As an update to a previous article about different down payment assistance programs available to home buyers here, we wanted to share one specific to Central Florida. This particular program is called the “Florida Hardest Hit Fund Down Payment Assistance Program” and may provide up to $15,000 to homebuyers in the Central Florida area.

Florida Hardest Hit Fund Down Payment Assistance Program

This Down Payment Assistance Program is designed to provide qualified first-time homebuyers with up to $15,000 in down payment and closing costs assistance. Currently, the program is available for prospective first-time homebuyers wanting to purchase homes in these counties:

• Brevard
• Duval
• Hillsborough
• Orange
• Volusia
• Clay
• Osceola
• Pasco
• Pinellas
• Polk
• St Lucie

If you intend to purchase a home in any of those Central Florida counties listed above, the “Hardest Hit Counties No Down Payment Florida Bond Program” may get you the assistance you need to purchase a new home!

Is this Down Payment Assistance Program “Free Money?”

Yes – although there is absolutely some fine print! So make sure you understand the program, and please do not hesitate to ask questions! We will list a couple of items to note for your review.

Many have all heard the phrase “There is no such thing as a free lunch” – popularized by a number of economists such as Milton Friedman. As a result, we, as should be the case, become skeptical when we hear “free” money. So why not first review the “negatives” of this program.

Negatives of the Down Payment Assistance Program

First of all, the Down Payment Assistance Program is actually a Second Loan. Therefore, that means you will have 2 home loans on your credit report. Hence, this alone will incur some impact on your credit. Consequently, two loans also means more “closing costs” which we talk about more in this article. Also, the way the program is designed, you will want to plan on staying in that home for a minimum of five years. Finally, the program has income limits, and may require a 30 year note.

Now, from what we can see, those are the negatives of the program… and many families will see such huge benefits that these points have no real effect. Next we will review the benefits.

Benefits of the Down Payment Assistance Program

Remember Second Loan we mentioned earlier? It comes in the form of up to a $15,000 deferred loan! As a result, the second loan will not require you to make a payment, as long as you pay your first loan on time. So if you miss a payment on your first loan and go into what lenders and mortgage companies consider “default,” the second loan may require you to start making payments.

Next, that second loan has a Zero 0% interest rate! So, while your credit report will reflect two home loans, the note will cost nothing out of pocket after you close on your new home. Also, your lender will take the “closing costs” associated with this second loan right out of the second loan itself, so you should not have to pay any money out of pocket at all!

The final benefit – the note is forgiven at a rate of 20% per year! So for every year you live in your new home, and maintain that property as your “primary residence,” the loan principal will reduce by 20%! In five years, that second loan will have reduced to $0!

Summary

In conclusion, if you want to buy a home in the counties mentioned above, the Florida Hardest Hit Down Payment Assistance Program may assist. The main points of the program include:

• Up to a $15,000 Second Loan
• Deferred (No Payments)
• 0% Interest (No Cost)
• Loan Principal Reduced by 20% each year
• Completely Forgiven after Five (5) Years

The image is courtesy of Junior Simmonds with Security National Mortgage. If you have any questions, please click our “Contact Us” button, or send us a private message. In addition, you can also give Junior and his amazing team a call! Let him know who referred you please!

Junior Simmonds – 407.302.8384