What Can the GSFA Platinum Program Do For Homebuyers?
The GSFA Platinum Program was created to help low-to-moderate income homebuyers in California purchase a home by providing down payment and/or closing cost assistance (DPA), currently in the form of a forgivable Second Mortgage.
Since 2010, GSFA Platinum has helped 23,100 people to purchase homes, providing more than $531.7 million in down payment assistance.
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 4% in DPA is available for an FHA or VA Mortgage Loan and up to 3% in DPA in conjunction with a 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).
Down Payment Gift for Public Safety and Educational Occupations
GSFA Platinum borrowers with certain occupations are eligible to apply for a DPA Gift instead of a Second Mortgage. The DPA Gift never has to be repaid.
Qualifying occupations in CA include:
- Peace Officers, Sheriff, Border Patrol Agents, Correctional Officers and others serving in a Law Enforcement capacity;
- Firefighters, CalFire, paramedic, and Emergency Medical Technicians (EMTs), including administrative staff that supports firefighters; and
- Current members of the California State Teachers Retirement System (CalSTRS) or University of California Retirement Plan (UCRP), employees of a California accredited Private, Charter or Public School District or California State University, Junior College or Private College, including school administration and staff.
Features at a Glance(1)
- DPA in the form of a Second Loan, with no interest and forgiven after 3 years;
- No first-time homebuyer requirement;
- Minimum FICO 640 / Maximum DTI 50%;
- Generous Income Limits / higher than you might expect;
- FHA, VA, USDA and Conventional Mortgage Loans available; and
- Purchase and refinances of primary residences are eligible
The DPA Second Mortgage accrues no interest, has no monthly payments and is completely forgiven after three (3) years from the close of escrow. It can be used towards down payment and/or closing costs.
GSFA Platinum is designed to be flexible and is available for the purchase of both new and existing homes, as long as the home will be the primary residence of the homebuyer. The Program is also not limited to first-time homebuyers. Whether someone owned a home in the past or not, they can apply for the Program.
How Does a Homebuyer Qualify for the Program?
First, the homebuyer(s) must meet GSFA's specific qualifying guidelines for the Program which include the following(1):
- Intend to occupy the home as the primary residence;
- Qualifying income (total income used to qualify for the mortgage) must not exceed Program Income Limits;
- Meet the minimum credit score requirement of 640; and
- Not exceed the maximum debt-to-income ratio of 50%.
Second, the homebuyer(s) must apply for the Program through a GSFA Platinum Participating Lender and meet all the qualifying guidelines for the type of mortgage loan being used to finance the purchase of the home.
Conventional, FHA, VA, and USDA 30-year mortgages are allowed. Current interest rates and APRs are available through a Participating Lender.