What is Down Payment Assistance?

• When buying a home, you typically pay a percentage of the home’s value upfront.
• Average down payment: ~6% of loan value (sometimes as low as 3% depending on loan type and credit score).
• Down Payment Assistance (DPA) programs provide grants or loans to cover some or all of this cost.

How to Get Down Payment Assistance

• Start with a pre‑approval to determine how much assistance you may need.
• General qualifications (vary by state/lender):
  • Credit score of 660+
  • First‑time homebuyer
  • Home must be your primary residence

CalHFA Down Payment Assistance

• Offers a subordinate loan with deferred payments (“silent second loan”).
• Funds can cover down payment, closing costs, or both.
• Repayment occurs when you sell, refinance, or finish paying off your mortgage.

Types of CalHFA Assistance:

• MyHome (FHA loans): Up to 3.5% of purchase price/appraised value.
• MyHome (Conventional loans): Up to 3%.
• Zero Interest Program (ZIP): For closing costs only.
• California Dream for All (coming soon): Shared appreciation loan to reach 20% down, reducing mortgage size and avoiding PMI.

Eligibility:

• First‑time homebuyer in California (exceptions apply).
• U.S. citizen, national, or qualified alien.
• Must occupy the property.
• Meet credit/income requirements.
• Complete a homebuyer education course.

GSFA Platinum Program

• Not limited to first‑time buyers.
• Provides up to 5.5% of the first mortgage loan amount for down payment and/or closing costs.
• Flexible credit (FICO as low as 640) and income limits.
• Eligible properties: 1–4 unit residences, condos, townhomes, manufactured homes.
• Works with FHA, VA, USDA, and Conventional loans.

Program Options:

• Platinum Standard: Up to 5% assistance via a 15‑year second mortgage (same interest rate as first mortgage).
• Platinum Select: For certain occupations/loan types. 3.5% second mortgage + up to 1.5% gift (no repayment).
• Assist‑to‑Own: For county employees. 3.5% deferred second mortgage (0% interest) + up to 2% gift.

Key Takeaway:

Down Payment Assistance programs like CalHFA and GSFA Platinum can significantly reduce upfront costs, making homeownership more accessible. Each program has unique eligibility requirements, loan structures, and repayment terms.