Down Payment Assistance
You have the required 640 credit score, make enough money and are ready to be a home owner but you have not been able to save enough money to get it done. You are not alone. We offer loan solutions with the two main California agencies that offer down payment assistance, CalHFA and GSFA, and they have many options for buyers needing a little help with the cash required to purchase a home. Below are some details about CalHFA and GSFA. Reach out to us and we’ll show you what a down payment assistance transaction looks like.
CalHFA (California Housing Finance Agency)
Headquartered in Sacramento, CalHFA was chartered in 1975 as the state’s affordable housing lender. CalHFA offers a variety of down payment assistance (DPA) options ranging from 3.5% of the purchase price to an additional 3% of the loan amount. All DPA options are allowed in tandem with FHA, Conforming or VA first mortgage financing.
Qualifying for CalHFAdown payment assistance
- Must be a first-time home buyer
- 640 credit score
- Debt ratios cannot exceed 45%.
- Max annual income cannot exceed the county maximum set by CalHFA, currently $165,500 for Sacramento, Placer, and El Dorado counties.
GSFA (Golden State Finance Authority)
Also located in Sacramento, GSFA was established in 1993 for the benefit of California home owners by way of their down payment assistance, forgivable assistance and grant programs. Like CalHFA, GSFA offers a variety of down payment assistance structures to go along with FHA, Conforming or VA first mortgage financing. The down payment assistance options range from2.5% to 5% of the loan amount is available as a 0% interest rate and are forgivable after three years.
Qualifying for GSFA down payment assistance
- You do not have to be a first-time home buyer.
- 640 credit score; in some instances, 660.
- Debt ratios cannot exceed 45%
- Borrowers’ annual income cannot exceed the county maximum set by GSFA. For Sacramento, Placer, and El Dorado counties the maximum annual income limits are $160,200 for FHA, VA and USDA programs and $92,115 for Conforming financing.
GSFA down payment assistance options are given as a grant for all law enforcement officers, emergency fire/medic responders including administrative staff in support of firefighters, members of the CalSTRS or UCRP, employees of accredited private, charter or public school districts or California State University, Junior College or Private College including school administration and staff.