GSFA Platinum® — Down Payment Assistance Program

Provides Down Payment and Closing Cost Assistance, up to 5.5% of the Mortgage Loan

What Can the GSFA Platinum Program Do for Homebuyers?


The GSFA Platinum Program helps low-to-moderate income homebuyers in California purchase a home by providing down payment and/or closing cost assistance (DPA).

The program is limited to owner occupied primary residences only. There is no first-time homebuyer requirment and the qualifying guidelines are flexible.

Program Highlights(1)

  • Financial assistance for down payment and/or closing costs (Now up to 5.5%).
  • Homebuyer doesn't have to be a first-time homebuyer to qualify.
  • Perfect credit not required. FICO scores as low as 640 can qualify.
  • Flexible income limits (low-to-moderate income).
  • Various first mortgage loan types available to fit the needs of the homebuyer
    (FHA, VA, USDA and Conventional financing)

How Much DPA is available?

The size of DPA available to you depends on the type of First Mortgage Loan you choose. For example, up to 5% in DPA is available in conjunction with a Conventional 30-year fixed-rate mortgage. Up to 5% in DPA is available for an FHA, VA or USDA 30-year fixed-rate mortgage through the GSFA Platinum Program.

To calculate the DPA in dollars, multiply the DPA percentage(1) by the First Mortgage Loan amount. So, 3% DPA on a $150,000 loan amount = $4,500 (150,000 x .03).


Loan Amount 3%-sized DPA 5%-sized DPA
$150,000 $4,500 $7,500
$200,000 $6,000 $10,000
$250,000 $7,500 $12,500

 


Does the DPA Have to be Paid Back?

Short Answer: Yes, at least a portion, if not all, of the assistance has repayment requirements. (Updated 6/20/22)

There are a variety of products within the GSFA Platinum Program. Each has different advantages and qualifying guidelines. For that reason, we encourage potential homebuyers to contact a GSFA Participating Lender to discuss your unique situation and needs. Our Lenders will provide you with complete program guidelines, interest rates, applicable APRs and discuss the down payment assistance options with you.

  • The Platinum standard product applies to the majority of homebuyers. It provides assistance, up to 5%, in the form of a 15-year fully amortizing Second Mortgage. The note rate on the Second Mortgage is 2.00% above the rate on the First Mortgage and has monthly payments.

  • For Platinum "Select" qualifying homebuyers, the assistance is provided in two forms. Up to 3.5% in assistance is provided in the form of a 15-year fully amortizing Second Mortgage Loan. The note rate on the Second Mortgage is 2.00% above the rate on the First Mortgage and has monthly payments. An additional 2% in assistance is available in the form of a Gift that never has to be repaid. FHA Energy Efficient mortgage loans, USDA guaranteed home loans, along with a variety of health care, public safety and education occupations can qualify the homebuyer for Platinum "Select".

  • For GSFA Member County "Assist-to-Own" qualifying homebuyers, 3.5% in assistance is in the form of a Deferred Second Mortgage. It has a 30-year term and a zero percent note rate. It accrues no interest, and has no monthly payments, but is due and payable upon sale, refinance or payoff of the First Mortgage. Additional DPA assistance, up to 2% is available in the form of a Gift that never has to be repaid. To be eligible for "Assist-to-Own", a homebuyer must be employed by one of the GSFA Member Counties.

 

(1) Certain restrictions apply on all programs. See a GSFA Platinum Participating Lender for complete program guidelines, current interest rates, loan applications, applicable fees and annual percentage rates (APRs.)

 

 

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