May 7, 2026 | Bulletin #26-10

Important Reminder – ReCoverCA Homebuyer Assistance Program Funding Process

GSFA would like to remind all ReCoverCA HBA Participating Lenders that the First Mortgage Loan may not be closed or funded until GSFA has issued the Phase 4 Final Compliance Commitment Letter for the ReCoverCA Homebuyer Assistance Program.

Upon issuance of the Phase 4 Final Compliance Commitment Letter, GSFA will initiate the Second Mortgage Down Payment Assistance (DPA) wire transfer directly to title. Participating Lenders are not permitted to fund the DPA portion of the transaction under the ReCoverCA Homebuyer Assistance Program.

This requirement is critical to ensure proper program compliance and funding procedures are followed.

Updated Program Documents

The following program documents have been updated in the Lender Participation Guide to include language clarifying that lenders may not fund the DPA:

DR-HBA_CONV_Loans_TermSheet_2017
DR-HBA_GOVT_Loans_TermSheet_2017
DR-HBA_CONV_Loans_TermSheet_2018_2020
DR-HBA_GOVT_Loans_TermSheet_2018_2020
DR-HBA_CONV_Loans_TermSheet_2023_2024
DR-HBA_GOVT_Loans_TermSheet_2023_2024
DR-HBA004-Checklist_Initial_Compliance
DR-HBA004-Checklist_Initial_Compliance-flood
DR-HBA011-Checklist-Underwriting_Compliance
DR-HBA011-Checklist-Underwriting_Compliance-flood
DR-HBA012-Checklist-Final_Compliance
DR-HBA012-Checklist-Final_Compliance-flood

Please ensure your teams are utilizing the updated documents immediately and are aware of this funding requirement prior to loan closing.

Additional Resources

This is not an offer for extension of credit nor a commitment to lend and is subject to change without notice. Complete program policies, eligibility requirements, loan applications, interest rates and annual percentage rates (APRs) are available through GSFA Participating Lenders.

For questions or additional assistance regarding this bulletin, please Contact Us.

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