This is the part III of a V part series with Golden State Finance Authority.

GSFA OpenDoors™ Program is designed to increase homeownership opportunities for lowto-moderate income individuals and families in California.

DPA Amount:
• Up to 7.00% of the First Mortgage Loan amount.

DPA Form:
• DPA is in the form of a Gift and a deferred 30-year term, non-amortizing loan with no monthly payments

DPA General Terms:
• Proceeds may be used for down payment and/or closing costs;
• There must be no cash back to the borrower from the DPA proceeds;
• Note Rate of Second Mortgage is 0%;
• Non-amortizing loan with no monthly payments;
• Second Mortgage is due and payable upon sale, refinance or payoff of the 1st mortgage;
• No subordination allowed;
• Lender must conform to federal RESPA and Truth-in-lending laws in disclosing the terms of the Second Mortgage.

Mortgage Spotlight Part III: The GSFA OpenDoors Program

Share

Embed