One of the biggest hurdles of homeownership is saving up for a down payment. But what if you could be gifted your down payment without ever having to pay it back? California’s Golden State Finance Authority (GSFA) created what they call their Platinum Program, which provides California homebuyers with down payment and/or closing cost assistance to help them achieve their goals of purchasing a home.
A non-repayable grant up to 5% of your total loan amount, this is a gift in the true sense, which means there are no terms for repayment. Available to use toward your down payment and even the closing costs, the program can help those that aren’t always able to build up the savings to put down the money for the home.
How does GSFA work?
- There is no interest, no payments, and no need to pay back the Down Payment Assistance (DPA) after 3 years. DPA is forgiven immediately for select occupations including First Responders, law enforcement, teachers, and more.
- There are no income limits for buyers and no minimal closing costs necessary.
- If you are a qualifying veteran, you can also take advantage of up to 0% down loan through VA to combine with DPA offered through GSFA.
- If you are renting, it’s a no-brainer to use GSFA and level up your living situation. The median net worth of a homeowner is $231,400, increasing 15% over 3 years. That’s 44X more than that of a renter!
What are the qualifications?
- The house you purchase must be your primary residence. This means that you will be living in it as soon as it is purchased so it cannot be used as an investment property. However, it doesn’t matter if you’re buying a home that already exists or if you’re planning on getting a house built.
- You must have a credit score of at least 640, and a maximum debt-to-income ratio of 50%.
- There is NO requirement that you be a first-time homebuyer.
- The largest loan amount you can get is dependent on the FHA limits of the loan that you are getting, which depends on the county that you are in.
