Orlando First Time Home Buyer Programs
How to Buy a Home in Orlando with No Money Down?
Everyone wants to purchase a home in the Orlando vicinity with zero payment.
Here’s exactly how you can buy a home with no money down!
The major issue most first time buyers have to face is not selecting the appropriate home, and having to gather a large down payment. Lending practices which are conventional needs a large down payment which range from 10% to 20% of the purchase price. In addition to that, the normal 3% in closing costs and a majority of the first-time buyers find themselves unable to purchase because they are a shortage of funds. There are a lot of first-time homebuyer programs which are available and need as low as 3% down and some even have 100% financing without any down payment needed. Therefore, shopping for the right program and the right home with the right realtor can get you results.
Most times, these loan programs stay under the radar because they are more tedious for the mortgage broker to process than the usual conventional loans. Much harder means more work and majority of the lenders would rather do the easy path and with less work. Some lenders work precisely with people who are buying a home for the first time and enjoy aiding them to become homeowners. Selecting the proper lender is a huge decision to interview at least three of them before you make a decision and if a referral is needed, we can also provide the names of some renowned Orlando area, first time home buyer lenders.
Some of the options that can be found in the Orlando area for first time home buyers are listed below, who are ready to purchase their first home or may just have a little cash difference on their closing costs and down payments.
Option 1: FHA Loans
These are mortgages which are federally subsidized and provide first time home buyers with the opportunity to own their first home. This program does not need a minimum down payment, but different from the conventional 10-20% it is only 3%. This is an important saving and can push you closer to the home of your dream.
The FHA loans can be qualified for with ease and also let the money utilized for closing costs and down payment to be passed to you as gifts to you by a member of your family, friend and sometimes a charitable organization.
Option 2: SHIP Assistance
This is a program that is uniquely created to assist the first time home buyers in attaining their dream of owning a home in the state of Florida. Every county is given a specific amount of funds every year and they are shared on a first come first serve basis to applicants who are qualified.
The amount received can be higher than $25,000 on home purchases that are approved can be a tremendous resource for first-time buyers. The assistance arrives in the form of an interest-free loan that payments are not made on instead it is paid in full either when you choose to sell your home, the home is no more your principal residence or the home is paid for.
There are specific criteria that must be met by a borrower to have qualification for these funds, and your financing must be in place before SHIP funding is requested for so be certain to speak to your mortgage broker or real estate agent if the funding is something you require.
Option 3: USDA Financing
Changes were made by the USDA in 2009 to their 100 percent financing loan option that now makes the mortgage available to millions more first time home buyers.
This is a remarkable option for people who want to purchase but do not have the money needed for a down payment. This loan needs No down payment what so ever at 100 percent financing. The homes that will qualify have some restrictions placed on them, so be certain to check with your lender and real estate agent to be certain.
Option 4: Specialized Loans (Community Development Loans)
If you are a firefighter, teacher, military personal or a policeman who is on the lookout to purchase your first home, then you may be qualified for some loan options that are very interesting. A majority of these programs provide lower closing cost fees, lower down payment, 100percent no money down financing and discounted interest rates.
Teachers are also offered a loan to aid in their down payment by the Florida’s Extra Credit Teacher Home Purchase Program. These loans which are specialized are basically to qualify for than basic loans which allow credit scores which are lower and have lower requirements for income. They, however, have some regulations that you must support for the loan terms to be accepted.
Option 5: Neighbourhood Stabilization Program
This program was produced by the federal government as a response to the elevating foreclosures and isolated properties. To minimize the negative impact created by these conditions in communities, the state of Florida has accepted to utilize part of these funds in the form of down payment assistance to home buyers.
The highest amount of assistance that is available is $35,000. Additionally, all your closing costs will be covered by the country. This is a great option for anybody who hopes to purchase a home this year because it is not limited to first-time home buyers. Because only specific areas and specific homes are qualified so be certain to allow your realtor know that this is something that you have interest in and they can help in identifying homes for sale in the areas that were designated.
Now that you have five great options for purchasing a home with little or no money down, where is the best place to start?
The first step is to get pre-qualified. And the most appropriate way to get pre-qualification is to let us direct you to a mortgage agent who is committed to assisting first time home buyers as you get into the homes of your desire. We will help you identify the right homes, that will give you the best options for no money down, and walk you through the process of buying a home.