8 Assistance programs you may qualify for when purchasing your home in Volusia County
#1) The Volusia County NSP Home Purchase Program.
This program is designed to help buyers purchase repaired or renovated homes located in Westside of the county: Debary, Deland, and Orange City
Eastside of the county: Edgewater, Holly Hill, New Smyrna Beach, Ormond Beach.
This assistance has to be paid back if you stop living in the house because you sell or rent the home, or if you stop living in the house, before the end of the 15 years.
If you sell or rent the home in the first 10 years you will have to pay back a portion of any profit you receive, in addition to the full amount of the assistance.
This is a great income based program especially for those who wish to stay long term in the home. This is considered a deferred payment loan with a term of 15 years at 0% interest. You will sign a Note and Mortgage for the amount of the assistance provided. The Mortgage will be recorded as a lien against your property.
To be eligible you must be a first-time homebuyer (have not owned a home within the past three years)
Have not had a foreclosure sale in the past seven years
Meet the NSP income limits
Qualify for a first mortgage with a local lender that meets NSP mortgage guidelines
Are able to contribute up to $1,500 toward the home purchase (your lender may require additional funds)
Agree to occupy the home as your primary residence for 15 years
#2 Home Buyer Assistance Program (HBA)
The home buyer assistance program is available to aid qualified households with the purchase of a home. The HBA program is funded by Volusia County through federal and state grants. Support is provided to close the gap of funds needed for a purchase and closing costs. The gap funds will be loaned by the County of Volusia to the homebuyer with a 30-year delayed loan at 0% interest.
There are some limits on the assistance such as the home must be located in Volusia County, except within the city limits of Daytona Beach, Deltona and Ponce Inlet.
Side note: Limited funds are available for purchases within the city limits of Port Orange and Oak Hill. The maximum purchase price is $153,000 for households with income that do not exceed 80% of the area Median Income (AMI) and the maximum purchase price for households with income between 81% and 125% AMI is $225,000.
The Eligibility requirements are that the applicant must secure a first mortgage in the maximum amount for which they can afford with a fixed interest rate and no pre-payment penalty. Also, the applicant must not have owned a home within the last three years or defaulted on a mortgage within the last seven years. The buyer’s total gross income must not exceed the limits based on family size which you can see on the websites income chart. Finally, the applicant must contribute a minimum dollar amount towards the down payment of the home according to the programs income schedule.
#3 2018 Conventional Preferred Plus Down Payment Assistance
This is a programs that can be used anywhere in Florida. It allows for a higher borrower income limit and is good for first time home buyer which means (someone who hasn't owned a primary residence in past 3 years)
The buyer will receive a 30-year, fixed-rate first mortgage loan that is originated by approved lenders throughout Florida.
To qualify you as an eligible buyer you must have a credit score of 680 minimum for 95% Loan To Value or less - 700 credit score required for 95%-97% LTV and Maximum LTV 97%- 105% CLTV
If approved you will receive 3% of the purchase price as a grant that does not require repayment by the borrower, that’s you! The money can be used for down payment, Buyers mortgage closing costs, "split pay" mortgage insurance premiums to lower mortgage insurance cost or pay mortgage insurance completely off.
You will not receive any cash back at closing and any excess funds will be used to pay down first mortgage.
This program is only good for Single Family homes, Townhomes or Condos with 95% LTV or below.
There is no household income limitation- Only Applicant income for qualification purposes and you must have a debt to income ratio of 50% or less.
Some of the benefits of this program are lower mortgage insurance rates for the borrower and your insurance rates may be reduced or even paid for at closing.
See county Income Limits to determine the median income limit .and note that .this is viable for only owner occupied parties not investors.
Finally there is a 2 hour Buyer education required course or approved 1 hour mortgage insurance education class that you must take to be eligible.
There are fees involved as well they are Florida e-housing fee's of $225, a compliance fee + $300 US Bank funding fee + $85 tax service fee at closing that will be deducted from the 3% Grant you receive.
#4 House 2 Home (Sapphire) FHA Down Payment Assistance for ALL Florida Counties
This Sapphire programs grants participants up 4.5% in down payment assistance in ALL Florida Counties for FHA Loans and the assistance is forgiven when you close.
