Even though this program isn’t a loan program, there are still limits to what they will be able to give you.
This is because they can’t cover the entire down payment for every single person that applies for the program.
By giving a small sum that will help an individual get the right amount of money, they make sure that they are getting help out to more people who will then feel at least a little relief when it comes to purchasing a house of their own.
So let’s dive into the topic of the limits that come with the GSFA down payment assistance program and what you need to know before you get involved.
Here's a quick rundown of our list:
Why There Are Limits
The limits, which exist as percentages that GSFA will gift a person, have to be there because there are many people that need help.
With the prices of homes in California on the rise, people are having a harder and harder time getting into a house.
The GSFA program is meant to help homeowners new and old get into a home without having to completely empty out all of their savings and get rid of any safety net that they might need.
Getting more people into houses means that there are fewer people homeless or on the verge of being homeless when they are struggling.
Many people with reasonable income struggle in California to get into a house and afford everything that comes along with the loan such as the down payment and the closing costs.
Blog Post Interrupt – How Much Do You Need For a Down Payment?
Now Back to the Blog Post
Your Loan Program and the Limits
One of the biggest factors when it comes to the amount of money that you are going to be able to get from the GSFA down payment assistance program is the kind of loan that you have.
Conventional loans will receive a smaller down payment assistance amount, but they also have a higher limit on income.
Those individuals that have a conventional loan can make $117,600 and will receive 3% on the most typical basis.
The lower percentage and the higher income limit is because a conventional loan will have probably vetted you and made sure that you are capable of paying more money as time goes on.
You will still have to meet the requirements that are associated with the GSFA program even if you get the conventional loan.
However, if you don’t have a conventional loan and instead got one that is associated with the FHA, VA, or USDA, then you are going to have a lower income limit and a higher percentage of the loan that the GSFA will be willing to cover.
These individuals will have an income limit of $91,195 and a 5% gift from the GSFA.
The reason for a higher percentage of the money going to those on a different loan program is because many of these loan programs are directed at those that are having a harder time getting housing.
There are already limits that they will have to meet for these loans.
Many of these limits are lower than what you see when it comes to the limits set by the GSFA.
The requirements of the GSFA are a little stricter which will mean that only a smaller percentage of these individuals are going to qualify for the gift at all.
The Maximum Loan Amount
While there isn’t a number that is set in stone for how much the GSFA will give you, they do have a loan amount that is at the top of their list.
In San Diego, this number is $612,950.
This is the largest loan amount that they will provide a gift for.
Because the gift amounts are usually 5% and 3%, at most you would see $30,647 or $18,388 from the GSFA.
Even though this is an example, you will need to know that there are different limits for other counties in California.
If you start looking in one county, then start looking at another, you may want to know the maximum loan amount for that county as well because it might change dramatically.
The reason for the shifting variables is because different counties have different prices for homes.
Some counties have much more expensive homes, so the loan amount has to be higher.
San Diego County is one such county with typically higher priced homes.
This is why the maximum loan amount is high as well.
Of course, even if this is the limit for the GSFA, this is not always the limits for the loans.
If you want to know more about the limits for other kinds of loans, just contact me and I’ll be more than happy to help you figure out what will work for you.
Getting help with your loan can be truly helpful when you’re trying to get a house.
The money from the GSFA program can help get you into the right house.
Understanding the limits of the gift that you can get helps you understand what you will be able to get and what you won’t be able to get.
Beyond the limits of the amount of money that you can get, there are other qualifications that you need to be concerned about.
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.
Your Free Grant Insider,
5 San Diego Down Payment Assistance Secrets Revealed!