With the soaring home prices seen nationally and rising interest rates, many homebuyers are worried that they may not be able to afford the new norm for monthly payments, or what these rising prices will mean for their down payment. Higher valued home = higher down payment. Many buyers struggle to come up with the cash necessary to provide a down payment and pay necessary closing costs. Finally, however, there is some good news for homebuyers! According to the Florida Housing Finance Corporation, there are many options available for down payment assistance in the state of Florida. The problem, according to the agency, is that many homebuyers are completely unaware of their existence.
Every state in the country has a housing finance agency with programs available to help people afford to be able to buy a home. In fact, Florida has multiple avenues to provide down payment assistance via the Florida Housing Finance Corporation. The caveat? The loans come in the form of a second loan, and in order to qualify the first loan must also come from Florida Housing.
The Florida Assist program offers up to $10,000 on mortgage loans, with 0% interest, as a second mortgage. This program is non-forgivable, with repayment deferred until the satisfaction of the mortgage or a sale, at which point the loan becomes due in full. Another option is the Florida Homeownership Loan Program Second Mortgage. This program also offers $10,000, but as a fully amortizing second loan with a 3% interest rate and a 15 year term. This program requires a monthly payment on the loan. A third option available is the 3% 4% 5% HFA Preferred Second Mortgage. This option allows the borrower to receive a forgivable loan of up to 3%, 4%, or 5% of the total mortgage amount. The loan becomes 20% forgiven each year for 5 years - but only if the first mortgage is provided by Florida Housing as well. For more information on programs available to assist homebuyers with down payments and closing costs, check out the Florida Housing Finance Corporation.
The dream of homeownership should not come down to having to come up with thousands out of pocket for a down payment or the cost of closing on the property. Many give up the dream when they realize they cannot, or will not, provide it. Luckily, there is help out there - you just need to know where to find it! At Broker’s Edge, our Florida Keys real estate experts can point you in the right direction to help you make your dream of owning your own home a reality!