Thinking about buying your first home? The historically low mortgage rates combined with programs designed specifically to aid first-time homebuyers can put your dreams within reach! First-time homebuyers in Florida can benefit from a variety of national and state-specific programs designed to assist you.
With many programs to choose from, it’s important to seek the advice of an experienced Mortgage Banker. Reach out to one of our Mortgage Bankers today and learn more about the options available to you!
Resource Financial Services also provides all eligible homebuyers with a cash reward of 0.5% of the value of the property purchased when they work with one of our recommended real estate agents and find their homes on our search platform. Search homes now.
First-time Homebuyer Programs Specific to Florida
The Florida Housing Finance Corporation (Florida Housing) was created with the goal of providing a range of affordable housing opportunities for Florida residents. In order to accomplish this mission, they work alongside local government agencies, non-profit organizations, elected officials, and others to help spread the importance of affordable housing in Florida’s communities.
- 3%, 4% and 5% HFA Preferred and HFA Advantage PLUS Second Mortgage. Borrowers utilizing the Florida HFA Preferred Conventional Loan or the HFA Advantage receive 3%, 4%, or 5% of the total loan amount in a forgivable second mortgage. This second mortgage is forgiven at 20% a year over its 5-year term.
- The Florida Homeownership Loan Program (FL HLP) Second Mortgage. This program offers a 3% fully-amortizing, second mortgage, of up to $10,000, and a 15-year term. The program has a monthly payment and the remaining unpaid principal balance (UPB) is deferred, unless the homeowner decides to sell, transfer the deed, refinance, repay the full mortgage, or move. Since the FL HLP Second Mortgage carries a monthly payment, this payment may need to be considered in a borrower’s debt-to-income ratio when credit underwriting.
- Florida Assist Second Mortgage. The Florida Assist Second Mortgage is an assistance program that helps homeowners with their down payment. It allows qualified borrowers to receive up to $7,500. Payments are only due when the homeowner moves out, sells the property, refinances, or pays off the original mortgage, as it has deferred payments with a 0% interest rate.
- Salute Our Soldiers Loan Program. The Salute Our Soldiers Loan Program is available to qualified veterans and active-duty military personnel. It provides borrowers with a 30-year fixed-rate mortgage loan, offering lower interest rates. This program can also be combined with several down payment assistance options.
- Florida Mortgage Credit Certificate (MCC) Program. The Florida Mortgage Credit Certificate Program provides eligible first-time homebuyers and veterans with a credit on federal taxes. Qualified borrowers may claim up to 50% of their paid mortgage interest, up to a maximum of $2,000 per year that they occupy the property.
National First-time Homebuyer Programs
There are several national loan options available to first-time homebuyers in Florida.
- Conventional Mortgage. The conventional mortgage loan provides eligible first-time homebuyers with the possibility of a down payment as low as 3%. However, if the homebuyer is able to make a down payment of at least 20%, they will not have to pay mortgage insurance.
- USDA Loan. The USDA loan was developed by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program with the goal of making rural suburban housing more affordable. Qualified homebuyers have to meet income limitations that vary by area, while properties also have to meet certain standards.
- FHA Loan. The Federal Housing Administration loan is especially beneficial for first-time homebuyers with low credit scores. Homebuyers with credit scores of at least 580 are able to have a down payment as low as 3.5%. The program also offers options for homebuyers with credit scores as low as 500, however, at this level, it will require a down payment of at least 10%.
- VA Loan. The VA loan is guaranteed by the U.S. Department of Veterans Affairs and is available to military members, veterans, and surviving spouses. The benefits of this program include no minimum credit score, no down payment, and no mortgage insurance. To thank military families for their service, Resource Financial makes the VA Loan program even better by charging no lender fees.
Interested in one of these programs? Reach out to one of our Mortgage Bankers. We will help you choose the best option for you and your family and answer any questions you may have!