Golden State Finance Authority (GSFA) and U.S. Department of Agriculture (USDA) Rural Development have jointly implemented a financial gift product to more efficiently serve the needs of low-to-moderate income homebuyers in rural areas of California.
Beginning, September 17, 2018, individuals or families purchasing a primary residence with a USDA Rural Development loan guarantee through the GSFA Platinum Program will be eligible for down payment assistance and closing cost of up to four percent in the form of a non-repayable gift. The size of the gift is based on the amount of the mortgage loan.
“Many homebuyers across rural California struggle to afford decent, safe housing,” said USDA Rural Development California State Director Kim Dolbow Vann. “Working in partnership with GSFA we have another great tool to help support homeownership and improve rural prosperity.”
USDA’s loan guarantee program offers 100 percent financing and is available to low-to-moderate income homebuyers in rural areas, typically communities with populations of 35,000 or less. Coupled with the GSFA Platinum Program, qualifying homebuyers may be able to purchase a home with little to no money out of pocket.
Specific Instructions for Lenders:
Lenders must upload the GSFA Platinum Reservation Confirmation and DPA Funding Commitment Notice to USDA’s Guaranteed Underwriting System (GUS) to obtain a conditional commitment from USDA RD. Lenders should reference the GSFA Platinum FHA, VA and USDA Term Sheet, effective 9/17/18 for complete guidelines and requirements.