If you are a Florida first time home owners looking to purchase your first home, you will generally start with one question…. what is the best home loan program available for me? You search endlessly all over the net and to try to find answers. Nearly all Naples first time home buyers want one thing.. a limited or NO money down mortgage loan solution. Below we will discuss some options and provide some clarity to the subject.
There are basically three different mortgage programs that offer limited to NO money down in Florida today. Below we will discuss:
- VA (Veterans Affairs) 100% financing home loan. This program is reserved exclusively for past and active military. So if you have not served in the military, this mortgage program is not an option. To learn more about VA loans in the Naples Collier county area, please click here.
- Down payment assistance (DPA) with the FHA home loan – some home buyers choose the available down payment assistance program that may be available through certain Florida county programs, like Collier or Lee County. FHA requires home buyers to put 3.5% down payment as a minimum. These down payment assistance programs kick in and provide the 3.5% down payment requirement. However, many of these programs require classes, re payment clauses ( you need to live in the home for a certain amount of time) and low income caps. Additional, funding for these programs can be sporadic in addition to waiting times. It really just depends on the county city program.
- 100% USDA home loan. The Florida USDA RD (US Department of Agriculture – Rural Development ) loan program is available to all qualified home buyers. You do not even need to be a first time home owner! The best part is no class is required, no waiting, etc. No pre payment penalties, secure 30 year fix rates and you can close in as little as 30 days. Is there a catch you might ask? With USDA there are two major eligibility factors that must be met. First, the home you decide to buy has to be located in a rural defined location. The good news is ALL of Collier county is currently eligible for the USDA program. Most of the east side of Lee County is also eligible. Any single family home (move in condition) is eligible as long as it’s located in the approved area, regardless of the home seller. First time buyers that have questions about the approved USDA map and location can contact us at www.FiveStarsMortgage.com or call 800-871-2636 . Income is the second major eligibility factor. The USDA 502 and Direct program has income limits that apply to all members of the household. For a household of 1-4 members – the income limits start at $74,750 per year gross income. Now this income limit increases depending on some factors like the number of dependants living in the household, disability, elderly, county, etc. The income limits for some counties that have 5+ members in the household are well above $100,000 per year. The Florida USDA income limits can be found here. Again, please contact us below if you have questions about calculating your household income. All of the general loan qualifying requirements (credit, job, debt to income) are pretty much the same the as other mortgage programs.
First time home buyers interested in learning more about USDA lender qualifying and application requirements should can take a look at the USDA page located here.
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