Down Payment Assistance Program
Down payment assistance programs can be administered by a local or state housing authority, a nonprofit organization or directly through your lender. They provide a set amount of money to qualified homebuyers. Homebuyers can use the money to cover their down payment or closing costs.
The money you receive through the program may be considered one of three things: a grant, an interest-free loan or a debt you pay off in the future. Typically, you’ll have to agree to live in the home and use it as your principal residence for a certain period of time to avoid having to repay the money. If your down payment assistance is treated as a loan, it would have to be paid in full if you sold the property or finished making all of your mortgage payments.
Who’s Eligible for Down Payment Assistance?
Not everyone will qualify for down payment assistance and each state has its own rules for determining eligibility. Generally, it’s based on your income and how much home you’re buying. In Virginia, for example, your earnings have to be at or below 80% of the area median income where you’re planning to buy. In other states, the limit may be as high as 120%.
Many of these programs are limited to first-time buyers. If you’ve owned a home previously, you might not be able to qualify. In some cases, homebuyers also have to attend special training where they learn about the mortgage process and the financial responsibilities that go along with owning a home.
How Much Funding Is Available?
The amount of money you can get through a down payment assistance program depends on the state that’s administering the funds. Some states base your award on the home’s sales price while others offer a flat amount. In Virginia, for instance, the amount can go as high as 20% of the purchase price. New York, on the other hand, caps assistance at $15,000.
Does Your Credit Matter?
Down payment assistance programs are designed to help homebuyers who might otherwise be shut out of the market. Anyone who has already been preapproved for a mortgage can qualify for aid. During the preapproval process, the lender will go over your income, expenses and credit history. This will help the lender determine how much of a credit risk you are.
If your credit’s not in the best shape, it’s a good idea to work on improving it. Ideally, you’d do that before seeking pre-approval or applying for down payment assistance. The best way to do so is to pay all of your bills on time. Late payments can be extremely damaging to your score. You’ll also benefit from paying down your existing debts and limiting your applications for new debt until you’re able to get pre-approved.
If you need help getting your finances in tip-top shapes before buying a home, you might benefit from working with a financial advisor. A financial advisor can help you determine your long-term goals and come up with a financial plan to achieve them. I MaraiD Lending we have the expert that can help you to meet your needs.
First you’ll answer a series of questions about your situation and your goals. Then the program will narrow down your options to up to three advisors who suit your needs. You can then read their profiles to learn more about them, interview them on the phone or in person and choose who to work with in the future. This allows you to find a good fit while the program does much of the hard work for you.
Are you looking for assistance in buying your first home?
Homeownership can feel out of reach, especially if you’ve never purchased a home and aren’t sure whether you’ll qualify for a mortgage. That’s why the Florida Housing Finance Corporation, known as Florida Housing, offers several programs to help Floridians buy a first home. But the good news doesn’t stop there.
National mortgage programs can also help you overcome obstacles to homeownership, especially if you have a low credit score or aren’t able to save a big down payment. Learn more about all of your options for buying a home in the Sunshine State below.
Florida Housing highlights and eligibility
- 30-year fixed-rate mortgages for first-time home buyers, veterans and active military
- Available in all 67 of Florida’s counties
- Can be combined with down payment or closing cost assistance programs
- Mortgage interest tax credit available
- Property must be located in Florida and be a primary residence
- Borrowers must meet income, credit and purchase price requirements
- Home buyer education course required
- Additional program-specific requirements may apply
Some of the Programas are:
1- Florida Housing first-time home buyer loan programs and grants
If you’re a first-time home buyer — typically someone who hasn’t owned a home in the past three years — Florida Housing programs may provide an affordable path to owning a home. Qualified veterans and anyone considering a home purchase in one of Florida’s federally designated target areas may also be able to take advantage of the programs. Designated by the U.S. Department of Housing and Urban Development, a targeted area is a neighborhood, street or block where at least 70% of households earn 80% or less of the state median income.
The assistance program allows qualified applicants to borrow up to $7,500 for their down payment. The Florida Assist second mortgage is offered at 0% interest, and payments are deferred, meaning the loan doesn’t have to be repaid until you move out, sell the house, refinance or pay off the original mortgage.
2- Homeownership Assistance Program (Miami-Dade County)
Provided through the Miami-Dade Advocacy Trust, this grant program gives first-time home buyers up to $7,250 for down payment and closing costs, depending on their income. The funds are provided as a no-interest, no-payment loan that’s forgiven after 10 years as long as the borrower still occupies the home and has not done a cash-out refinance.
In addition to meeting other eligibility requirements, applicants must be residents of Miami-Dade County, contribute some of their own money toward the purchase and work with an approved mortgage lender.
What is your next step? Contact to one of our loan expert to check if you qualify for a program and for what programs you qualify: Contact@MaraidLending.com
3- First-Time Home Buyer Program (Hallandale Beach)
Offered through the Hallandale Beach Community Redevelopment Agency, this program provides first-time home buyers with up to $50,000 in down payment and closing cost assistance.
Funds are provided in the form of a no-interest loan that can be forgiven if the house is the borrower’s primary residence for at least 10 years. In addition to other eligibility requirements, applicants must contribute $2,000 toward the down payment.
4- Home Purchase Assistance Program (West Palm Beach)
Administered by the West Palm Beach Department of Housing and Community Development, this grant program makes available up to $60,000 of down payment and closing cost assistance, depending on income.
Assistance is provided in the form of a no-interest, deferred-payment loan. No repayment is required as long as the borrower owns and occupies the home for a set period of time determined by the assistance amount. In addition to other eligibility requirements, applicants must contribute at least 1.75% of the home’s purchase price toward a down payment. Only properties within the city limits of West Palm Beach are allowed.
Not all counties have the same assistance programs. Not all banks use these programs. Some banks have their own first-buyer assistance programs. Banks can usually take out new assistance programs for first-time home buyers and withdraw the ones they have.
To find out more about these programs call us today- 305-742-81798 and one of our experts can check which programs are available when you call and if you qualify for those programs. Or just send us an email Contact@MaraidLending.com