You can pull up properties you are interested in buying on COJ.net and find out what it previously sold for and how much the taxes are. This will help you determine if your taxes will be lower in the future. There is also a tax estimator on COJ.net.
Keep in mind that you are not making payments on any of your down payment assistance money and it is 0% interest. Your pre-approval sets a maximum loan amount you can afford but that does not mean that you have to purchase a home at that price. You can look for a less expensive home and your payment will be lower. If you sell or refinance your new home before living there for 15 years, then some or all of the down payment assistance will be paid back from the proceeds of the sale or refinance. Basically, that's free money, why would you consider turning it down? In additiion, you will be eligible for the IRS tax credit after closing of up to $8000. That should help you pay your house note until the property taxes are lowered.
In addition, there is a new product that you would probably qualify for that will give you up to $8000 more in down payment assistance and can be combined with the programs you have already. That would lower your payment by $50 more dollars. The FHOP money will only be available to the first 90 buyers that close on a home before the funds are exhausted, so time is of the essence. You can not register for it until you are ready to close on your new purchase.
The H2H program has a less than 1% default rate on their loans.
Have you chosen a Realtor to work with on your home purchase? If not, please feel free to contact me.
Brenda Gravitt CRS, GRI
Coral Shores Realty
The Bond program isn't so much score driven so it's a good option for some people. If your scores are good it might be worth it to skip the bond and just use the H2H money and this other program as well. There's also a 5-1 matching funds grant available. Each of these programs aren't necessarily available from the lender you are working with. Certain programs designate certain banks to administer their particular program, so it's good to talk to an agent or mortgage broker that can steer you where it'll work in your best interests. Like I said, just because the money is available to you from a certain program does not always mean it's in your best interests to use it. If you can get the seller of the property to contribute closing costs, you can use that money to buy down your rate. H2H funds can't be used for that and I'm not sure about the bond. The seller shouldn't have a problem contributing closing costs and most of them are covered by those two programs anyway, so you'd be able to use it to buy down the points. Ask your lender about this and if they look at you funny, go get another lender. Banks need to compete for your business just like everybody else and if you sense that they are not fully knowledgeable about what's going on or if they are not working in your best interest....interview another lender. Don't worry about the credit hit for pulling a report: the algorithm that is used to score you considers all inquiries of the same type as one and doesn't penalize for multiple inquires as long as they are done in a 60 day period.
A 6.25% rate is a little high, but we have no idea what your credit looks like. The thing is that the bond rates are set and when these programs were set up, it was a competitive rate. Nonetheless, look into getting closing costs from the seller to buy down the rate. Keep in mind that using the bond program will allow you to come to the closing table with minimum (maybe none) out of pocket expense. Still a pretty good deal if you ask me. If the payment is too high, consider looking at a cheaper property. Don't hesitate: there is no better time to buy a house than right now. With the $8000 stimulus from Obama, you'll be able to pay the principal and interest on your house for an entire year (or more). Think about that....you'll live in that house for the first year for free (except for taxes and insurance)!!!!!!! And you need to think about this? Grab the money and run! Good Luck!
As a follow up, there are limits/guides to many of the programs offering assitance to potential homebuyers. There are also class requirements that you have to attend for some of the financing.
Here is a link that may help you if you would rather not email....
This information was accessed from the website http://www.floridahousing.org which offers additional information. (See the First TIme Home Buyers Wizard!)
I can also get you in touch with a Wells Fargo rep that can help you with all aspects of financing assistance if you are interested!!
Can you offer a little more information? Are you a first time homebuyer as well?
Fell fre to email me your info at email@example.com. I will be happy to try to get you all of the info you need!