The Golden Opportunities down payment assistance program is a new homebuyer assistance program offered by the GSFA to help low-to-moderate income homebuyers in California purchase a home with little-to-no money out of pocket when using FHA, VA, or USDA financing.
The Golden Opportunities buyer program provides up to 5% assistance of the loan amount which can be applied towards the down payment or to pay closing costs when buying a primary residence. Applicants DO NOT have to be first time homebuyers, only need a credit score of 620 to be eligible, and has no income limits!
Since 1993, the GSFA (Golden State Finance Authority) has been developing and administering homeownership assistance programs the provide affordable housing, stronger communities, and strengthens the economic well being of California residents. The GSFA is a duly constituted public entity and agency.
Golden Opportunities Eligibility Criteria
- DO NOT have to be first time homebuyer and may have ownership of other property at the time of closing
- Minimum Credit Score
- FHA/VA – 620 score
- USDA – 640
- Max Debt-to-Income Ratio
- up to 55%
- Fico’s 620-659 over 45% DTI subject to a 50 bps LLPA fee
- USDA follows their 29/41% DTI limits
- Max County Loan Limit HERE
- Property Types
- SFR / Condo / PUD
- Primary Owner Occupied
- 1 Unit only
- Manufactured homes subject to a 50 bps LLPA fee
- Income Limit
- No income limit for the FHA and VA
- USDA follows their county income limits
Terms and Repayment of the Assistance Loan
The assistance provided is in the form of a 15 year fixed fully amortizing loan, based on 3.5% of the first mortgage loan amount with an optional forgivable gift up to 1.5% that does not have to be repaid. The interest rate of the assistance 2nd loan will be the same as the note rate on the 1st loan. No subordination is allowed and it must be repaid back if or when borrower refinances or sells the home.
Which Down Payment Assistance Program is Best?
How can you possibly determine which down payment assistance program is the best program for your situation? Are you aware that there are still assistance programs int he form of a grant that are 100% fully forgivable and never have to be repaid back?
You would be shocked at how many many potential home buyers inquire about assistance programs at other banks and their loan officer tells them they are not eligible for any assistance program (steering), when in fact they do! How do I know this happens? Because numerous people call me every week asking about an assistance program and they share that with me.
Be an Informed Homebuyer
Take the time to learn what all your options are from a 20 year veteran independent mortgage broker like myself who specializes in the numerous homebuyer assistance programs in California and contact me to find out which one will benefit you the most.
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