With increases in the cost of housing over the past three decades, it’s still the American dream to own your home for about 80% of the population. The increasing value of land and building materials, makes it challenging for even middle-income Americans to own their home.
Although there are increases in wages and decreases in mortgage rates, it seems as if 70% of Americans are not able to acquire a home in the locations they desire.
We highlight locations because as an example, in some cases, the same individual that cannot afford a home in an overpriced area like San Diego, could buy a big, beautiful home in Arizona. Location matters for the real estate and location matters for buyer preference.
Jacksonville County in Florida is also in the 70% list. There are several real estate companies that provide services regarding the smooth process of attaining homeownership.
If you’re buying a house for the first time, you need to know how effectively you can go through the home purchasing process. We have collected a list of programs available for first-time homebuyers in Florida, which they can get benefit from. Some of the programs available are;
FHA Down payments
Popular among first-time home buyers, the Federal Housing Authority assists with down payments. The loan comes with a down payment requirement of 3.5% with a FICO score of 580. FICO score shows the potential worth of the home buyer.
Eligibility:
- FICO scores of 620 or above get better loan opportunities with lower interest rates.
- First-time home buyer. A civil servant federal worker or health care administrator can also apply.
Home Sweet Home Hillsborough Program
The Hillsborough County offers financial assistance for first-time home buyers to buy their first home in locations that have been preapproved either locally of through opportunity zones. This homebuyer assistance program helps individuals reach the American dream of buying a home. Additionally, with this program, it can be done without the burden of heavy down payment and with the assistance of a 30-years second mortgage.
Eligibility:
- First-time home buyer
- Permanent resident of the US.
- Complete a home-buyer education course with FICO score of 600.
HFA Miami-Dade Mortgage Program
To reduce the burden of down payment HFA Miami-Dade Mortgage Program offers a first mortgage as well as down payment assistance for first-time home buyers. The mortgage is offered for 30 years’ period with up to $10,000 in down payment assistance.
Eligibility:
- Permanent resident of the US with a FICO score of 640.
- Must be working in the same job for 2 years.
FirstPlus Program
Serving on a first-come, first-served basis, the program offers first-time homebuyers assistance in down payment and closing costs. The first-time home buyer receives a second mortgage of $10,000 with the FirstPlus program. It has zero-interest-rate with a term of 30-years. Potential applicants for the programs include first-time homebuyers or those who have not owned a house in the state in the last three years and permanent residents of the US.
Eligibility:
- First-time homebuyer.
- Buyers not owned houses in the last three years.
- Meet maximum income requirement and FICO score 640 or higher.
State Housing Initiatives Partnership Program
Financed by Charlotte County Government, it offers assistance for down payments to first-time home buyers. It provides 10% of the down payment as financial assistance with a zero-interest loans. You have to repay the full amount of the loan if the property is sold, placed on rent or the owner buys a new home.
Eligibility:
- First-time home buyer.
- Haven’t purchased a home in the last three years.
- First mortgage debt-to-income ratio no higher than 30%.
- Debt-to-income ratio no higher than 40%.
- Borrowers contribute $500 from their funds for the down payments.
- Income limit lies in the range $30,550 – $50,600.
Tax implications
If you are buying a home in Florida for the first time, be aware that after purchasing property, your property comes under the Florida property tax laws. The County assesses all owned properties as of January 1st and sends notice of proposed property tax in August.
The tax is the value obtained by subtracting the assessed value of the property minus the exemptions. But the good news is that you can get exemptions on the property up to $50,000. Call your local Realtor to learn more about your options.