Trying to get a home anywhere is a tricky process.
Of course, it gets a little more complicated when you’re trying to make sure that you can get the down payment ready.
When you’re looking at getting a house and are worried about the amount of money that you will have to pay up from for the loan, then you’ll want to take a look at the GSFA down payment assistance program.
If these reasons apply to you, then you might want to take a closer look at the program by looking through our main article on the subject or looking into the limits of the loan a little bit more closely.
Here's a quick rundown of our list:
- Reason 1 - You are Middle to Low Income
- Reason 2 - You Can’t Build Up Enough Savings for the Down Payment
- Reason 3 - You Live in or Want to Live in California
- Reason 4 - You’re Getting a Primary Residence
- Reason 5 - You Have Decent Credit
This will help you make the final decision on whether or not you want to go through with trying to qualify for this program.
If you have any additional questions, contact me and I’ll help you get started.
Reason 1 - You are Middle to Low Income.
This is the exact group that this program was made for.
If you have an income level that is below the limits that are decided based on where you are and what kind of loan you are starting with, then you will be able to get this gift.
The point of giving it to those that are making less money is because they have a harder time gathering up the money to put the down payment on a house.
If you fall in that range and have the credit score and debt-to-income (DTI) ratio to match, then you’ll be well on your way to getting some help when it comes to getting your house.
If you are getting a loan through FHA, VA, or USDA, then your income limit will be $91,195 in San Diego.
If you are getting a conventional loan, then your income limit is a bit higher at $117,600 in San Diego.
Reason 2 - You Can’t Build Up Enough Savings for the Down Payment.
This may happen because you’re just not making enough to really gather up savings.
This may also happen because you’re trying to pay off other debts that you have.
Regardless of what is not allowing to get the savings in order to make the down payment, you will find that this program will be able to really help you get on your way.
In fact, the best part of the program is that you won’t have to pay back the amount that you get.
It is considered a gift that is helping you get your start.
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Reason 3 - You Live in or Want to Live in California.
The GSFA program is only in California, so you will have to be looking at residences within the state in order to qualify for the loan.
However, there are few limits on what kind of property you can purchase.
The home can already be completely done and all you have to do is move in.
The home can also be one that you’re working on building.
As long as you can get a loan for it, then you should have a shot at qualifying for the GSFA gift.
However, if you’re concerned about whether or not the property you are looking at will qualify, then you may want to talk to a qualified lender.
These lenders come in all shapes and sizes.
Some of them are smaller lenders and some of them are larger lenders, but they will help you get on your way to a new home that you enjoy for many years to come.
Reason 4 - You’re Getting a Primary Residence.
This is the biggest restriction on the kind of property that you are able to get with the help of the GSFA gift.
This restriction is to make sure that you are getting a home to live in, not just to visit every now and then or rent out.
While renting out a house can be a great way to make some extra money, the intended purpose of the gift is to help people get into a home.
However, if you do use the gift to get a home and then eventually move out of it and do rent out the property, then you don’t need to worry about paying back the gift at that point either.
Once the house is yours and you are more financially stable, then you are allowed to do whatever you think is right.
If that means that you take on some landlord responsibilities and rent out the property, then so be it.
Doing so could probably help you pay for the mortgage of another house or even get you started on a track of making money for retirement by tucking away the rent money for savings after you’ve paid everything that needs to be paid.
Reason 5 - You Have Decent Credit.
This is another way that the GSFA looks at applicants that need down payment assistance.
Having higher credit means that you are more likely to pay back the loans that you take out for a home.
It also means that you will be more responsible.
When they look at users that have higher credit scores, they know that these people aren’t going to default on their loans.
Giving the money to someone that might stop paying off their loans is a risk for the lenders as well as GSFA.
Both parties want the money in the hands of someone that is going to be responsible for it.
If you have good credit, then this is good for you.
The minimum score that you will need in order to qualify is 640.
If you want to know even more about the GSFA down payment assistance program, then take a look at our main article on the subject.
Of course, you might have more questions about what’s going on with the GSFA program, but I have information about the loan limits, answers to some commonly asked questions, and some pros and cons about the program.
I encourage you to take a look at everything see whether or not the GSFA down payment assistance program is right for you.
If there’s something here that you still don’t quite understand, contact me and I’ll be able to help you get on the right track.
What do you think – is this program for you?
Leave me a comment below – or, call/text me at (760) 297-4539.
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