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The GSFA’s Platinum “Select” Program Enhances Housing Affordability

On August 6th, 2018, the Golden State Financing Authority (GSFA), announced the addition of a Platinum “Select” feature, which is the latest addition to the GSFA Platinum program.

The GSFA Platinum “Select” program allows borrowers to take advantage of down-payment assistance with a non-repayable gift instead of a second mortgage. By receiving a gift instead of an additional loan, many individuals and families across California will be able to access affordable financing for a comfortable, reliable home. If you qualify, this can be extremely beneficial to your financial future.

GFSA Creates Platinum “Select” for Greater Down-Payment Assistance

To qualify, you will have to meet certain standards, and the loan you select will also need to qualify. Eligible loans include FHA Energy Efficiency Mortgages, as well as FHA, VA, or conventional mortgages if you are in an eligible career. In California, this will include law-enforcement officers, sheriffs, border patrol agents, and correctional officers. It also applies to people serving in almost any law-enforcement capacity.

Other important careers, such as firefighters, paramedics, and EMTs are eligible for the Platinum “Select” options. If you are a teacher that is a member of the California State Teachers’ Retirement System or University of California Retirement Plan, you are also eligible for a loan through this program. There are many other eligible careers, so be sure to speak with a professional lending agent to see if your career applies.

To help you qualify for this benefit, lenders will need to upload documented proof of your eligibility within five days of submitting a loan reservation, which is done online.

Income Limits for Platinum Program Updated

As an additional change, the GSFA has also updated their income limits for the Platinum Program. These income limits are actually quite large, relatively speaking, and allow many people to benefit from the program. They are determined on a county-by-county basis, so different California residents will experience different limits.

In San Diego County, the limit is currently $163,600. In nearby Riverside County, the limit is $131,600. The lowest limit is $124,000, which is available in many California counties, including Fresno, Imperial, Kings, Mendocino, and more.

Many California counties have limits over $200,000. In Alameda and Contra Costa, the limit is $208,800, while in Marin, San Mateo, and San Francisco, the limit is $236,800. The highest limit is in Santa Clara county, where citizens earning $250,000 a year are still eligible for the Platinum Program.

Income Limits for GSFA Affordable Subsidy Also Updated

In addition to the the Platinum “Select” feature, the GSFA has also modified their income limits for the GSFA Affordable Subsidy program. The GSFA Affordable Subsidy program is an additional incentive that is available to low-income borrowers who are using a conventional loan to purchase a home.

California city
The Platinum “Select” program makes homeownership more accessible across California.

The program offers two levels of assistance. The first is up to $2,500 in financial help. To qualify for this amount, a borrower must make less than 50% of the Area Median Income, which is calculated by county. For example, in San Diego County, the median income is $81,800. Therefore, to acquire the $2,500, you have to make less than $40,900 a year.

There is also a level that allows for up to $1,500, and this is available to anyone who makes less than 80% of the Area Median Income. In San Diego, this means that anyone earning less than $65,440 is eligible for this additional assistance on their loan.

This subsidy can be extremely beneficial when you purchase a loan. It can be used for the down payment or the closing costs, but cannot be used as a cash-back benefit for the borrower.

To use the Affordable Subsidy benefit, you will start by verifying your income eligibility with a qualified lender. Assuming you are eligible, your lender will then select the GSFA Affordable Subsidy Option and reserve the GSFA Platinum Conventional Loan. Once complete, they will print GSFA confirmation documents and include the documents on your package. They will then process and close the loan.

About the Golden State Financing Authority

The GSFA is an organization created by the California state government to develop and administer programs that provide financing for residential home purchases. They are a part of California’s ongoing effort to support the housing market and make high-quality homes available to people from all walks of life. They assist in the purchase and refinance of residential property, as well as the implementation of energy-efficiency projects for both commercial and residential property. They also back the construction of multi-family housing and the rehabilitation of community infrastructures.

The GSFA was launched in 1993 and exists as part of the Government Code of the State of California. It is a public entity with the mission of providing affordable housing, which contributes to the social and economic good of all California residents.

The GSFA also participates in disaster relief. They provided over $1.5 million in assistance to help with recovery from forest fires, which helped residents with temporary housing, as well as the rebuilding or purchase of permanent residencies. While their main focus is to provide financial assistance, this disaster relief is an important component of the organization.

Since 1993, the GSFA has helped over 74,000 individuals and families with the purchase or refinance of a home. Over $531 million has been contributed to down-payment assistance, and they have participated in over $12 billion worth of home loans, including both first and second mortgages. They have issued over $2.7 billion in total bond revenue and assisted with the purchase of over 48,000 energy-efficiency upgrades for residential and commercial property.

Helping You Get the Most from the GSFA

If you are interested in getting assistance from the Golden State Financing Authority or the Platinum “Select” program, contact San Diego Purchase Loans today. We would love to talk with you and help you understand all the benefits that are available through this important program.

From funding for a down payment to additional incentives for closing costs, the GSFA is an important contributor to many California home purchases, and we will be proud to help you utilize this important resource.


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Chad Baker, CrossCountry Mortgage   
NMLS# 329451 | CCM NMLS# 3029