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Orlando First Time Home Buyer Programs

How to Buy a Home in Orlando With (Little or) No Money Down

Of course you want to buy a home in the Orlando area with Zero Down Payment. Who doesn`t?

Here`s exactly how you do it:

The main obstacle most first time home buyers face is not choosing the perfect home, in fact it is coming up the down payment. Conventional lending practices require hefty down payments ranging from 10%-20% of the purchase price. Add to that, the typical 3% in closing costs and many, first time home buyers, find themselves short on funds and unable to buy. But there are many first time homebuyer programs available that require as little as 3% down and some even offer 100% financing, NO down payment required!

Often these loan programs remain under the radar because, quite frankly, they are more difficult for the mortgage broker to put together than a conventional loan. More difficult means more work and most lenders would rather just take the easy, less work path. But there are lenders who work specifically with first time home buyers and enjoy helping them to become home owners. Choosing the right lender is a big decision so be sure to interview at least 3 of them before you decide and if you need a referral we can give the names of some reputable Orlando area, first time home buyer lenders.

Below are some of the options available to Orlando area first time home buyers, who are ready to buy their first home, but may be just a little short on cash for their down payment or closing costs.

Option 1: FHA Loans

FHA loans are federally subsidized mortgages that offer first time home buyers the chance at owning their first home. This program does require a minimum down payment, but as opposed to the conventional 10-20% it is only 3%. This is a significant savings comparatively and can bring you one step closer to your dream home.

FHA loans are typically easier to qualify for and also allow the money used for closing costs and down payment to be “gifted” to you by a family member, friend and in some cases even a charitable organization.

Option 2: SHIP Assistance

The state of Florida has a program specifically designed to help first time home buyers achieve their dream of owning a home.  Each county is given a certain amount of funds each year and they are distributed on a first come first serve basis to qualified applicants.

This can be a huge resource for first time home buyers as the amount received can be upward of $25,000 on approved home purchases.

This assistance comes in the form of an interest free loan that you do not make payments on. Instead it is paid off in full, when a) you choose the sell the home b) The home is paid off c) the home is no longer your primary residence.

There are certain criteria that a borrower must meet in order to qualify for these funds, and you must have your financing in place before requesting SHIP funding, so be sure to talk to your real estate agent and mortgage broker if this funding is something you desire.

Option 3: USDA Financing

In 2009 the USDA made changes to their 100% financing loan option that now makes this mortgage available to millions more first time home buyers.

This is a great option for those who want to buy but just don’t have the money available for a down payment. At 100% financing this loan requires NO down payment what so ever!

There are some restrictions on which homes will qualify, so be sure to check with your real estate agent and lender to be sure.

Option 4: Specialized Loans (Community Development Loans)

If you are a teacher, firefighter, policeman or military personal, who is looking to buy your first home then you may qualify for some very interesting loan options.  Most of these loan programs offer discounted interest rates, lower closing cost fees, lower down payment and some even offer 100%, no money down financing!

Florida’s Extra Credit Teacher Home Purchase Program also offers teachers a loan to help cover their down payment.

These specialized loans are generally easier to qualify for than conventional loans and allow for lower credit scores and have lower income requirements.  The do however have some regulations you must agree to in order to accept the loan terms.

Option 5: Neighborhood Stabilization Program

The Neighborhood Stabilization Program was created by the federal government to respond to rising foreclosures and abandoned properties. In an effort to reduce the negative impact these conditions can create in communities, the state of Florida has agreed to use part of these funds in the form of down payment assistance to home buyers.

The maximum amount of assistance available is $35,000, additionally the county will cover all of your closing costs. Because this assistance is not limited to first time home buyers, it is really a great option for anyone hoping to buy a home this year. Because only certain areas and certain homes qualify be sure to let your realtor know that this is something you are interested and they help you identify homes for sale in the designated areas.

Where To Begin

Now that you have five good options for buying a home with little or no money down, where is the best place to begin?

The first step is getting pre-qualified. And the best way to get pre-qualified is to let us refer you to a Mortgage Consultant who is dedicated to helping first time home buyers like you get into the home of your dreams.

We`ll do more than help you get financed!

Financing is only the first step in the home buying process. We are dedicated to helping you through the entire process, delivering world-class service all along the way.
We can help you find the right home, negotiate the right terms, and then make sure that you actually get to the closing table. It`s all part of our Preferred Buyers Program, which you can join for FREE! That`s right, it won`t cost you a dime!

If you`d like to know more about your financing options and would like to be part of our Preferred Buyers Program, be sure to call us today at 407-340-6458. We look forward to talking to you and to meeting you soon!

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