Mountain West Financial, Inc and Golden State Finance Authority (GSFA) have collaborated and created an exclusive program through Freddie Mac, which assists first-time homebuyers in California get into a home with little to no money out of pocket.


What can the GSFA Home Ownership (HOT) Program do for Homebuyers?


The GSFA HOT Program helps low-to-moderate income homebuyers in California purchase a home by providing down payment and/or closing cost assistance (DPA), up to 7% of the First Mortgage Loan amount.


Program Highlights

  •          Financial assistance up to 7%, to use for down payment and/or closing costs.

o   3.5% Deferred Second Mortgage

o   Up to 3.5% Forgivable Grant

  •          GSFA has an additional subsidy grant for low income borrowers:

o   $1,500 < 80% Area Median Income (AMI)

o   $2,500 for < 50% AMI

  •          Homebuyer(s) don't have to be a first-time homebuyer to qualify
  •          Flexible income limits (low-to-moderate income)
  •          FICOs as Low as 640
  •          No First-Time Homebuyer Requirement
  •          Program Available throughout California
  •          Funding for Assistance Provided by GSFA
  •          On-going Funding Source


Does the DPA Have to be Paid Back?

This program's DPA includes both a 2nd mortgage and a forgivable grant. The DPA Second Mortgage provided through the GSFA HOT Program has a repayment requirement. The Deferred DPA Second Loan has a 30-year term and a zero percent note rate. It accrues no interest, has no monthly payments, but is due and payable upon sale, refinance or payoff of the First Mortgage. The additional DPA is provided as a Grant, which does not have to be repaid.


How Much DPA is available?

The size of DPA available to you depends on the DPA you choose, ranging from 3.50% to 7.00%. To calculate the DPA in dollars, multiply the total combined DPA percentage by the First Mortgage Loan amount.  So, for example, on a $300,000 Mortgage Loan, the HOT Program can provide DPA up to $21,000 when using the 3.5% second combined with the 3.5% grant.