, California, and Nevada close on homes they otherwise couldn't afford.

What the MDPA Program Offers

The MDPA program provides matching grants of up to $50,000 per eligible homebuyer. The structure is simple: contribute at least $10,000 of your own money toward your down payment and closing costs, and the program matches that contribution — up to the $50,000 cap — depending on your need and the purchase price.

That kind of assistance can be transformative. In high-cost markets like the San Francisco Bay Area, Phoenix, Reno, and Los Angeles, a $50,000 grant can be the difference between renting indefinitely and finally owning a home. It can cover the entire down payment on many FHA-financed purchases, or it can be stacked with savings to bring a conventional loan within reach.

Who Qualifies as 'Middle-Income'

This is where MDPA stands out from most down payment assistance programs. Traditional DPA is aimed at households earning at or below 80% of area median income (AMI). Middle-income families — teachers, nurses, first responders, small-business owners, tradespeople — routinely earn too much to qualify but nowhere near enough to compete in expensive housing markets.

MDPA is designed to fill that gap. To qualify, you must:

• Earn between 80.01% and 140% of AMI, adjusted for household size and property location
• Be a first-time homebuyer (typically defined as not owning a primary residence in the past three years)
• Purchase a home in Arizona, California, or Nevada
• Complete a HUD-approved homebuyer education or counseling course
• Work with a participating FHLBank member lender (55 banks and credit unions participated in 2025)

Because AMI varies widely, the income ceiling in the Bay Area is substantially higher than in rural Nevada — meaning households earning well into the six figures can still qualify in the highest-cost counties.

Why This Program Is So Competitive

The 2025 funding round illustrates just how much demand exists for middle-income assistance. The program launched in mid-March 2025 and reserved its entire $10 million allocation within roughly two weeks. Since the program's 2023 debut, FHLBank San Francisco has distributed $40 million and helped 818 families reach homeownership.

"For many families, these grants are the key to making homeownership a reality," said Joseph E. Amato, interim president and CEO of FHLBank San Francisco, noting the program's role in supporting essential community workers priced out of the markets they serve.

Because funds disappear fast, preparation matters. Borrowers who already have a participating lender, a completed homebuyer education certificate, and a pre-approval in hand are the ones most likely to secure a grant before the allocation is exhausted.

What Comes Next in 2026

FHLBank San Francisco has already expanded the program for 2026. On February 17, 2026, the bank's board approved $45.7 million in voluntary grant funding, including an $11 million renewal of MDPA — an increase of $1 million over 2025. That first $8 million round opened earlier this year and has already been fully reserved; a second round of $3 million is scheduled to launch later in 2026.

How to Position Yourself for a Grant

If you're a middle-income renter in Arizona, California, or Nevada, take three steps now:

1. Find a participating member lender. FHLBank San Francisco publishes the list of participating banks and credit unions on its website. Not every lender in the region is a member, so this step matters.
2. Complete homebuyer counseling. A HUD-approved course is required and typically takes 6 to 8 hours. Finishing early removes a common bottleneck.
3. Get pre-approved and save your $10,000 contribution. The matching requirement is non-negotiable, but funds can come from savings, a qualifying gift, or certain retirement account withdrawals.

Middle-income homebuyer assistance is one of the fastest-moving corners of the DPA world. If the 2025 and 2026 rounds are any indication, the 2026 second round will be gone within weeks of opening — so the time to prepare is now, not when the money drops.