Have you heard about the Platinum Program by the Golden State Finance Authority (GSFA)? If not, this article will highlight everything the program does to help homebuyers. GSFA is a public entity that has been providing financial assistance programs to help California homebuyers and homeowners since 1993. Under the agency are several affordable housing programs, among them the Platinum Program. The program helps homebuyers buy a home by providing down payment and/or closing cost assistance in California. How does it do this?
How the Platinum Program works.
Let’s face it, saving tens of thousands of dollars to put as a down payment to buy a house is not an easy task. Studies have revealed that down payment is the biggest obstacle faced by homebuyers, especially in California. This is where the Platinum Program comes in. The program combines 30-year fixed-rate mortgages with financial assistance to cover down payment and/or closing costs. The program’s financial assistance goes a long way in giving home buyers more purchasing power and helping them acquire a home sooner than expected.
Benefits of the Platinum Program.
- Provides financial assistance for up to 5%.
According to Carolyn Sunseri, GSFA’s marketing director, the maximum amount of down payment assistance and/or closing cost provided by the program is 5%. “A homebuyer could qualify for $21,000 in down payment and closing cost assistance with a $300,000 mortgage loan; and $35,000 in assistance with a $500,000 mortgage loan,” Carolyn says.
However, the maximum amount of assistance provided depends on the type of loan, whether it’s a government-backed or a conventional loan.
On the other hand, the 5% maximum amount of DPA assistance does not include the Seller Assistance, which is allowed up to 6%. Now, this is the best part. This means that with the down payment assistance combined with the seller assistance, you possibly could have a no money deal. How fantastic!
- Extends beyond first-time homebuyers.
One distinctive feature of the Platinum Program is its flexibility to help both first-time and repeat homebuyers. According to Carolyn, you can be a homeowner and buy a new one through the program so long as you will be moving into it as your primary residence. This makes the GSFA Platinum Program very attractive and a lifetime opportunity to both homeowners and first-time homebuyers.
- Flexible income limits.
According to Carolyn, the Platinum Program features no income limit for government-insured loans such as FHA, USDA, and VA loans. However, there are limits for conventional loans, which vary depending on the different counties in California. You can check your limit here, depending on your county.
More interestingly, there are various first mortgage loan types available to fit the homebuyers’ needs, such as fixed-rate mortgages only, FHA, VA, USDA, and VA. Some of them, such as VA and USDA, do not require any down payment from the buyer from these mortgage loans. So by qualifying for the GSFA Platinum Program, the borrower can use the financial assistance to help cover the closing cost, according to Carolyn. Alternatively, they can apply it to the principal on the mortgage loan to reduce the loan amount, consequently lowering their monthly payments.
- Provides assistance on various property types.
Under the GSFA Platinum Property, various property types and units qualify to get financial assistance for down payment assistance. Some of the eligible properties include manufactured homes, condos, townhomes, single-family residential units, duplex units, and triplex units. Additionally, GSFA is the only program out there that provides DPA on a four-unit property, given that you’ll occupy one of them. Also, if it’s for investment purposes, the four-unit building must be occupied. You cannot find such an opportunity anywhere else in the US.
- The DPA is forgiven some times.
Under the GSFA Platinum Program, the assistance is provided as a zero percent Second Mortgage to many homebuyers. There’s no interest accrual, no monthly payments under the Second Mortgage, and it is completely forgiven after three years from the close of escrow.
Moreover, the GSFA Platinum Program provides assistance as a gift to some “select” qualifying homebuyers. “FHA Energy Efficient mortgage loans, USDA guaranteed home loans, along with a variety of public safety and education occupations, can qualify the homebuyer for DPA as a gift,” Carolyn says. Those who get assistance as a gift are the frontline responders and the medical and healthcare workers.
Folks, if a down payment has been blocking you from owning a home in California, GSFA is your solution. For more information about GSFA and what it does, go to www.neverrentagain.com to speak to Carolyn. To apply for down payment assistance under the GSFA program, kindly go to www.applytobuynow.com and get approved within 72 hours.
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Eric Lawrence Frazier MBA
President and CEO
The Power Is Now Media Inc.