Down Payment Gifts for Public Employees

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Filed under: Market Comentary

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At Franklin Loan Center, we are always looking for the best solutions for our clients. There are many options available for down payment assistance, which often result in a $0 down option when you are preparing to buy a home. Sometimes, these solutions can even cover closing costs that need to be paid.

One of the programs that we often use is the Golden State Finance Authority (GSFA). They have a down payment assistance program that is a bit more aggressive compared to the other programs that we use. But, it’s like other programs since there are income limitations for the assistance. For example, in Riverside County, the income limitation is just over $131,000.

New Announcement from GSFA

GSFA announced this week that their down payment assistance will be a gift for many public servants in the state of California, including police, fire, border patrol, paramedics, teachers, and more. This gift is available for up to 5% of the home purchase. In many cases, the down payment is in the form of a second mortgage. But, this announcement doesn’t require more financing because the assistance is free money for people who qualify as public servants.

There are many moving parts to the program, so it’s always best to talk to me if you need personal recommendations. Typically, you will do a conventional FHA program, then GSFA covers the second financing that is needed for the down payment. Historically, this assistance has been in the form of a loan, but it is now offered as a gift for qualified employees.

This announcement is big news, and we want to help as many people as possible take advantage of the down payment funding that is available. You can take a look at the GFSA website to learn more about this announcement and see if you are qualified for this option when buying a home.

I’m already talking to a few people about the options, and I would love to help you out as well. If you know any public servants who are preparing to buy a home, then we invite you to send them our way. Please share this information with your family or friends so that they know about the options that are available.

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