If you need some help with your down payment for a home, check if your state, county or city has an assistance program for down payments. Florida, California, North Carolina and West Virginia are among the states offering home buying assistance to home buyers, particularly first time home buyers.
In some states that don’t have down payment assistance, check if your city offers one. There are also nonprofits or foundations that provide financial help. Check these out; you might qualify under their programs.
According to the advocacy group National Association of Independent Housing Professionals, there are about 1,000 programs nationwide that give outright grants or zero-interest or low-interest loans for down payment or closing costs to first time home buyers, particularly those with lower incomes.
California, despite its financial problems, is probably the state with the most number of housing assistance programs. For down payment help, if you’re a resident in this state, contact the California Housing Finance Agency. If you’re a teacher or employee contributing to the California State Teachers Retirement System, you can take advantage of the housing loan offered by this pension fund.
If you live in Florida, your state housing finance agency offers a down payment or closing-cost aid up to $7,500 depending on your city or county. This program is run by the State Housing Initiatives Partnership (SHIP) program. The income requirements and repayment rules vary according to policies developed by cities and counties, but generally the provisions are designed to help lower-income home buyers. Many local programs offer zero-interest loans that don’t exceed $60,000 and which are payable for up to a period of 30 years.
Florida’s housing agency also offers a 30-year mortgage loan through accredited lenders to first time home buyers and veterans. If you’re buying a home located in federally designated targeted area, you can also apply for this loan. Your FICO score must be 600 or higher.
A number of housing analysts don’t favor these down payment or closing cost assistance programs, arguing that these prospective home buyers who need down payment help are likely to default. They insist that these people should not be buying a home in the first place because their incomes are not sufficient to sustain monthly mortgage payments.
Home ownership advocates, however, push these programs, explaining that lenders have screening and underwriting policies that can filter out those who really can’t afford to make regular monthly payments. Additionally, these down payment assistance programs come with mandatory home ownership counseling and educational sessions.
If you’re considering buying a home in Tampa and thinking of taking advantage of these programs, contact Tampa4U.com realtors. They’re residents of Tampa and have been selling and buying Tampa homes and other properties for years.