GSFA Platinum Forgivable Loan

What is GSFA Platinum Forgivable Loan?

GSFA Platinum Forgivable Loan is a forgivable loan for homebuyers in California.

• Forgivable second mortgage up to 5% of first mortgage amount. Forgiven after 3 years if buyer remains in home. Alternative to GSFA grant option. Minimum 640 FICO, statewide CA.
• Up to 5.0% of purchase price in assistance.
• loan forgiven after required occupancy.
• Funding comes from Bond/Authority.

How much assistance does it provide?

GSFA Platinum Forgivable Loan provides assistance worth 5.5% of the purchase price, as set by the program.

• The program asks buyers to contribute 1% of purchase price (borrower minimum).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

GSFA Platinum Forgivable Loan is forgiven after 3 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale or refinance within 3 years.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

GSFA Platinum Forgivable Loan is open to buyers who will live in the home as their primary residence.

What are the income limits?

GSFA Platinum Forgivable Loan sets its income limit as follows: Contact program provider for current income limits.

• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

GSFA Platinum Forgivable Loan caps the purchase price as follows: Contact program for current purchase price limits.

• Eligible property types include Single-family (1-4 unit), FHA-approved condominium, townhome/PUD.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

GSFA Platinum Forgivable Loan serves buyers purchasing anywhere in California.

How do you apply?

Applications for GSFA Platinum Forgivable Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved through GSFA lender portal, and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.