What programs are available for downpayment assistance?

Asked by Diane, Sarasota, FL Mon Jul 20, 2009

I make 30K and am a first time homebuyer.

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Debbie Judge, , Sarasota, FL
Wed Aug 5, 2009
Hi Diane! The best thing you could do is to contact a mortgage professional. They take into consideration your "whole financial picture" and can advise you regarding downpayment assistance. An additional benefit is that a mortgage pro can give you ideas on getting help from the seller, getting your interest rate lowered, etc.
0 votes
Randy Schwei…, , Sarasota, FL
Tue Jul 21, 2009
Hi Diane,
The timing is great for you to consider buying a home. Low interest rates, $8,000 tax credit for 1st time homebuyer program, and a reasonable inventory of homes for which you would qualify. In many cases, todays prices are equal to the 2000-2002 time period. After 3 months of increasing sales and pending sales, sales activity is approaching the the 2005 period.

As one mentioned, I would suggest you go through the process of a a pre-approval with a lender or mortgage broker who can best explain in our market all aspects of your question. If you work with a national firm like Coldwell Banker, we have an in-house affiliate, Sunbelt Lending, where you can apply online, by email, or over the phone.

Downpayment Assistance----Assuming you are looking a single family residence, you can find out if you qualify for either VA or FHA financing. The latter as mentioned is 3 1/2% down. VA is 0% down. Neither of these programs are available for the purchase of a condo, townhouse, or villa unfortunately. The $8,000 Obama tax credit is the major incentive for buyers today, since it doesn't have to be repaid if you hold your new home for 3 years. You would receive a total refund of your taxes due and deducting that from the $8k, the IRS would issue you a check for the difference. Since May 2009, in many states you can apply for an advance loan equaling the $8k;however, I would need to research in our area which non-profit government agency you would contact. That is one of the main reason, I suggest speaking to a lender to clarify.

Other Options for Your Downpayment----A buyer has closing costs to consider as well as perhaps a minimum of 3 1/2% down. (lender or a good realtor can itemize and estimate for you). Now your buyer agent realtor should discuss the option of asking the seller or perhaps the bank to contribute up to 6% of the contract price to you at close.

Reason to Act Soon----at the moment, the $8k credit expires Nov 30, 2009. Once you and a seller have a signed contract, it is more common today to take 30-45 days because of significant increase in activity and delays getting appraisals. Over 50% of our sales today are short sales or REO (bank-owned). Buyers and agents often are afraid of short sales, but there are excellent values to choose from. Banks are getting better and my last 3 short sales closed in less than 3 months; but remember you have to close before November 30. This is why it is critical to interview or find a well-trained short sale/REO realtor who has lots of experience in the area as well as obtaining answers to your questions.

I wish you the best in your search for a dream home. When one considers that home ownership is often approximately the same as today's rents before tax benefits, it is an excellent time to be looking. If I can help, please feel free to contact me.

Randy Schweitzer, Coldwell Banker, Downtown Sarasota
0 votes
David Levent…, , Sarasota, FL
Tue Jul 21, 2009
Diane
FHA has available to get buyer's up to 6% from seller to help and the list goes on. Talk to a lender, if you need one let me know and will pass you on to serveral, but start w/your local bank you deal with, people you already trust. Any good lender can work with you and help you go over everything, also, make sure you get pre-approved 1st it really helps in the process and moves it along alot quicker when you do find a home you like
David Leventhal
The Leventhal team
0 votes
Bob Bronston, Agent, Lakewood Ranch, FL
Mon Jul 20, 2009
Hi Diane,
The most significant program for first time buyers right now is the government tax credit of up to $8000. You can see information on the tax credit at:
http://www.federalhousingtaxcredit.com/2009/index.html

You can also find some information on programs in Florida at:
http://www.floridahousing.org/Home/HomebuyersRenters/default.htm

If you haven't talked with a lender yet, that should be your next step. There are FHA loans that require 3.5% down but there are still programs that allow up to 100% financing under certain circumstances. Your credit scores will impact the rate they give you.

If you don't have a lender you feel comfortable talking with, please feel free to contact me and I will give you a few names and numbers of people I know.
Web Reference:  http://www.BobBronston.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more