If you are looking for a down payment assistance program in Florida you are probably a first-time home buyer. Being a first-time buyer means that you shouldn’t have owned a house in the past 3 years. There are several agencies state-wide which offer this type of loan and you should choose the one which offers the best terms for your situation – but remember that you also need to meet the requirements (which vary from one program to another). So here are a couple of the best Florida down payment assistance programs.
The Housing Finance Authority (HFA) gives out loans of up to $10,000 which you can use as a down payment for your mortgage. There is a wide range of requirements, but the key ones are that the ratio of debt to income should be less than 45%, you should have a credit score of at least 640 and the program is limited to a fixed period of 30 years.The Florida First Time Home Buyer program (FTHB) is very similar with the HFA, both in terms of down payment offered, debt conditions and the fixed period. However, there is one important extra requirement – you won’t qualify if you’ve had either a foreclosure or bankruptcy in the past 3 years.
So what should your thought process be when choosing the down payment assistance program? Make sure that you examine the full list of requirements and conditions before you apply. Every person has a different set of circumstances, income sources, and future plans so take that into account when making your choice. Go for the best deal you can get, minimize your risk for extra fees and be realistic when planning your repayment.
30 years (which is the typically a fixed repayment period) is plenty of time to repay $10,000, but make sure you plan accordingly and avoid any kind of penalties. You can best do this by making sure that you spend enough time researching all the available Florida down payment assistance programs and avoid making uninformed decisions. Taking these steps is often enough to guarantee a successful application.
Below is a list of Florida Down Payment Assistance Programs:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
Florida Down Payment Assistance Programs
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
Florida Housing Agencies
Florida housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.
- Alachua County Housing Authority
- Avon Park Housing Authority
- Broward County Housing Authority
- Bradenton Housing Authority
- Crestview Housing Authority
- Miami-Dade Housing Agency
- Deerfield Beach Housing Authority
- Florida Association of Housing and Redevelopment Officials
- Florida Housing Authority
- Fort Myers Housing Authority
- Housing Authority of the City of Fort Lauderdale
- Housing Authority of the City of Miami Beach
- Hollywood Housing Authority
- Lakeland Housing Authority
- Orange County Housing Finance Authority
- Orlando Housing Authority
- Pinellas County Housing Authority
- Punta Gorda Housing Authority
- Sarasota Housing Authority
- St. Petersburg Housing Authority
- Tallahassee Housing Authority
- West Palm Beach Housing Authority