Any time you are investing in a large purchase, such as a home, it is normal to wonder if you are making the right decision.
Chances are you’re worried about what it will cost and if you’ll be able to pay for it.
You may even be concerned whether or not you will qualify for a mortgage loan that you can live with.
What you may not think about is that there are special programs designed to lighten your load, while still allowing you to be able to afford a home you like and can feel safe in.
Here’s a look at 2 such grant programs that you can take advantage of when you live in San Diego.
Here’s a quick rundown of our list:
- 5% GSFA
- 1% Down/2% Lender Equity Boost
This program is also known as the San Diego GFSA Platinum Down Payment Assistance Program.
It calls for GFSA, or Golden State Finance Authority, to provide a gift of up to 5% towards the purchase of the total amount of a home loan.
Since it’s considered a gift, it is non-repayable, which means it can help you out hugely in terms of help making your down payment.
- Do not have to be a first time homebuyer.
- Can be gifted up to 5% of the amount of loan.
- Need a FICO score of at least 640.
- May be used with some types of refinances.
- Can be used for down payment or costs associated with closing.
- Must meet specific income limits.
- Cannot have more than 50% debt to income ratio.
Another thing that is important to know is that you can only use this program if the home is going to be your primary residence.
There is no amount of time you must live in a home after buying it, so you don’t have to live in it for a certain number of years to be qualified, like with some other types of programs.
In regards to the home you are buying, it can be a brand new home that was just built or something that is older and has had previous owners.
It is also applicable for properties that are 1 to 4 units.
If you think you’re eligible, you may apply for the program, but you’ll have to do so through a lender that uses this special program.
You’ll also need a specific type of loan, although many of the most common types of loans will qualify, like FHA, VA, USDA, and Conventional.
Another program that can help you get closer to your dream of owning a home is known as the 1% Down/2% Lender program.
It is a straightforward process that can help you out when buying your first home.
What happens is a homeowner puts down a 1% down payment.
Your lender will then provide a grant of 2% to go towards your down payment as well.
What this does is allow you to start gaining equity in your home right away.
Keep in mind that some loans require around a 20% down payment, so this is much different from other programs, and will cost you a lot less, right off the bat.
For some a high percentage down payment just isn’t possible, especially if the home buyer is young and has debts that need to be paid back as quickly as possible.
Many people nowadays that are looking to purchase homes are young professionals, who haven’t had the time to save enough money to make traditional down payments.
The grant that is given in this program never has to be paid back, which is one less thing you’ll have to worry about.
- There are income limits, even for non-borrower household members.
- Cannot have more than 50% debt to income ratio.
- Must take homebuyer classes.
Not every lender out there participates in this program, so you will have to find one who does.
My preferred lender participates, so if you live in San Diego, you are in luck, since this is available right here for you.
Don’t think that a 3% down payment on your home isn’t beneficial either, because it can actually help you more than you think.
This 3% equity in your home can mean the difference may allow you to get a better home loan and can keep you from having to pay mortgage insurance, in certain situations.
Just because you may feel like you don’t have enough money to purchase a house right now, you may actually be lying to yourself.
No matter how much you have or how much you make, there are likely options out there for you to take advantage of, especially when it comes to home loan buyer grants.
These grants allow you to put a very low amount of money down, and still be able to qualify for loans on nice homes and properties throughout San Diego.
While each program has requirements that you must meet, you can take part in these programs and become a homeowner, pretty much whenever you’re ready to try.
What they are really offering is help with down payments, so you won’t have to carry that burden, which is one of the biggest fears when people are considering purchasing a house.
Imagine if you didn’t have to worry about that.
Would you still think it was impossible for your family to be in a home that you could enjoy?
Do yourself a favor and look into these programs, especially if you have been on the fence on whether or not to take the plunge when it comes to home ownership.
What do you think?
Are these some great options or what?
Leave a comment below — or, call/text me at (760) 297–4539
Your Home Buying Insider,