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GSFA Homebuyer Assistance - Win Win for Realtor and Homebuyer

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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. 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.

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GSFA Homebuyer Assistance - Win Win for Realtor and Homebuyer

  1. 1. GSFA Homebuyer Assistance ProgramsGSFA Homebuyer Assistance Programs Copyright 2019© | 3005RE2 - Realtor PresentationCopyright 2019© | 3005RE2 - Realtor Presentation What Could Your Buyer Do With $20,000$20,000? Golden State Finance Authority (GSFA) Homebuyer Assistance Programs Be Your Client’s Link to Down Payment Assistance 07/01/2019
  2. 2. Golden State Finance Authority (GSFA)  Supporting affordable homeownership for 26+ 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 07/01/2019wwww.gsfahome.org | (855) 740-8422 2
  3. 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." 07/01/2019wwww.gsfahome.org | (855) 740-8422 3
  4. 4. GSFA Homebuyer Assistance Programs Highlights only; Full program guidelines provided by GSFA and Participating Lenders 07/01/2019wwww.gsfahome.org | (855) 740-8422 4
  5. 5. Win-Win for Homebuyer and You  Financial Assistance:  DPA up to 7.0% available  Flexibility:  Don’t have to be a first-time homebuyer  FICO scores as low as 600  Flexible DTI limits • Max DTI follows AUS Approval  Variety of Mortgage Loan Types  Available throughout California  Generous income limits (low-to-moderate income)  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 07/01/2019wwww.gsfahome.org | (855) 740-8422 5
  6. 6. General First Mortgage Guidelines  Primary Residences in California Only  Eligible Mortgages (30-Year Fixed Rate)  FHA, VA, and USDA  Conventional Freddie Mac HFA Advantage  Loan Limits $484,350  Min FICO = 600  Max DTI = based on AUS approval  NO First-time Homebuyer requirement!  Low-to-moderate Income  For GSFA OpenDoors Program, there are no income limits for an FHA loan. 07/01/2019wwww.gsfahome.org | (855) 740-8422 6
  7. 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 07/01/2019wwww.gsfahome.org | (855) 740-8422 7
  8. 8. Income Limits (Varies by Program/Loan Type)  Based on First Mortgage Loan type  Based on Qualifying Income Only  Lookup on GSFA website www.gsfahome.org.  Examples below: GSFA OpenDoors™ Program County Conventional Loans Govt Loans Shasta County $70,610 No GSFA income limit; (Follow agency guidelines) Butte County $69,575 Kern County $67,505 Los Angeles County $79,695 Riverside County $75,670 Orange County $79,695 San Bernardino County $75,670 San Diego County $94,070 GSFA Platinum® Program County Conventional Loans Govt Loans Shasta County $70,610 $124,000 Butte County $69,575 $124,000 Kern County $67,505 $124,000 Los Angeles County $79,695 $138,600 Riverside County $75,670 $163,600 Orange County $79,695 $185,400 San Bernardino County $75,670 $131,600 San Diego County $94,070 $163,600 07/01/2019wwww.gsfahome.org | (855) 740-8422 8
  9. 9. Let’s Look at a Borrower’s End Result EXAMPLES 30-year fixed- rate GSFA OpenDoors Mortgages. Purchase Price $300,000. 1 For example purposes only; Interest Rate published 07/15/19, subject to change. 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 Standard FHA Loan (NO DPA) 96.5% LTV1 GSFA OpenDoors FHA 96.5% LTV (3.5% DPA)1 GSFA OpenDoors Freddie Mac HFA Advantage 97% LTV (7.0% DPA)1 First Loan Interest Rate 3.990% 4.000% 5.625% Purchase Price $300,000 $300,000 $300,000 Down Payment Required 3.50% ($10,500) 3.50% ($10,500) 3.00% ($9,000) Total First Loan $294,5672 $294,5672 $291,000 Second Mortgage DPA n/a $5,892 (2.0%) $10,185 (3.5%) Gift DPA n/a $4,418 (1.5%) $10,185 (3.5%) Total OpenDoors DPA n/a $10,310 (3.5%) $20,370 (7.0%) Monthly P & I (First Loan) $1,405 $1,406 $1,675 Monthly MI $209 (0.85%) $209 (0.85%) $116 (0.48%)3 Monthly P & I (DPA) $0 $0 $0 Total Monthly Payment $1,614 $1,615 $1,791 Borrower Out-of-Pocket for Down Payment $10,500 $190 $0 Remaining DPA for Closing Costs $0 $0 $11,370 07/01/2019wwww.gsfahome.org | (855) 740-8422 9
  10. 10. Additional Financial Assistance  GSFA Platinum – Paid MI Options  GSFA pays MI on behalf of Borrower  Coupled with DPA up to 2.5%  GSFA Affordable Subsidy  Additional Subsidy on Freddie Mac Conventional Loans  Up to $2,500 for Borrowers < 80% AMI  GSFA MCC Program –  20% Tax Credit for First-time Homebuyers  Borrowers <120% AMI 07/01/2019wwww.gsfahome.org | (855) 740-8422 10
  11. 11. Expectations AND timeline No additional compliance review by GSFA. Lender closes escrow on Lender’s timeline.  FICO  DTI  Income Limit  Occupation of Homebuyer  GSFA Participating Lenders lock/reserve funds  150+ Lenders (See GSFA Website) 07/01/2019wwww.gsfahome.org | (855) 740-8422 11
  12. 12. 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™ 07/01/2019wwww.gsfahome.org | (855) 740-8422 12
  13. 13. Realtor Best Practices  Link with 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 07/01/2019wwww.gsfahome.org | (855) 740-8422 13
  14. 14. 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. 07/01/2019wwww.gsfahome.org | (855) 740-8422 14
  15. 15. 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© 2019 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 07/01/2019 wwww.gsfahome.org | (855) 740-8422 15

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