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If you are looking to purchase a home with little-to-no money out of pocket, we may be able to help. Florida Mortgage Corporation offers a number of 100% financing (no down payment) mortgage programs. There are many people that have good jobs and acceptable credit histories, but have not been able to save the amount of money that may be necessary for the down payment and closing costs to purchase a home.
Saving enough money to cover the required down payment and closing costs for the purchase of a home is one of the biggest hurdles that potential first time homebuyers face. One of the largest obstacles to homeownership is coming up with money to close the loan. The savings fall short of the amount needed for entry costs like a down payment, closing costs and prepaid items. These costs are often stumbling blocks for potential home buyers.
So you've found your dream home, but are having trouble finding the money for a down payment. Consider using a down-payment assistance program to help turn your dream into a reality.
Many local and state housing agencies run bond programs to generate funds to help individuals and families with a down payment. Most agencies are income sensitive, but you may be surprised by the high level of acceptable income. The income level is especially high if you have children or dependents. Some agencies also have purchase limits, but they are adjusted to the income qualifications level. FHA has no income limits on the first mortgage.
Many people think that down payment assistance is free money — most of the time it is not. Many down payment assistance programs come in the form of a second mortgage that has a low interest rate or deferred payments. Grants are funds that do not have to be paid back, but often have to be paid back if you sell your home within a certain amount of time. Other programs such as AmeriDream do not require re-payment.
Down-payment assistance is usually given in the form of a forgivable loan, not as cash outright. That means that the home buyer must live in the home for a certain period before the total loan doesn't have to be repaid. If they move in that time, they must pay a pro-rated portion back. Some groups also offer interest-free loans that must be repaid.
Eligibility rules can vary according to the particular program, but usually the buyer's household income can't exceed 80 percent of the area's median income. FHA has NO income limits on the first mortgage. Government money earmarked to encourage home buying typically flows to non-profit housing or community groups or local governmental entities to distribute to eligible home buyers. Recipients typically must first complete a seminar on home buying.
1. SHIP - State Housing Initiatives Partnership
2. CDBG - Community Development Block Grant
FHA: Florida Mortgage Corporation "accepts" the GIFT Down Payment Assistance program from AmeriDream. This would mean that your down payment and closing costs would be provided by AmeriDream. NO DOWN PAYMENT and NO CLOSING COSTS.
Contact your Florida local county government office for detailed information on the above programs and others. The borrower must apply with the local agency and qualify. Furthermore, a number of non-profit organizations also offer financial assistance.
The FIRST mortgage must be a MyCommunityMortgage, MyCommunityMortgage 40 year, MyCommunityMortgage Interest Only, Freddie Mac Home Possible 100, or Freddie Mac Home Possible 97 and FHA. None other eligible.
Columbia County SHIP - Suwannee River Economic Council, Inc.
Other Assistance Ideas:
1. Seller Concessions: Seller can pay closing costs - up to 3-6% (Negotiated by seller and buyer)
2. Gift Funds: Provided by a "family" member toward down payment or closing costs (cannot be repaid)
3. Seller Financing: Seller holds a 2nd mortgage (lowering LTV)
Underwriting guidelines differ depending upon mortgage program. The above information may only apply to certain mortgage programs, but not all.