Downpayment not necessary...I'm not kidding

By
Mortgage and Lending with Christensen Financial Mortgage 385907

So you want to buy a home in Cape Coral? How much of a downpayment is required?

If it's a primary residence often... NONE

How about Ft. Myers?

Same situation, same deal...None

If you're purchasing a home in Southwest Florida there may be programs availble that do not require a Downpayment.

Here's some examples

First, and always FIRST!

VA

qualified Veterans can purchase a primary residence with no downpayment and the seller can pay their closing costs. The maximum mortgage amount would be $417,000 and the interest rates are very good.

USDA/Rural Housing

rural housing loans offer 100% financing in many parts of Southwest Florida. There are property eligibility restrictions, that being property loacation. BEWARE; rural housing is not for strictly for rural areas. It is available wherever the USDA feels it is needed.

For Example: all of Collier County is eligible. And there are few, if any, cows grazing in the city of Naples

there are some income restictions, but they are actually more accomodating than one might think.

Florida Housing Finance Corp/Florida Bond

this program is very much underutilzed, in my opinion. The Florida Bond program offers downpayment and closing cost assistance to qualified buyers. It does have income restictions, however, the restrictions are very reasonable especially the HAMI.

there are two types:

Florida Assist; offers borrowers up to $7500 to assist with downpayment and closing costs. This is a deferred, non-amortizing, 0% interest, second mortgage that is repayable when borrowers sell or refinance the property, satisfy the first mortgage, or no longer occupy the property as their primary residence.

Home Ownership Assistance for Moderate Income Loan; the HAMI offers borrowers up to $5,000 to assist with downpayment and closing costs. This is a fixed rate, 10 year amortizing, second mortgage that is repaid on a monthly basis. ( currently the monthly payment is about $50.00)

the reason I say that this program is underutilized is because most lenders do not participate in the program. Frankly, the profit margins are low. For some of us it's time to give back to the industry, do some good so to speak.

I know smiley, up there in the right hand corner is both certified, and willing to assist any/all buyers who desire to utilize this program.    

Okay so you want to buy a home in Lee, Collier, and/or Charlotte County, and you may have some, but limited cash resources. That may not necessarily keep you from purchasing a home for your family because in many cases a

Downpayment (is) not necessary

I'm not kidding!  

 

Comments (2)

Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Jay. It has been years since I heard this. In my area VA is still popular but significant escrows are required.

Jul 23, 2012 11:30 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Sheila,

I'm not sure what you mean by significant escrows? do you mean aside from taxes/ins.

it's amazing how many people in our industry are proudly waving the flag, but turning their backs on Veterans wanting to use their eligibility.

time to change that, don't you think?

thanks,

jay 

Jul 23, 2012 11:54 PM