Qualify for $15,000 To Purchase a Home in Clearwater, FL
It is now time to purchase a home! However, the average American does not have the savings to make the minimum required down payment. So, where do they turn to? They must turn to local or state agencies for assistance. With the down turn in the economy, down payment assistance funds are becoming harder to find, either because the agencies are running out of funds or their rules have changed based on the Housing Stabilization Act passed by the US Government. But there is a beacon of light available.
I'm excited to announce that I've recently been approved to participate in "Making Pinellas Home". This program will lend up to $15,000 towards your down payment and closing costs. "Making Pinellas Home" is funded by the Housing Finance Authority of Pinellas County. This program is designed to help low to moderate homebuyers purchase a home within Pinellas County.
Of course nothing is free or without conditions. Here's what you need to know:
- The assistance is in a form of a no-interest, 15 year second mortgage. Payments are deferred for the first five years. The repayment of the second will start on the 61 month at $83.33 per month for the next 180 months.
- There are income limitations based on household size (all persons living in the home) and the income used is based on all persons over the age of 18 living in the household whether or not they are actually qualifying for the first mortgage. Example: If a husband and wife with two children are living in the home you would have a household size of 4. If both work but only one is on the first mortgage you still have to use both incomes to determine if you are eligible for the $15,000 assistance. The income calucation for qualifying is different than what we, as a lender, traditionally use. The qualifying income used for this program forecasts income for the next 12 months. So don't rely on your past income to determine if you qualify for the $15,000. We have to look towards your future income to make the determination. Here's the Income Chart:
Household Size <--> Maximum Income
1 <--> $33,150
2 <--> $37,900
3 <--> $42,600
4 <--> $47,300
5 <--> $51,150
6 <--> $54,950
7 <--> $58,700
8 <--> $62,500
- This program can be done in conjunction with FHA and VA loans
- The maximum combined loan to value is 105%:
Example: $150,000 - Sales Price
$ 6,000 - Closing Costs and Pre-paid Expenses (taxes and insurace)
$156,000 - Total Costs to purchase home
$141,000 - First Mortgage
$ 15,000 - Second Mortgage*
$156,000 - Total Combined mortgages
Cash required to close out of buyers pocket ZERO.
*The second Mortgage covers both the down payment plus the closing costs and pre-paid expenses.
- Maximum sales price $240,158
- Property Types: 1 unit single family homes, Condominiums, Townhomes, and Manufactured Homes with DCA Labels
- To meet compliance on the closing only one title company is allowed: First American Title Company (Pat Stobie), 727-442-2200. This may be an issue with REO/Foreclosures but I am sure that if it is disclosed up front they may be willing to allow the closing to take place with First American instead of their title company.
While there are some restrictions to this program, it is a fantastic opportunity for buyers and sellers. Also if you've haven't own a home within the past three years, you also qualify for the $8,000 IRS Tax Credit.
Call me for information or to see if you qualify for "Making Pinellas Home".
