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 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. 

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 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% down to buy a home. Some of the programs below are for "first time homebuyers."

 

 A first-time homebuyer is an individual who meets any of the following criteria: 

 

An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).  

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 Anyway, here's the lowdown on the most popular low-down alternative payment options:

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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 580, although there may be limitations on many condo purchases.

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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.

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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.

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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.

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USDA loan

 For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender, but often 640. Low mortgage insurance rates

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Florida Assist (FL Assist)

FL Assist is a loan of up to $10,000 at 0% interest and with no monthly payments. It is a second mortgage that is not forgivable. Although repayment is deferred, the full loan amount is due when refinancing or selling the property, or if you otherwise cease to occupy the home.

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Family Self-Sufficiency (FSS) Program - HUD

( Buy a home using Section 8 )

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Highlights​

• Housing choice voucher can be used as income to help qualify for a home loan.

• FSS offers a financial incentive to families through establishment of an escrow/savings account which becomes available to the family upon successful completion of their Contract of Participation, and upon achievement of final goals.

• Participants have 5 years to achieve their goals

Florida Homeownership Loan Program 

FL HLP allows you to borrow up to $10,000 at a 3% interest rate repayable in monthly installments over 15 years. However, should a homeowner refinance, pay off the loan early, sell, or otherwise transfer the deed, the remaining balance must be paid in full.

                                                         

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HFA Preferred and HFA Advantage PLUS Second Mortgage

Borrow up to 3%, 4%, or 5% of the loan amount as a second mortgage with a 0% interest rate and no monthly payments. The loan is forgiven at a rate of 20% each year, so after five years you owe nothing.Depending on the program you qualify for, you may never have to repay the loan, provided you remain in residence for at least five years.

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Florida Housing Finance Corporation: Housing assistance programs, home buyer education courses, and online loan eligibility tools

      (Florida Hometown Hero's Program is also under this) 

With the Florida Hometown Heroes borrowers can receive up to a maximum of $25,000 in down payment and closing cost assistance. In addition, you can pair this program with additional assistance programs to maximize the amount of received assistance.

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FHFC First Mortgage Program: Home loans for first-time buyers in Florida

 

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FHFC DPA: Forgivable second mortgages for down payment and closing cost assistance

 

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City of North Miami: Housing assistance and home buyer education classes

 

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Miami Dade County HAP program:  Zero-interest deferred loan provides funding for low-to-moderate income homebuyers towards down payment and closing costs for their primary residence, making it easier to get approved for a mortgage.

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GNND

The Good Neighbor Next Door program allows buyers to purchase their homes with:

• a discount of 50% off from the list price of the home.

• Available only to - full-time law enforcement officers, teachers, and firefighters/emergency responders

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NACA

The incredible NACA mortgage allows NACA Members to purchase their homes with:

• No down payment

• No closing costs

• No fees

• No requirement for perfect credit

• And at a below-market interest rate

• NACA HOT-PHA Program 

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Palm Beach County SHIP Purchase Assistance Program

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Highlights

• Maximum amount up to $100,000

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is require

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America’s Home Grant® program (Bank of America) 

Program released Sept 2022

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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

• Maximum amount up to $7,500

• May be used for nonrecurring closing costs, such as title insurance and recording fees

• Client does not have to be a first-time homebuyer

• Homebuyer education is not required

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City of Boca Raton SHIP Purchase Assistance Program

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Highlights

• Maximum amount up to $90,000

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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City of Boynton Beach SHIP program

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Highlights

• Maximum amount up to $60,000

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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City of Deerfield Beach Purchase Assistance Program

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Highlights

• Maximum amount up to $50,000

• May be used for down payment and/or closing costs

• Client does not have to be a first-time homebuyer

• Homebuyer education is required

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City of Fort Lauderdale Purchase Assistance Program

954-828-4527

Highlights

• Maximum amount up to $75,000

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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City of Lauderdale Lakes Purchase Assistance Programs

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Highlights

• Maximum amount up to $25,000

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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City of Lauderhill Purchase Assistance FTHB Program (SHIP Funds)

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City of Lauderhill

Highlights

• Maximum amount up to $50,000

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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City of Miami First Time Homebuyer Program

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Highlights

• Maximum amount to be determined by Provider

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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Miami-Dade Economic Advocacy Trust - Homeownership Assistance Program HAP

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Highlights

• Maximum amount up to $12,250

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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City of Miami Gardens Purchase Assistance Program

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Highlights

• Maximum amount up to $20,000

• May be used for down payment and/or closing costs

• Client must be a first-time homebuyer

• Homebuyer education is required

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Home repair grant funds available to low-income Port St Lucie residents

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Highlights

• Maximum amount up to $50,000

• May be used for home repairs for income eligible homeowners

• Home value of 358 or less

• 0% interest deferred payment loans (DPL), meaning no monthly payments are due.

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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!