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If you are a first
time home buyer*, this information is vital to your home purchase. Please
read this carefully.
*a person that has not owned a home in the last 36
months The first thing you know about buying a home and getting a mortgage
is that down payment and closing costs are separate costs.
First time home buyers often confuse the two.
- A down payment is a percentage of the purchase price required at
closing to obtain the mortgage. For example, an FHA loan requires
3.5% down payment to get the loan. This amount can be a gift
from a family member or down payment assistance. Consult with
us about gift funds before accepting any money. If it's not
documented properly it could ruin your loan qualification.
There are special loans still available that do not require a down
payment (100% Financing) but the home must be located in an approved
area. Contact us at 813-690-4125 about the areas that are
approved.
- Closing costs are fees associated with the purchase of the home,
such as, title insurance, lender underwriting, taxes, and escrows
(pre-paid property tax and insurance) to name a few. Sometimes
the home seller will contribute toward some or all of these fees.
These fees range from 3 to 6% of the purchase price. We can
provide you an estimate of these costs.
Secondly, buyers must understand that down payment assistance is not
for people with poor or bad credit. It is for people who have
moderate to excellent credit. In most cases, a minimum of a 620 credit
score is required.
Lastly, buying a home requires some out-of-pocket expenses
prior to obtaining and closing the loan that are not part of the down
payment or closing costs. These fees include: a deposit on your
purchase contract
(usually 1% of the purchase price with a minimum of $500), a $300 - $350
home inspection (not legally required but highly recommended), and a
$300 - $350 appraisal required by the lender to determine the market
value of the home. You will need a minimum of $1200 to start the
process. Plus, some loans require a minimum of two months
payments, taxes and insurance to be left in savings after the loan
closes (monies held in IRA or 401K satisfy this requirement).
When we qualify you, we will be able to tell you if this will be required for
your loan program.
As a First Time Home Buyer you may be eligible to receive $5000 or
$10,000 for down payment assistance and in some cases, you may
qualify for home purchase money from S.H.I.P** paying up to $60,000 toward a home purchase.
As you can imagine, the $60,000 down payment assistance from SHIP is in
high demand, therefore, is difficult to get due to limited county funds.
We can guide you through the process of submitting your application for
an opportunity to receive these funds. All of these funds have
income limits depending on the number of persons in your household.
We can calculate what the income limit will be for your family.
**The SHIP program funds
are usually released in the spring. You must have your home buyer
education completed and be prequalified by an approved lender in order
to reserve your funds on the release date. The years allocated
funds are usually consumed the first day so don't delay!
CALL US
TODAY to get started! 813-690-4125.
Here you will find
information on
three government programs: The Florida Assist Program,
HAMI (Homeownership Assistance for Moderate Income),
and SHIP
Program (State Housing Initiative Partnership).
We have provided information on these programs below, however, due to
changes in program guidelines, you should not rely on this information.
Contact us for help with these down payment
assistance programs.
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