June 10, 2024 | Bulletin #24-08

NEW ReCoverCA Homebuyer Assistance Program Now Available

Homebuyer Assistance Up to $350,000 for Households to Support Fire Recovery in California

GSFA is excited to announce the official launch of the ReCoverCA Homebuyer Assistance (DR-HBA) Program today!

The DR-HBA Program is designed to assist individuals and families in California who were impacted by the devastating wildfires in 2018 and 2020 in purchasing a home located outside high or very high Fire Hazard Severity Zones.

View Program Overview

The Program provides homeownership assistance in the form of a forgivable loan, up to $350,000 per qualifying household. The homebuyer assistance is designed to cover the funding gap between the First Mortgage Loan amount and the purchase price of a home.

Program eligibility is limited to LMI homeowners and renters whose primary residence was located in high or very high Fire Hazard Severity Zones at the time of the qualifying disasters.

2018 Qualifying Disaster Areas:

Butte, Lake, Los Angeles and Shasta Counties.

2020 Qualifying Disaster Areas:

Butte, Fresno, Los Angeles, Napa, Santa Cruz, Shasta, Siskiyou, Solano and Sonoma Counties.

The Applicant(s) must meet the income limit of LMI households, as defined by HUD as Area Median Income of 80% and below as published on the HUD website and based on household income, and the County in which the property being purchased is located.

The homebuyer assistance provided through the Program is in the form of a forgivable deferred Second Mortgage Loan with a zero percent note rate. The HBA Loan is intended to cover the Applicant’s down payment, closing costs (customary/reasonable), and prepaid expenses up to a cap of $350,000. It is completely forgiven after the 5-year ownership and occupancy requirement has been met (20% is forgiven pro-rata each year).

Complete program policies and eligibility requirements can be found in the DR-HBA Program Terms Sheets, published on the GSFA website in the Lender Participation Guide.

Additional Resources

The ReCoverCA Homebuyer Assistance (DR-HBA) Program is provided by the California Department of Housing and Community Development (HCD) in collaboration with Golden State Finance Authority (GSFA) as Program Manager. Funding for the Program is made possible through a Community Development Block Grant - Disaster Recovery (CDBG-DR) grant from HUD. GSFA is a duly constituted public entity and agency.

© 2024 Golden State Finance Authority. All rights reserved.

Program Bulletins are intended for mortgage professionals only. This is not an offer for extension of credit nor a commitment to lend and is subject to change without notice. Complete program policies, eligibility requirements, loan applications, interest rates and annual percentage rates (APRs) are available through GSFA Participating Lenders.

For questions or additional assistance regarding this bulletin, please Contact Us.

Stay Connected

Facebook  Linkedin  Instagram  Youtube  
Call us toll-free
(855) 740-8422
Visit us at www.gsfahome.org