Buying A Home In Florida With No Down Payment
The USDA loan program and the VA loan program allow eligible buyers to buy a house with no money. Both are available to first-time home buyers and repeat buyers alike. But they have special requirements to qualify.
Not everyone will qualify for a zero-down mortgage. But it may still be possible to buy a house without paying money down if you choose a low-down-payment mortgage and use a government grant or loan to cover your upfront costs.
For example, home buyers using gift money for their down payment need to show get a gift letter from the donor. And the lender will want to see a clear paper trail showing where the funds came from and when they were deposited in your account.
There are more than 2,000 DPA programs nationwide, with assistance available in every state. Each program has its own guidelines, though most require you to be a first-time home buyer with a low-to-moderate income.
The amount of money you could get varies by program, too. For instance, one down payment assistance loan in New York City can offer up to $100,000 for eligible buyers, while another in Arkansas tops out at $15,000.
These include loan origination fees charged by the lender along with third-party fees required to set up your home loan (things like the credit report, home appraisal, title search, and underwriting fees).
A first-time home buyer who earns less than $40,000 or less can receive a 30-year fixed-rate mortgage with a zero-percent interest rate and no down payment. Those making between $40,000 and $60,000 may be subject to down payment requirements, but fortunately, there are programs that help with that as well.
First-time homeowners can apply for a 3% or 4% Housing Financing Agency (HFA) preferred down payment grant. The grant amount is based on the purchase price of the home, and unlike loans, grants do not have to be repaid.
While income is the primary consideration of eligibility, a lack of credit history or bad credit can be a barrier to homeownership. A credit score of at least 560 is required for eligibility for most programs, but a score that low will mean a higher interest rate and perhaps a greater down payment burden.
If you live in or are moving to an area impacted by Hurricane Michael, the Hurricane Michael Recovery Loan Program provides up to $15,000 for both down payment assistance and help with closing costs. This zero-percent interest down payment assistance loan, does not require monthly payments in addition to your mortgage and has a loan forgiveness incentive after five years of ownership.
The Downpayment Toward Equity Act provides eligible first-time home buyers up to $25,000 cash for down payment on a home, closing costs on a mortgage, interest rate reductions via discount points, and other home purchase expenses.
To provide downpayment assistance to first-generation home buyers to address multi-generational inequities in access to homeownership, and narrow and ultimately close the racial homeownership gap in the United States, and for other purposes.
Eligible home buyers must not have owned a home or co-signed on a mortgage loan within the last thirty-six months. Renters who owned homes more than three years ago qualify as first-time home buyers.
The Downpayment Toward Equity Act requires home buyers to complete a government-approved homeownership education course. Courses can be completed in 90 minutes and are proven to reduce mortgage default rates.
However, if you need your cash grant now and the Downpayment Toward Equity Act bill is moving too slowly through Congress, you can use other down payment assistance programs for first-time buyers, including local tax incentives and low-rate, low-down payment mortgages.
To determine whether your household income is within tolerance for the Downpayment Toward Equity Act, use this government lookup for your area and multiply the result by 1.2. If your income is at or below that figure, you may be eligible for $25,000.
The only way to get a mortgage through the maj