Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to figure out how to cover the down payment and closing costs. But don’t worry—there are programs designed to help make homeownership more accessible. One such program is the Golden State Finance Authority (GSFA) Assist-to-Own Program. Let’s break it down together.

Program Overview

Program Name: Golden State Finance Authority Assist-To-Own Program

Source of Funding: This program is sponsored by the Golden State Finance Authority, a California joint powers authority and public entity.

Eligibility Criteria

• Employment: You must be employed by one of the GSFA Member Counties.
• Property Location: The property must be in California and serve as your primary residence.
• Credit Score: A minimum FICO score of 640 is required.
• Income Limits: The program offers flexible income limits catering to low-to-moderate income individuals.

Benefits

• Financial Assistance: Receive up to 5.5% of the first mortgage loan amount to help with down payment and/or closing costs.
• Deferred Second Mortgage: 3.5% of the loan amount is provided as a deferred second mortgage with a 0% interest rate and no monthly payments. This amount is due upon sale or refinance of the property.
• Additional Gift Assistance: Up to 2% of the loan amount may be available as a gift, which does not need to be repaid.
• No First-Time Homebuyer Requirement: You don’t need to be a first-time homebuyer to qualify.
• Flexible Property Types: Eligible properties include single-family 1-4 unit residences, condominiums, townhomes, and manufactured homes.

Potential Drawbacks

• Repayment Upon Sale or Refinance: The deferred second mortgage must be repaid when you sell or refinance the property.
• Market-Dependent Gift Assistance: Availability of additional gift assistance is subject to market conditions.

Application Process

1. Verify Employment: Ensure you are employed by a GSFA Member County.
2. Contact a Participating Lender: Work with an approved GSFA lender to determine your eligibility.
3. Complete Pre-Approval: Submit the required documents and pre-qualify for the program.
4. Finalize Your Loan: Proceed with the home-buying process and finalize your mortgage loan.

Where is the Program Available?

This program is available to eligible individuals purchasing or refinancing a property anywhere in the state of California.

Learn More

For more information, visit the official Golden State Finance Authority website.