San Diego GSFA Down Payment Assistance Program Pros and Cons (2017 Update)

When you’re looking at the GSFA down payment assistant program, you might not be sure if it will be the best fit for you.

The best way to know if a program is going to be good for you is by balancing out the pros and the cons of the program and trying to figure out if it will be worth the negative aspects.

Here's a quick rundown of our list:

If you want to know more about the program, you’ll want to check out the more detailed post that we have about it.

Pros

San Diego GSFA Down Payment Assistance Program Pros and Cons (2019 Update)

Up to 5% of the total loan.

This is the whole point of the program.

You’ll be getting money up front that you won’t have to worry about paying back because the gift will be forgiven at the end of your time paying for the house.

This is great news for individuals that will be able to make those monthly payments but can’t gather up enough capital in order to get the down payment.

While the 5% might not cover the entire down payment, depending on the loan that you have gone with, it will be a sum that will really help you get started on paying for that house.

Of course, should you be lucky enough to have a lower down payment, the extra money can go towards the closing costs of your home as well.

This means that you won’t have to be as worried about getting the house paid for initially.

Must Read: San Diego Down Payment Assistance Programs - Rates, Terms, Limits...

Meant to help out people.

Because of the qualifications that are attached to the program, this means that it’s aimed at a very particular group of people.

These are individuals that are paying rent and able to do that from month to month but don’t have enough income to build up the savings for the down payment.

These are individuals that aren’t steeped in debt but might have some that is contributing to the fact that they can’t build up savings.

This can even be a goal for some people that are working on cutting down their debt and improving their credit.

Once you reach the qualifications, then you’ll be able to look at getting a house.

This can be a way to really motivate yourself.

Few limits on the house.

While you have to use the program for your primary residence, that doesn’t limit you that much on what kind of home that you can have.

You can have a home that is not yet built and use the loan and the program to pay for the house’s construction.

You can use it for a pre-existing home.

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You can even use it for a home that will have four units in it.

The biggest limits that you will find are already in the loan that you have to have in order to be eligible for the program.

If you are meeting those standards and intending to live in the house yourself, then everything will work out.

With that kind of freedom, you’ll be able to get the home that you really want and not just one that will work.

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You don’t have to pay this back.

After you have closed on the mortgage loan and taken it over, you will be in charge of the loan.

At this point, you also won’t have to pay back anything that you were given.

The program gives out gifts and thus they are not something that you really ever have to give back.

This makes sure that someone doesn’t suffer from surprise amounts of debt later on.

The point of the program is to help out and not cause more problems.

Cons

San Diego GSFA Down Payment Assistance Program Pros and Cons (2019 Update)

Works only in California.

This program may sound wonderful to people everywhere, but the program is only for those that live in California.

While this might make getting a home in the state a little bit easier, this will be a limit that some people might not like.

However, considering that the prices of homes are so high in California, this program is very appropriate.

This also means that you will need to work with someone that’s in the state when it comes to working with a lender.

There are larger companies that you can work with, but there are also smaller, local companies that can help you with the lending process.

This might mean a bit of your time by phone calls to the lender.

You might even want to go in person and talk to someone if you don’t like exchanging some documents online.

That can be an extra cost that you hadn’t considered if you are moving from out of state.

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Credit score minimum and DTI maximum.

Having a minimum credit score can ensure that the people that are getting this gift are more likely to do what they are supposed to do and go through with buying the home and paying it off in time.

Giving this gift to those that are going to stop paying can cause problems for lenders and those are not the kinds of people that lenders want to give money too.

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The same is said when it comes to having a debt-to-income (DTI) maximum.

If someone is already steeped in debt, then lending to them is a gamble since they have other loans to pay off.

Will not cover the whole down payment sometimes.

Even though we already said that covering part of the down payment is better than having to pay for all of it, this can still cause some problems for individuals.

Getting a loan and having to make a 10% down payment means that at most, the gift will cover half of it.

This is assuming that you get the most that the GSFA can give you or that your down payment is only 10%.

The amount that people have to pay can vary wildly depending on the person and the kind of loan.

You might not get that much or your down payment percentage might be different.

Even having to pay for 5% might prove difficult for some individuals that are living paycheck to paycheck.

This is a fact that you can discuss with a lender and you can ask about how much they typically see someone covered for.

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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, 

Scott 

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