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For many in the first time Florida homebuyer category, the biggest obstacle is usually… wait for it… yup!  You guessed it… the down payment!

Shoot.  Even those of you reading this who are no longer home buying virgins most likely remember saying something like:

“Man, I’d like to buy a home but don’t have the money for the down payment or closing costs!”

Up until October 1st of this year, many first time homebuyers looked to Downpayment Assistance Programs (DPAs) like those offered through Nehemiah and Ameridream as a means of sourcing the funds necessary to meet FHA’s 3 percent  (now 3.5 percent) down payment requirement plus cover some if not all of their closing costs.  Though DPAs as many of us have come to know them have been suspended, there are lesser known alternatives out there.

Now, there is a lot of merited talk about the $7,500 First Time Homebuyer Income Tax Credit and the ways it can offset down payment costs, the purpose of this Florida FHA Mortgage post is to provide some insight into 6 of the most feasible down payment assistance options that do still exist:

1. Gift Funds – Family, close friends (with no financial interest), employers, and charitable organizations (with no financial interest) are acceptable donors.
2. Secured Loans – Can be collateralized by investment accounts or real property. Payments on loans against deposited funds (401K, etc.) aren’t considered in ratios.
3. Sale of Personal Property – Requires third party estimate of worth and proof of sale (car, boat, motorcycle, eBay).
4. Bridal Registry Accounts – Account is opened prior to wedding to allow family and friends to deposit cash gifts.
5. Commission from Sale – Family member, who is a licensed real estate agent and entitled to the commission from the sale, can gift commission to borrower.
6. Rent Credit – When purchasing a home currently being rented, the amount of rental payments that exceed the fair market rent can be considered part of the cash investment.

Additional details and documentation requirements apply to each source but all are legitimate and workable.   If you have further questions about any of these Florida FHA mortgage down payment assistance options, contact me for all the information.

Apply for a Florida FHA Mortgage Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL, 33884	Mobile: 863-604-3019 Fax: 888-496-0265 kevin.s@sigfunding.com http://www.floridahomeloansspecialist.com
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