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FINANCING
Home financing can be a pleasure or a pain. It really depends on you. But before we go any further I want you to read this article from Forbes magazine which talks about The Perfect Loan File. This should be required reading for anyone buying a home. More specifically, it goes into why the lenders ask for so many documents just to get a home loan.
But for many, just getting the down payment can be discouraging enough. Fear not. There are multiple ways to accomplish this. However, it's a common misconception that you always need 20 percent down to buy a home.Here's the lowdown on the most popular low-down alternative payment options:
FHA Loan
Traditionally the mortgage of choice for first-time buyers, the Federal Housing Administration (FHA) offers government-insured loans with as little as 3.5 percent down.
The most popular FHA loan option, the 203(b), is widely available from lenders across the country. You "may" qualify with a credit score of just 500, although there may be limitations on many condo purchases.
Home Possible from Freddie Mac
This program allows you to put between 3 and 5% down, as long as you intend to use the home as your primary residence, and don't currently own or share ownership of another house. You'll also need to complete a required homeownership education program online.
Conventional 97 from Fannie Mae
Just 3% down is enough to help you qualify for a Conventional 97, as long as you're applying for a fixed-rate mortgage on a single-family home that's less than $417,000. You'll also need to participate in a homeownership education program, and at least one of the purchasers applying for the loan must be a first-time buyer.
HomeReady from Fannie Mae
Another option that requires as little as 3 percent down, HomeReady can also offer below-market interest rates. Additionally, this program allows non-occupant borrowers to apply. For example, parents can secure this type of loan for a young adult who's just starting to establish credit.
Some First Time Homebuyer Programs to consider:
The incredible NACA mortgage allows NACA Members to purchase their homes with:
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No down payment
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No closing costs
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No fees
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No requirement for perfect credit
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And at a below-market interest rate
Palm Beach County SHIP Purchase Assistance Program
Highlights
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Maximum amount up to $100,000
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is require
America’s Home Grant® program (Bank of America)
Program released Sept 2022
Alachua, Baker, Brevard, Broward, Charlotte, Citrus, Clay, Collier, De Soto, Duval, Escambia, Flagler, Gadsden, Gilchrist, Hernando, Highlands, Hillsborough, Indian River, Jefferson, Lake, Lee, Leon, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Volusia, Wakulla, Walton Counties
Highlights
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Maximum amount up to $7,500
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May be used for nonrecurring closing costs, such as title insurance and recording fees
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Client does not have to be a first-time homebuyer
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Homebuyer education is not required
City of Boca Raton SHIP Purchase Assistance Program
Highlights
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Maximum amount up to $90,000
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
City of Boynton Beach SHIP program
Highlights
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Maximum amount up to $60,000
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
City of Deerfield Beach Purchase Assistance Program
Highlights
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Maximum amount up to $50,000
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May be used for down payment and/or closing costs
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Client does not have to be a first-time homebuyer
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Homebuyer education is required
City of Fort Lauderdale Purchase Assistance Program
Highlights
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Maximum amount up to $75,000
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
City of Lauderdale Lakes Purchase Assistance Programs
Highlights
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Maximum amount up to $25,000
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
City of Lauderhill Purchase Assistance FTHB Program (SHIP Funds)
City of Lauderhill
Highlights
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Maximum amount up to $50,000
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
City of Miami First Time Homebuyer Program
Highlights
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Maximum amount to be determined by Provider
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
Miami-Dade Economic Advocacy Trust - Homeownership Assistance Program HAP
Highlights
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Maximum amount up to $12,250
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
City of Miami Gardens Purchase Assistance Program
Highlights
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Maximum amount up to $20,000
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May be used for down payment and/or closing costs
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Client must be a first-time homebuyer
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Homebuyer education is required
To discuss the best option for you and to get a head start on your home search, get a hold of a lender or contact us right now!
Not quite ready to talk to a lender just yet? Use the simple calculator below to figure out what your payments may be on that home you have your eye on.
