Down Payment Assistance
You have the required 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 deliver loan solutions through CalHFA and GSFA, the two main California agencies that offer down payment assistance. CalHFA and GSFA 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. We have extensive experience and know-how in this area so reach out and we’ll be happy to educate you and present these options.
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, such as the My Home Assistance program which is equal to 3.5% of the purchase price, and the ZIP (Zero Interest Program) which is equal to 2% or 3% of the first mortgage loan amount. All DPA options are allowed in tandem with FHA, Conforming, USDA or VA first mortgage financing.
Qualifying for CalHFA Down Payment Assistance
- Must be a first-time home buyer
- 640 credit score
- Debt ratios as high as 45% allowed
- Flexible income limits
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 unique down payment assistance programs, 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 from gifts up to 3.5% of the loan amount, to grants up to 5% of the first mortgage loan amount, to 0% forgivable second mortgage liens up to 5% of the first mortgage loan amount and 0% second mortgage liens up to 3.5% of the first mortgage loan amount.
Qualifying for GSFA Down Payment Assistance
- You do not have to be a first-time home buyer
- 640 credit score; in some instances, 600
- Flexible debt ratio maximums
- Flexible income limits
GSFA down payment assistance in the form of a grant for 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.