What would your clients do with $20,000 in down payment assistance? First-time OR repeat homebuyers can qualify, as long as they are purchasing a primary residence in California. Find out more about the GSFA homebuyer assistance programs and how they can help you boost your business and help California homebuyers achieve the dream.

1. GSFA Homebuyer Assistance Programs
Copyright 2019© | 3005RE2 - Realtor Presentation
What Could Your Buyer
Do With $20,000?
Golden State Finance Authority (GSFA) Homebuyer Assistance Programs
Be Your Client’s Link
to Down Payment
Assistance
08/03/2020

2. Golden State Finance Authority (GSFA)
 Supporting affordable
homeownership for 27 Years:
 Public entity and agency in
California organized in 1993
 Mission to provide a source of
financing for California
homebuyers
 Enhance standard mortgages:
 Down payment, closing cost
assistance (DPA)
 Mortgage Credit Certificates
(MCC)
 Standard underwriting:
 FHA, VA, USDA and Conventional
First Mortgages
 Ensure homebuyer has ability to
afford mortgage
 Any overlays are more
restrictive, not less
Over 78,400
homebuyers
helped
$569.7 million
in down payment
assistance provided
08/03/2020
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3. Common Down Payment Assistance MYTHS
 Only in certain areas
 Only for first-time homebuyers
 Only for low income homebuyers
 Only for those with zero savings
 Only for exceptional credit
 Accrues interest
 Only works with FHA
 Harder to qualify
 Takes longer to close
 Limited funding
* According to findings from the second annual America at Home survey
commissioned by NeighborWorks America." 08/03/2020
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4. GSFA Homebuyer Assistance Programs
Highlights only; Full program guidelines provided by GSFA and Participating Lenders
First
Mortgage
Loan
Assistance
from GSFA
Purchase
with little-to-
no money
out of pocket
08/03/2020
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5. Win-Win for Homebuyer and You
 Financial Assistance:
 DPA up to 7.0% available
 Flexibility:
 Doesn’t have to be a first-time
homebuyer
 FICO scores as low as 620
 Flexible DTI limits
 Variety of Mortgage Loan Types
 Flexible income limits
 Available throughout California
 More qualified buyers
= More home sales
 Does not slow down escrow
 No additional compliance review
from GSFA or Servicer
 Assistance funds from GSFA
don’t run out
 Once Lender locks in Mortgage Loan
and Assistance options, they close
the loan on their normal timeline
HOMEBUYERS LENDER / REALTOR
08/03/2020
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6. General First Mortgage Guidelines
 Purchase of Primary Residences in California
 Eligible Mortgages (30-Year Fixed Rate)
 FHA, VA, and USDA
 Conventional Freddie Mac HFA Advantage
 Loan Limit = $510,400
 Min FICO = 620
 Max DTI = based on AUS approval
 Flexible Income Limits
 Pricing better for borrowers ≤ 80% AMI
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7. Forms of the DPA (Varies by Program)
Total DPA available = 7%
 Primary DPA is in the form of a
0% Second Mortgage
 Up to 3.5% DPA available
 No interest accrual; no payments
 DPA Second is due and payable upon
sale or refinance
 Additional DPA as a Gift
 Up to 4% additional DPA available
 This portion is forgiven when
escrow closes
 Total DPA available = 5%
 DPA as a Gift for:
 FHA Energy Efficient Mortgage
 USDA Guaranteed Home Loan
 Public Safety Occupations:
• Law enforcement
• Fire Fighters and fire support staff
• Paramedics and Emergency Medical Technicians
• Teachers, school administration and staff
 DPA as 0% Second Mortgage for:
 All other First Mortgage Loans and
borrowers
 DPA Second is forgiven after 3 Years
GSFA OpenDoors™ Program GSFA Platinum® Program
08/03/2020
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8. Let’s Look at a Borrower’s End Result
EXAMPLES
GSFA OpenDoors
Program
30-year fixed-rate
mortgage.
Purchase Price
$300,000.
1 For example purposes only;
Rates are subject to change.
Interest Rates published
08/03/20.
