We are excited to announce some new changes to GSFA Platinum mortgage loans regarding down payment assistance! The program features down payment or closing cost assistance which is offered as a forgivable second mortgage. This second mortgage is forgivable after 3 years and with 0% interest rate. It has no monthly payments and is completely forgiven as long as the first loan is financing is in place after 3 years. The down payment assistance amount can be offered up to 5% of the first mortgage loan amount. This means that if your first loan amount is $300,000, you could potentially receive a maximum of $15,000 to put towards your closing costs or down payment. If you keep the initial $300,000 loan for the next 3 years and continue to pay it off and live in the home as a primary residence, then the $15,000 second mortgage is forgiven with no repayment.
The main take away is, these new changes will help families better afford a home by offering down payment assistance through a forgivable second mortgage. GSFA’s focus is to generate the most innovate and competitive products that “bridge the affordability gap in homeownership” and this program does just that. As an approved lender of GSFA, Broadview Mortgage is ecstatic to be able to offer this to our borrowers! If you have questions regarding the program or any other mortgage questions please feel free to reach out to your local branch. We are more than happy to answer any questions and see if you qualify.