A recent study by the Urban Institute and the Board of Governance of the Fed revealed that 50% of renters choose to rent over buying a home due to their inability to come up with their own down payment to buy a house. This is arguably understandable since when it comes to putting a down payment to buy a home, the general rule of thumb is to save up at least 20%. However, most people are not aware of the options available when one can’t afford to pay for a down payment. Have you heard of down payment assistance? If not, this piece is for you.
What is down payment assistance (DPA)?
Down payment assistance is a program or an initiative, run or sponsored by federal, state, local governments, and nonprofit organizations, meant to help homebuyers with grants or low-interest loans that reduce the amount needed for a down payment. With a down payment program, you do not need to stress about putting all your life savings as a down payment.
Interestingly, there are about 2,000 DPA programs available countrywide. However, choosing the best from this figure can be confusing. Also, it’s important to note that these programs vary by location. Different programs are located in different areas and come with different requirements or terms and conditions. But if you’re looking for the best DPA program around California, I highly recommend you to consider using the Golden State Finance Authority (GSFA) program.
What is Golden State Finance Authority (GSFA)?
GSFA is a public agency/entity providing affordable housing programs. As a public entity in California, GSFA has distinguished itself as a leader in affordable housing finance, where it has helped over 80,000 individuals and families purchase a home over the last two decades. Moreover, the entity has provided more than $859 million in down payment assistance and has participated in the financing of over $13.7 million in first and second mortgages.
GSFA has two affordable housing programs; the GSFA Platinum Program and the GSFA Open Doors Program, which are accompanied by down payment assistance up 7% of the mortgage loan amount.
“What that looks like is that on a $300,000 mortgage loan, 7% assistance is $21,000. So, by utilizing a program through GSFA, you’re getting a mortgage loan at a competitive interest rate, and then you’re being provided with $21,000 to put towards your down payment,” Carolyn Sunseri, the GSFA Marketing Director explains. “Most of the time, that’s going to cover all of what you need in down payment money, and possibly even give you some assurance towards your closing cost.”
What makes GSFA unique.
You might be wondering why I’m highly recommending GSFA programs to you. Well, there are many legit reasons, but the most important to note is their flexibility and accessibility. In most other programs, you do not qualify if you aren’t a first-time homebuyer. But at GSFA, you do not have to be a first-time homebuyer to qualify for a DPA, according to Carolyn.
“It could be someone returning to the housing market that owned a home in the past and want to purchase primary residence, or it could be somebody who’s first-timer buying a home, or maybe even leaving a home today and want to buy a home they’re going to be moving into as their primary residence,” she says.
Additionally, GSFA allows FICO score, which goes as low as 620, further demonstrating its flexibility and another reason why I highly recommend it. “I think this is very flexible and allows a lot of people who may have perfect credit to be able to qualify with a mortgage loan with mortgage fund assistance,” Carolyn adds.
Interestingly, GSFA also provides DPA on a four-unit property. This is a unique feature since there is no other program out there that offers this.
For more information about the GSFA programs, kindly visit neverrentagain.com, where you can register and talk to Carolyn Sunseri.
With such opportunities out there, there is no reason why you can’t own a home. Please don’t wait to regret it later; make the decision to own a home today.
The Power Is Now continues to keep you updated with the latest news in the real estate market as we strive for advocacy of homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have a team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in attaining your homeownership dreams. You can get in touch with the VIP Agents at https://thepowerisnow.com/vipagent/. If you can’t find an agent from your area, you can contact me directly for a referral. Also, ensure you stay updated with any developing real estate market news by regularly checking our blog page at https://thepowerisnow.com/blog/. You can also set up an appointment to speak directly to me at https://calendly.com/ericfrazier.
Eric Lawrence Frazier MBA
President and CEO
The Power Is Now Media Inc.