Homeownership can feel overwhelming at first glance, but if you're a first time home buyer in Florida, there are a few important tips and tricks to be aware of before you think about throwing in the towel.
See if Your Income Qualifies You for Help
If you're a low or middle income family, there are a variety of government and non profit programs that are designed to help youg et into your own home and get you established in the middle class. Different mortgage and homebuyer assistance programs that are designed to reduce mortgage payments and drive down the cost of your down payments and closing costs exist all over the country and in Florida. To be eligible for most of these kinds of programs, you'll need to be a first time homebuyer, and you'll need to qualify as a low or middle income earner. The rules for makes you a low or middle income earner aren't static, and they change depending on the county and the local cost of living.
See if You qualify for an FHA Loan
If you qualify as a low or middle income earner you'll probably also qualify for an FHA loan. These types of loans are backed by the federal government, which means you won't need to put as much money down on your mortgage as you would ordinarily. A regular down payment is about 20% of the value of your new home, while an FHA down payment is as low as 3%. With this much smaller down payment, it's a lot easier for renters to break out of the rental cycle and achieve financial independence through homeownership.
Research Good Neighbor Programs
As a push to improve conditions in some low income areas, federal and local governments often work together to offer "good neighbor" programs for homebuyers. These qualify first time homebuyers who work in "good neighbor" professions to get access to more down payment assistance, closing cost assistance, and reductions in their principals. These professions include...
- Law Enforcement
- Paramedics
- Teachers
- Members of the Military
These Programs are for YOU
These kinds of programs are meant for first time homebuyers in Florida, and not for people like real estate investors somebody who just wants another house. They're designed for you, and you should apply for them if you think you'll qualify. To keep out people who aren't really looking for their first home, most of these types of programs require that people live in their new house as their primary residence for at least 5 years. Additionally, many require you to attend HUD certification classes that are designed to teach you everything you need to know to avoid any financial pitfalls associated with homeownership.
