SACRAMENTO – Craig Ferguson, Golden State Finance Authority deputy director, joined Kim Dolbow Vann, U.S. Department of Agriculture Rural Development California state director, on Wednesday to announce a partnership on a new gift program that will benefit rural homebuyers in California.

Individuals or families purchasing a primary residence in California with a USDA Rural Development Single Family Loan Guarantee through the GSFA Platinum Program will be eligible for assistance of up to 4 percent in the form of a nonrepayable gift.

The amount of the gift is based on the amount of the mortgage loan. Funds from the gift can be used for closing costs and/or principal reduction.

“Partnerships like this one with USDA Rural Development are essential to meeting the needs of California homebuyers.” said Ferguson. “We are excited to expand our existing down payment assistance program and focus on how to help more rural homebuyers achieve the dream of homeownership.”

USDA’s loan guarantee program offers 100 percent financing and is available to low-to-moderate income homebuyers in rural areas, typically communities with populations of 35,000 or fewer.

Coupled with the GSFA Platinum Program, qualifying homebuyers may be able to purchase a home with no money out of pocket.

“With California’s high home prices, affordability is a real struggle for many homebuyers,” said Vann. “Through this partnership with GSFA, we have another great tool to help increase affordability, and support rural prosperity.”

To participate in the program, homebuyers must meet income eligibility and the property must be located in an eligible rural area.