Government loan programs

FHA loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Only a 3 percent down payment is required.
• Closing costs can be financed.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
• Loans are assumable to qualified buyers.

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rates.
• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

 

First Time Home Buyer Program

Florida Housing’s First Time Homebuyer Program provides a continuous stream of lending throughout the year for eligible first-time homebuyers. If you're not a first-time homebuyer, you may still be eligible if you're purchasing a home in one of 13 GO Zone counties. The program offers low-interest 30 and 40 year fixed-rate loans, downpayment and closing costs assistance as well as access to credit counseling. Teachers, firefighters, healthcare workers, police officers, as well as active duty and veteran military personnel could be eligible for lower interest rates. Eligible applicants include individuals who: have never owned a home, don't claim their mobile home as real property, haven't owned and occupied a home as their primary residence within the past three years, have established credit worthiness, and have an annual income that does not exceed program limits. Program Limits: Income Limits Purchase Price Limits Florida Assist Progam Income Limits

FHA Cash Down Payment Grants

Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to achieve homeownership.

Ameridream
The AmeriDream program offers gift funds up to 10% of the home's purchase price which do not have to be paid back. Buyers must agree however, to return any funds that are not used toward down payments or closing costs and to return the funds if the sale of the home does not close on the scheduled closing date.
[ -more on Ameridream Program- ]

Nehemiah
The Nehemiah Program has helped over a quarter of a million Americans purchase homes. Unlike some down payment assistance programs, Nehemiah offers down payment help to anyone who qualifies for an approved FHA loan. Buyers can get up to 6% of the final contract sales price for down payment and/or closing costs.
[ -more on Nehemiah Program- ]

American Family Funds
American Family Funds (AFF) administers The Dove Foundation, a non-profit charity offering down payment and/or closing cost assistance to qualified American home buyers. Once you are pre-qualified for the FHA loan and find a property you want to buy, notify your loan officer, who will apply for the AFF down payment assistance on your behalf.
[ -more on American Family Funds Program- ]

Family Home Providers
Family Home Providers is a non-profit affordable housing company offering down payment assistance to any family with steady employment and good credit. Under the Family Home Providers plan, those with an FHA loan are eligible for 3% of the final contract price of the home purchased with the FHA approved loan.
[ -more on Family Home Providers Program- ]

Futures Home Assistance
Futures Home Assistance is a non-profit charity group offering a free down payment gift up to 6% of the closing costs of a home purchased with an FHA loan. The mission statement of Futures Home Assistance includes the belief that people who dream of owning a home should not be hindered because of a lack of down payment funds.
[ -more on Futures Home Assistance Program- ]

Grant America
The Genesis Program, also known as Grant America, is a non-profit down payment assistance program. It is operated by the Penobscot Indian Tribal Nation and is HUD-approved to offer up to $34,000 in assistance, even to those living outside tribal jurisdiction.
[ -more on Genesis Program- ]

Housing Action Resource Trust
The Housing Action Resource Trust or HART program is a non-profit housing organization offering help to home buyers who qualify for FHA "first mortgage" loans. A first mortgage does not mean "first-time home buyers only," but rather those who are getting the initial mortgage and not applying for a second mortgage or home equity loan.
[ -more on HART Program- ]

Newsong
Newsong provides a down payment assistance program for residential and commercial properties. This program offers a one-time gift for all closing costs, and there are no income requirements or limits on who can participate. Anyone who qualifies for an FHA loan can apply to receive down payment help from Newsong.
[ -more on Newsong Program- ]

Partners In Charity
Partners In Charity (PIC) is a non-profit group offering down payment assistance on properties such as single-family homes, condominiums, and multi-unit properties. Assistance is also available for rehabilitation programs. Partners In Charity funds are offered to those who qualify for FHA loans or are pre-approved for FHA loan amounts.
[ -more on PIC Program- ]

Responsible Home Ownership
The Responsible Home Ownership program is run by a non-profit organization called Community Housing and Development Corporation. This program offers down payment assistance to low-income individuals who have steady income and good credit. Check with your loan officer if you have specific questions about your participation in this program using an FHA home home loan.
[ -more on Responsible Home Ownership Program- ]

Quickdown
Quickdown is a program that works with non-profit agencies to provide down payment assistance. Home buyers who benefit from Quickdown are those who qualify for approved or pre-approved FHA home loans. This program is designed for those who want to buy a home but are "cash challenged" and can't afford the down payment.
[ -more on Quickdown Program- ]