If you've seen "CaliforniaGO™: up to $10,000 toward closing costs, no income caps, no first-time buyer requirement," you may have wondered if it's a state program. It isn't.
The name sounds official, but CaliforniaGO is a marketing program run by GOTOHOME, Inc., a private real estate brokerage. Its own page lists "no government waiting lists" as a selling point. It's a lead funnel with a government-sounding name.
Where the $10,000 comes from
GOTOHOME's industry partnerships page says the buyer incentives "may be funded through participating Realtor commission contributions."
So the $10,000 isn't new money. It's a slice of the commission your agent was going to collect anyway, handed back to you. It's like a store marking a jacket up 40% and then advertising "$50 off."
The better question is why the commission was big enough to give $10,000 back in the first place, and how much of it you're still paying.
The fine print
- "Up to." The page says the credit is "not guaranteed" and depends on transaction terms and participating professionals. Loans are subject to credit approval.
- A short list of agents. GOTOHOME's partner page lists "only 3 Realtors" and "only 3 loan professionals" per city. If you want the credit, you choose from that list. They aren't competing for your business.
- Data first, terms later. The sign-up form asks for your income, FICO score, and down payment before it tells you what you'd actually receive.
- "Already working with a Realtor? Register anyway." They want your information either way.
The math
Assume a 2.5% buyer-broker fee. It's negotiable, so yours may differ. Here's the best case for CaliforniaGO, where you get the full $10,000, next to what comes back to you with Arrivva.
| Purchase price | 2.5% buyer-broker fee | Back to you: CaliforniaGO (best case) | Back to you: Arrivva |
|---|---|---|---|
| $1,000,000 | $25,000 | $10,000 | $15,250 |
| $1,500,000 | $37,500 | $10,000 | $27,750 |
| $2,000,000 | $50,000 | $10,000 | $40,250 |
Even at the maximum, the credit is capped at $10,000, while the commission keeps growing with the price. At $1.5 million, you'd still be paying $27,500 for representation after the credit.
How Arrivva handles it
Buyers pay Arrivva a $9,750 flat fee, set in writing before you make an offer. The buyer-broker fee is written into the offer you submit. We keep $9,750 of it and everything above that comes back to you as a rebate at closing. Nothing is paid up front, and if you don't close, you owe nothing. No cap, no short list of agents, no form asking for your FICO score first.
You can use the rebate to strengthen your offer, cover closing costs up to your lender's limits, buy down your rate, or take it as cash after closing. More on that in Why Real Estate Rebates Are Great for Buyers.
Here's what else comes with it:
- Full service. The flat fee isn't a stripped-down version of real estate. Arrivva has run this model for 10 years, and I've been a broker since 1997, with more than $3 billion in lifetime transactions.
- No dual agency. We never represent both sides of a deal. Here's why that matters.
- Mortgage pricing you can read. Arrivva Mortgage passes through near-wholesale pricing for a flat $5,750.
- Fully underwritten preapprovals. Sellers take them seriously. And bridge and swing financing can help buyers, including first-timers, compete with cash offers. See Prequalified, Preapproved, or Underwritten.
- Escrow and title, shopped. We help you compare escrow and title costs so you're not overpaying there either.
Questions to ask any "program" before you register
- Who is paying for this credit, and what happens to it if the deal changes?
- Do I have to use your agent and your lender to get it?
- Is the credit guaranteed in writing before I make an offer?
- How many agents can I choose from, and why those?
- What's the total I'll pay for representation, with and without the credit?
If a program can't answer those in writing, it's marketing, not a benefit.
Looking for an actual state program?
The state's housing finance agency, CalHFA, offers down payment and closing cost assistance programs. They come with income limits and other requirements, but they are what the name suggests. We're happy to help you check whether you qualify.
Fred Glick, Founder & Broker of Record, Arrivva Inc. CA DRE #01527098, #01507615. NMLS #1763843.
Your next step
Buying? Arrivva represents buyers for a $9,750 flat fee, and the rest of the buyer-broker fee comes back to you as a rebate at closing. Nothing up front; you pay only if you close. See how buying with Arrivva works.
Keep reading
- Why Real Estate Rebates Are Great for BuyersA buyer's rebate returns part of the buyer-broker fee to you at closing. Here's how Arrivva's rebate works, the ways to use it, and what to know about lenders and taxes.
- How to Buy a Home Without Overpaying in CommissionsYour buyer's agent isn't free. The fee is built into the price. Here's how a flat-fee buyer's broker works, and how the rest of the buyer-broker fee comes back to you as a rebate.
- Prequalified, Preapproved, or Underwritten: What Stage Is Your Mortgage In?Sellers compare offers by how likely they are to close. Here's the difference between prequalification, preapproval, and a fully underwritten preapproval, and why it decides whose offer wins.