What You Need to Know About Florida Down Payment Assistance

What You Need to Know About Florida Down Payment Assistance

When you think about getting a house, you are easily discouraged because, in a conventional mortgage, the down payment is set to 20% not to mention you need an excellent credit score to be approved. With this, you put off buying a house because you lack the funds for a down payment.

The good news is that there exist DPA (Down Payment Assistance) programs in Florida. DPA programs help those who are struggling with completing the required down payment. With DPA, homeownership is possible and accessible even for low to moderate-income families or individuals. Down payments help in Florida include the following:

National first-time homebuyer programs
There are national mortgage programs that can help you overcome the struggles of homeownership – especially if you have a low credit score or you are not able to save a hefty down payment. Here’s a list of national first-time homebuyer programs:
•    Frannie Mae and Freddie Mac
•    FHA (Federal Housing Administration) loans
•    VA (Veterans Affairs) loans
•    USDA (United States Department of Agriculture) loans

Florida first-time homebuyer loan programs
Aside from national mortgage programs, the state offers several programs that can also help people buy their first home. Here’s a list of the Florida first-time homebuyer loan programs:
• Military Heroes Government Loan Program: this is for qualified veterans and

active-duty military personnel. They can avail of 30-year fixed-rate FHA, VA and USDA loans. Borrowers can avail of lower interest rates, Florida Housing down payment, and closing cost assistance program.
• Florida HFA Preferred Conventional Loan: this program will give access to affordable mortgage insurance. Those who are eligible can benefit more by merging their loan with down payment and closing cost assistance.
• Florida HFA Preferred 3% Plus Conventional Loan: aside from the reduced cost of the mortgage insurance, borrowers can utilise the Florida Housing’s 3% down payment and closing cost grant. The good news is, it doesn’t have to be repaid.
• Florida Assist Second Mortgage: this program allows the eligible applicants to borrow up to $7,500 as down payment. The good news is it offers 0% interest. As for the payments, they are deferred. This means that you do not need to repay it until you move out or sell the house.
• HFA Preferred Grant: this program offers eligible borrowers with 3% of the home’s purchase price, which they can use as down payment or paying the closing costs. This program is a grant – it does not have to be repaid.
• Florida MCC (Mortgage Credit Certificate) Program: this program may deliver additional savings especially to eligible first-time homebuyers and veterans in the form of a credit on their federal taxes. The applicants can claim up to 50% of their paid mortgage interest up to $2,000 every year.

Now that you are introduced to some of the first-time homebuyer programs in Florida, it is time to decide the mortgage program that is best for you. If you are still unsure, it is time that you reach out directly to a lender for additional information. Also, you can visit the Florida Housing Finance Corporation website if you want the full details.