Due to current market conditions, we are changing the Down Payment Assistance (DPA) structure for the GSFA Platinum Program, effective June 21, 2022.
Effective for all GSFA Platinum transactions, reserved on or after June 21, 2022, the down payment assistance options for the GSFA Platinum Program will be as follows:
DPA Amount:
- Up to 5.50% of the Total First Mortgage Loan amount.
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.
DPA Form:
For Platinum standard transactions:
- An amortizing 15-year Second Mortgage Loan, sized up to 5.00% of the First Mortgage Loan Amount.
For Platinum “Select” transactions:
- An amortizing 15-year Second Mortgage Loan, sized at 3.50% of the First Mortgage Loan Amount, with optional Gift funds, up to 1.50%.
For Platinum “Assist-to-Own” transactions:
- A deferred Second Mortgage Loan, sized at 3.50% of the First Mortgage Loan amount, with optional Gift funds, up to 2.00%.
Amortizing Second Mortgage Loan Terms:
- 15-year Loan Term.
- Note Rate of Second Mortgage is a fixed interest rate of 2.00% above the First Mortgage Note Rate.
- Amortizing loan with monthly payments.
- Second Mortgage is due and payable upon sale, refinance or payoff of the First Mortgage.
- No subordination allowed.
- Lender must conform to federal RESPA and Truth-in-lending laws in disclosing the terms of the Second Mortgage.
Deferred Second Mortgage Loan Terms:
(“Assist-to-Own” Transactions)
- Note Rate of Deferred Second Mortgage is 0%.
- Non-amortizing loan; no monthly payments are due.
- Second Mortgage is deferred and due and payable in full upon sale or refinance of First Mortgage.
- No subordination allowed.
- Lender must conform to federal RESPA and Truth-in-lending laws in disclosing the terms of the Second Mortgage.
Lender upfronts the DPA amount at closing to be reimbursed by the Servicer, on behalf of GSFA, upon purchase of the Platinum First Mortgage Loan.
