Traditional mortgage lenders have not made it easy for first-time buyers to climb the property ladder, especially if they are on a low to moderate income. The 20% down payment required on a home purchase can seem impossible when the average US house price is around $400,000.
The good news, however, is that this problem has been recognized. Down payment assistance (DPA) programs are available, and you can receive a significant amount of help if you know where to look.
If you have been agonizing over the prospect of never owning a home, there is hope on the horizon. Let Compass Mortgage show you some of the down payment assistance programs in Palm City, FL and let you know how you can qualify for them.
There are four main types of DPA. Which one you qualify for will depend on your personal circumstances:
Grants tend to be the most common form of DPA. Also consider, the loans you receive may be interest-free, have an interest percentage lower than your primary mortgage, or have higher rates, which is determined at the application stage.
If you would like to take advantage of a down payment assistance loan or grant, you must first fulfill certain criteria. They vary depending on your zip code, but most of them depend on the following:
If you are looking to buy in a targeted area, then you are more likely to be approved, and you may receive more money as well. Targeted areas are federally recognized locations where economic growth needs to be stimulated. Therefore, homeownership is encouraged, and made easier in these places.
How much you receive for your Down Payment Assistance (DPA) loan in the Palm City, FL area very much depends on where you intend to buy a home. It can range from absolutely nothing, to several thousand-dollar grants that never have to be paid back.
There are also many variables that affect the total amount available, so it is not possible to give an exact figure.
It is also worth noting that some DPA loans and grants can be used for closing costs, as well as the down payment. Others may not allow it.
All Palm City, FL home loan down payment assistance programs stipulate that your mortgage must be borrowed from an approved lender, such as Compass Mortgage. They may also stipulate that you must sign up for a specific type of mortgage. However, most DPAs will let you take the following loan programs:
If you intend to purchase a home near Palm City, the good news is that there are three types of DPA programs available to you. These are granted by the Florida Housing Finance Corporation:
Contact an approved mortgage lender to understand what types of DPA programs are available in your area. If you intend to move to a different area, contact your local mortgage lender to let them know. They will have the local knowledge to help you understand what help is available.
For the Palm City, FL area, contact our team at Compass Mortgage. We can provide you in-depth information about the types of help available according to your personal circumstances. We are an approved lender and offer all mortgages that are complementary to the DPA programs. Stepping onto the property ladder has never been easier. Call our mortgage loan team today to find out more.