Florida Still Offers First-Time Home Buyer Programs
First-time homebuyers in Florida have access to a number of resources to help with their purchase. The Florida Housing Finance Corporation, known simply as Florida Housing, offers several down payment and closing cost assistance programs to help you buy your first home.
Florida housing programs are available to first-time homebuyers or anyone who hasn't owned and occupied a home in three years. Active military members, qualified veterans and anyone purchasing in a federally designated targeted area might also be eligible.
Orlando, Florida - Even though cash remains king to many home sellers, a range of programs exist to help first-time homebuyers with down payments and/or closing costs. In Florida, the state administers three programs through the Florida Housing Finance Corporation (FHFC).
According to FHFC, the programs operate like second loans when using one of FHFC's first-mortgage loan programs. They include:
The Florida Assist (FL Assist) offers up to $10,000 on FHA, VA, USDA and conventional loans as a 0%, non-amortizing, deferred second mortgage. The aid isn't forgivable - it must be paid back. However, the money doesn't have to be repaid until the buyer sells or transfers the home, satisfies the first mortgage, refinances or moves out.
- Up to $10,000 on FHA, VA, USDA loans and Conventional loans
- 0% Interest Rate
- Deferred second mortgage
- No monthly payments required
The Florida Homeownership Loan Program (FL HLP) Second Mortgage also offers $10,000. It works as a 3% fully-amortizing, second mortgage over a 15-year term that includes a monthly payment. The remaining unpaid principal balance (UPB) is deferred, though, unless the first-time buyer sells or transfers the deed, satisfies the first mortgage, refinances or moves. (Note: It carries a monthly payment that may need to be considered in a borrower's debt-to-income (DTI) ratio for credit underwriting).
- Up to $10,000
- 3% fully-amortizing, second mortgage
- 15-year term
3%, 4%, and 5% HFA Preferred and HFA Advantage PLUS Second Mortgage are down payment and closing cost programs that offer buyers 3%, 4% or 5% of the total loan amount in a forgivable second mortgage. The 'forgive" rate is 20% per year over its 5-year term when used with Florida Housing's conventional HFA Preferred for TBA or HFA Advantage for TBA first mortgage products. The "PLUS" Second Mortgage is available only with these conventional first mortgage products.
- 0% Interest Rate
- No payments required
Salute Our Soldiers Military Loan Program is geared toward qualified active duty and veteran military members, these programs offer 30-year, fixed-rate mortgages for government-backed loans (FHA, VA and USDA). Salute Our Soldiers offers lower rates than Florida First, but you don't have to be a first-time homebuyer to use either program. Borrowers can also combine these loans with Florida Housing down payment and closing cost assistance.
Borrower requirements:
- Available to first-time homebuyers, qualified veterans and active military members
- Must meet income, credit and purchase requirements
- Must complete a homebuyer education class
- Must be a primary residence located within the state of Florida
Other first-time homebuyer loans and programs
There are a number of national programs to help first-time homebuyers get into homes, as well. These include FHA, USDA and VA loans, as well as a handful of more specialized programs based on your mortgage lender, or whether or not you plan to renovate your new property.
Get Started
Now that you have the lowdown on what help is available to buy your first home in Florida, you're ready to take next steps. For full details on loan programs and requirements contact Ella M Taylor, REALTOR here or call 407-476-0507 so we can connect you to our preferred lenders to apply for a mortgage or learn more details about which program best meets your needs.
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