For those of you who are First Time Home Buyers or who haven’t owned a home in the last three years, did you know there is a program from the State of Florida which might assist you with the down payment?

It will authorize up to $10,000.00, at 0% interest for a Down Payment Assistance Mortgage Loan from Florida through Florida Housing Finance Corporation. Participants are praising the program because they are not obligated to pay back the $10,000 until they want to sell or re-locate, away from the property. “Whether it’s 8 years or 28 years, the loan is 0% Interest.

The State of Florida Down Payment Assistance Loan: What You Need To Know!

Florida has two versions of the program: One is for FHA Borrowers and the second is for Conventional Borrowers. Requirements include:

  • You must have a minimum middle credit scores 640 to qualify for either program
  • You must pay Appraisals fees when the home is appraised.
  • Caution! These special programs are only for single family units, houses. They are not for condos or trailer homes.
  • The program does not require household income limitation, but the Applicant income must qualify.
  • The programs specify that you prove you maintain a 45% debt-to-income ratio or less.
  • The seller must contribute a 3% maximum towards buyers closing costs.
  • The program will accept non-traditional credit accepted in some situation.  (Yes, you will endure some extra paperwork.)
  • A  20 day rate lock applies to the loan.

The above  eight qualifications are just the basics about Florida’s Down Payment Assistance Program; there are details to study before joining such a program or making such a loan. We invite you to check out more information at this informative source.

F.Y.I. About Down Payments

Experts tell us that the “minimum down payment requirement for an FHA loan is 3.5%. For a $100,000 sales price, the minimum down payment is $3,500.”

Today’s Trend:

Conventional loans have previously offered flexible down payment plans but the trend for the future is to increase the down payment minimums. With a good, high FICO score, you can count on a conventional loan with a 5% down payment.

We of Palm State Mortgage Company want you to realize  that the best way to collect your down-payment for a house is the old-fashioned way:  We hope you are able to save it up, month to month, until you have accrued enough savings  to make your own down-payment, without assuming another loan.

The important point here is to put down a healthy amount for your down payment.  We do not suggest that you exhaust your savings, because there might be unforeseen expenses once you move into your home, so we advise you to  have something left over from your home buying fund.

 

As always, we thank you for reading our blog, and we hope you return to find out more about the magic of the mortgage industry and what a broker like Palm State Mortgage Company can do for you and your family.