First Time Homebuyer Loan Assistance Programs
Purchasing your first home is a significant milestone in life! In Florida, there are numerous programs designed to assist first-time homebuyers with their purchases. The Florida Housing Finance Corporation (FHFC) provides support for low and moderate-income borrowers across a range of mortgage products, including 30-year, fixed-rate conventional loans, Federal Housing Administration (FHA) insured loans, Veterans Affairs loans, and U.S. Department of Agriculture Rural Development mortgages.
These are just a handful of the programs FHFC offers to aid first-time homebuyers. Eligible individuals can access benefits like lower mortgage rates, down payment assistance, tax credits, and special financing options that cover both the purchase and renovation of a home.
Down Payment Assistance
Eligible buyers may qualify for down payment assistance amounting to 2.5% or 5% of the home’s purchase price. This assistance can go toward a down payment, closing costs, or other approved “pre-closing” expenses.
Do You Qualify?
To be eligible for FHFC assistance, first-time homebuyers must meet one or more of the following criteria:
- You have not owned a primary residence in the past three years.
- You are an honorably discharged veteran.
- You are purchasing a home in a designated target area.
- Income limits, debt-to-income ratios, minimum credit score requirements, and other conditions also apply, varying by the loan type. These requirements include:
- Conventional, USDA, and VA loans necessitate a credit score of 640 or higher. FHA loans require a score of 650 or higher.
- Applicants must buy a qualifying property, with limitations to two acres within a municipal corporation and five acres outside. Local health or safety codes may mandate additional acreage. Qualifying properties encompass:
- Existing homes: single-family residences, conforming condominiums, duplexes, and properties with up to four units.
- Newly built spec/nearly completed homes: one-unit single-family residences.
- Modular homes: one-unit single-family dwellings.
- Manufactured homes.
Further programs provide additional support to first-time homebuyers.
Mortgage Tax Credit
First-time homebuyers who secure an FHFC mortgage and down payment assistance may be eligible for a mortgage credit certificate, provided they meet specific income and purchase price criteria. This certificate allows for a tax credit of up to 40% of the borrower’s annual mortgage interest, usable annually for up to 30 years.
Florida Heroes Mortgage Assistance Program
FHFC’s Florida Heroes Program offers discounted mortgage rates to eligible first-time and repeat buyers who work in helping professions, including veterans and active-duty military (including surviving spouses), police, first responders, certain medical professionals, and more. Take the quiz to see if you qualify for this program.
If you’re interested in learning more about what FHFC programs have to offer, the experts at the Orlando Mortgage Company are ready to assist!