You do NOT need to be a first time homebuyer. There is however a 1.75% origination fee for FHA and USDA. A 1% Origination fee for VA Loans. Buyer cash or Seller credit must be provided at Closing.
You have to be the one to live in the home as the primary resident; again, no investors are eligible. This is good for not only single family homes but also homes that have 1-4 Units, Duplexes, Triplexes and Quad-plexes. Double wide mobile homes are eligible as well.
They offer 30 year fixed terms and it can be used with VA mortgages, FHA and USDA mortgages as long as they qualify for them. The maximum Income Limits are set at 140% FHA, VA or USDA of Florida County the house is located. Income limit is based off qualifying income reported on the 1003, regardless of household size.
The sellers can tribute up to 6% towards Buyers Closing Costs and there is no purchase price limit. Sorry, No 203k Renovation loans allowed.
#5 Federal Home Loan Bank Down Payment Assistance Grant
Is a grant that offers a 4:1 matching fund up to $5,000 for certain buyers. The grant also provides 4:1 matching funds up to $7,500 for those involved in Public Safety, Medical, or Education occupations.
Again the buyer must be First Time Homebuyer or someone who hasn’t owned a home in 3 years and they must live in the home as the primary resident.
Receiving lender credit is possible with this grant and there are no bank statements that are required you use 1003 income only.
The Maximum purchase price not to exceed the FHA limits in the counties being considered and the income must be at or under 80% of the HUD Median Income.
#6 USDA / Rural Development Loans
The USDA loan gives up to 102% financing in the Florida Counties that participate in this Rural Development loan.
Buyer does not need to be 1st time Home Buyer but must has at least 3 active trade lines on their credit.
The loan allows higher Income Limits than the average state or county programs and has a maximum purchase price of FHA limits in area purchased.
Lender credit is available and there is no Prepayment Penalty Fee if loan is paid out early. The seller is allowed to offer up to 6% contribution toward closing costs in this program.
#7 VA Loans
For our Vets there is no down payment needed as long as the sales price doesn't surpass the appraised value.
You do not have to be a First Time Homeowner and lower credit scores are possible. The VA home loan can be combined with the Florida Bond Program. There is no private mortgage insurance premium required and closing costs may be paid by the seller.
Again there is no Prepayment Penalty Fee if loan is paid early and the best part is that you can use the VA home loan again as long as the first is paid off.
VA-backed loans are assumable, as long as the person assuming the loan qualifies.
To be eligible you must have your Certificate of Eligibility and live in the home as the primary resident.
#8 2017 OWN A HOME OPPORTUNITY
Own a home offers a 30-year, fixed-rate FHA first mortgage loan that is originated by trained and approved lenders throughout the State of Florida. The program is offered to all borrowers who meet income, purchase price and other program guidelines in Volusia county (other counties qualify to contact me for a complete list) and can otherwise qualify for a loan.
The maximum purchase price in Volusia County is $ 88,500 and purchasers must be primary resident.
There are no first time home buyer restrictions and purchasers do not have to pay Intangible tax or documentation stamps at closing.
Buyers do have to have a minimum of $1000.00 to Close on their home.
An Applicants FICO credit score must be 640 on FHA, VA, USDA to qualify for 4% grant, 660 FICO to qualify for 5% grant at closing table.
All bank deposits outside of or separate from payroll require detailed explanations and pay stubs AND W2’s are required for this loan. You must show a 2 year history of continuous employment to qualify. There are low fixed interest rates to enjoy.
Buyer must have a 44.9% Debt to Income ratio or less and can purchase new or resale homes as long as they are Single Family Residences and Fee Simple Townhouses, no manufactured or mobile homes are allowed.
As with most of the programs, no Bankruptcies in last 2 years and no foreclosure last 3 years.
Credit restrictions include but may not be limited to: No Manual Underwrites, 3 trade lines with no late marks in last 12 months, No NSF's in last 6 months, Non-traditional credit not allowed.
Cosigners are permitted for FHA loans under very specific conditions.
For more detailed information and qualifying factors please give me a call and I will gladly set you in the right direction. Any time we can get assistance toward ownership is a good time especially now with the rates being so low!