2 Includes Up Front Mortgage
Insurance of 1.75% (required by
FHA)
3 MI based on FICO of 720 with
Charter level coverage on two
borrowers through MGIC.
Category GSFA OpenDoors
FHA 96.5% LTV (3.5% DPA)1
GSFA OpenDoors
Freddie Mac HFA Advantage
97% LTV (7.0% DPA)1
GSFA OpenDoors
Freddie Mac HFA Advantage
97% LTV (7.0% DPA)1
Borrower Income Range ≤ 80 AMI ≤ 80 AMI > 80 AMI
First Loan Interest Rate 2.75% 3.375% 4.00%
Purchase Price $300,000 $300,000 $300,000
Down Payment Required 3.50% ($10,500) 3.00% ($9,000) 3.00% ($9,000)
Total First Loan $294,5672 $291,000 $291,000
Gift DPA $5,892 (2.0%) $5,820 (2.0%) $5,820 (2.0%)
Second Mortgage DPA $5,892 (2.0%) $10,185 (3.5%) $10,185 (3.5%)
Total OpenDoors DPA $11,784 (4.0%) $16,005 (5.5%) $16,005 (5.5%)
Monthly P & I (First Loan) $1,203 $1,411 $1,390
Monthly MI $209 (0.85%) $116 (0.48%)3 $116 (0.48%)3
Monthly P & I (DPA) $0 $0 $0
Total Monthly Payment $1,412 $1,403 $1,506
Borrower Out-of-Pocket
for Down Payment
$0 $0 $0
Remaining DPA for Closing Costs $1,284 $7,005 $7,005
08/03/2020
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9. Additional Financial Assistance
 GSFA Platinum – Paid MI Options
 GSFA pays MI on behalf of Borrower
 Coupled with DPA up to 2.5%
 GSFA MCC Program –
 20% Tax Credit for First-time Homebuyers
 Borrowers < 120% AMI
08/03/2020
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10. Expectations AND timeline
Buyer Gets
Pre-Qualified
First Mortgage
and DPA
Reserved
(60-day rate lock)
Escrow Closes +
Loan Purchased
by Servicer
(within 60-days of
Lock)
 No additional
compliance review by
GSFA.
 Lender closes escrow
on Lender’s timeline.
 FICO
 DTI
 Income Range
 Note Occupation of
Homebuyer
 GSFA Participating
Lenders
lock/reserve funds
 150+ Lenders
(See GSFA
Website)
08/03/2020
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11. Remember these Common MYTHS regarding DPA?
Do these apply to GSFA OpenDoors™?
NO Only in certain areas
NO Only for first-time homebuyers
NO Only for low-income buyers
NO Only for those with zero savings
NO Only for exceptional credit
NO Accrues interest
NO Only works with FHA
NO Harder to qualify
NO Takes longer to close
NO Limited funding
GSFA OpenDoors™
08/03/2020
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12. Realtor Best Practices
 Link with a GSFA Approved Lender
 Lender helps determine best DPA options for homebuyer
 Listed on back of handout
 List on www.gsfahome.org
Note: If client is not currently working with a
GSFA Participating Lender?
 Approval and Training of Lender could delay process
 Best to refer to a current GSFA Approved Lender
08/03/2020
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13. Marketing Literature Templates
 Flyers and brochures
 Adobe PDF format
(download from our website)
 Program-specific
 English & Spanish
 Embedded “Text” fields
 Add info such as name,
company info, phone,
website, etc.
08/03/2020
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14. GSFA Client Relations Department
M-F 8:00 AM – 5:00 PM
This concludes today’s training event.
Thank you all for attending.
TOGETHER WE CAN MAKE A DIFFERENCE
Copyright© 2020 Golden State Finance Authority (GSFA). All rights reserved.
Presentation contains program highlights only. All guidelines are subject to change without notice.
Visit www.gsfahome.org for complete program guidelines.
The GSFA Platinum®, GSFA OpenDoors™ and GSFA MCC® Programs are sponsored by GSFA, a duly constituted
public entity and agency, and managed by National Homebuyers Fund, Inc., a non-profit public benefit
corporation and Instrumentality of Government under Internal Revenue Service code section 115.
3005RE2
08/03/2020
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