A Crash Course on What You Should Know
Purchasing a home is still the American dream to many across the country. The feeling of being stable and well grounded is one that many search and aim for. Owning a home is just a part of that process and just one piece of the end goal to stability. Having the right information before you buy is essential, knowing the common home purchasing requirements is a great place to start. However, we should always ask, how can you get there while saving as much initial investment as possible?
For many, the government provides assistance program that helps you save in either some of the cost itemized in the closing estimated HUD; or provides assistance that you can put towards your down payment. For those first-time home buyers in the Florida state, there are multiple assistance programs we have highlighted in this article below.
Currently there are two 1st mortgage convention loan programs that allow you as a home buyer to benefit from major savings in your monthly payment and closing.
- The HFA Preferred: Offers to eligible borrowers, in the place of a 0% down second mortgage, up to $7,500 down payment assistance, a fixed rate mortgage for 30 years and decreased premium mortgage insurance.
- The $7,500 2nd mortgage becomes payable in full if: the mortgage borrowers decides to no longer occupy the property. Otherwise, the $7,500 assist is deferred so long as the property is not sold, satisfied, refinanced or transferred.
- HFA Preferred Plus: provides the same benefits as stated above in “The HFA Preferred” with one exception. Instead of the $7,500 being deferred, qualifying for this program will allow you to receive a 3% GRANT that is NON_REPAYABLE. You can use this for either your down payment and/or closing cost.
- This program is very useful in boosting the available assets towards the property sale for those searching for properties over $250,000.
- This program is available to first time home buyers that go through the homebuyer education training program.
- Veteran Exceptions: If you are an active duty member or served in the military, naval or air service. And if you we not released under dishonorable circumstances, you are not required to be a first-time home buyer. In our attempt to be more informative with our veteran community, this article can provide you with additional information on veteran advantage.
- First-time Home Buyer requirements can be waived if you are purchasing in an area that is currently being targeted by the state or county for economic development.
- There is a minimum credit score requirement of 640 and above.
- There are income and purchase price limits depending on the county the property is located in.
- For the counties of Duval, Clay and St. John’s, you cannot make more than $74,060 per year for 1 to 2 people. Your household income limits for 3 or more people are capped at $77,280 for St. John’s and Duval counties while Clay county is capped at $77,250. In addition, the purchase price is capped at $371,411.
- For the counties of Hillsborough, Pasco and Pinellas, the household income limit is capped at $68,760 for 1 to 2 persons. With a max selling price capped at $310, 211.
- For the counties of Polk, Osceola and Orange, the max selling price is capped at $311,811 while the 1 to 2-person household limit is capped at $67,850
- There must be sufficient income levels to keep your debt-to-income ratio within the requirement limits. 50% is the maximum DTI that is allowed per the program.
- Additional Requirements for Non-Purchasing Spouse.
- Only the buyers that will be placed in the NOTE is the one that must be the first-time home buyer to qualify.
- Non-Purchasing spouse can also be included in the deed, without having to be considered for the first-time home buyer program to qualify.
- Your non-purchasing spouse’s income can still be considered towards the program qualifying income.
Get Approved for the $7,500 DPA Program with Kashmiri Realty
Kashmiri Realty & Property Management works with a network of financiers that will help you get through this Florida Housing assistance program. We will help you through every step along the way to get you approved and on the way to searching for your next home.
You can call us today at +1 904-553-2409 for a free consultation and pre-approvals.