Downpayment Assistance
Downpayment Assistance for your home in St Pete
BREAKING NEWS the city of St Pete just approved a $10,000 INCREASE in total downpayment assistance to qualified buyers starting July 1st. That means if you’re purchasing a house anywhere in the city of St Pete you could qualify to receive up to $75,000!
Recent Downpayment Assistance Realization...
I had a heartbreaking realization a few months ago when I asked my pre approved buyer if his lender had mentioned any down payment assistance programs. He looked at me sideways and said “No what’s that?” Turns out he qualified for $17k.
A few months later I was at a first time home buyer coffee date with a new buyer and I asked the same thing. She had been working with a realtor before on a house she absolutely loved but missed out on because her lender said she couldn’t afford it with the flood insurance and downpayment amount.
Turns out this buyer qualified for not one, but two downpayment assistance programs. My lender was able to get her $60k in cash for her new home AND was approved for a conventional loan over an FHA loan saving her $4500 in fees and PMI for the life of the loan.
It makes me sad to think she could have gotten that home she loved.
Oh well. Everything happens for a reason. And now she has me and Kristin to help.
Is it lenders lack of knowledge or them just not wanting to do the extra work? Who’s to say.
This year my biggest motivation is to close as many deals as possible where I save my clients money.
So What’s Downpayment Assistance?
Downpayment assistance is where a buyer qualifies for a program, grant, or low to no interest loan to go toward the down payment of their home. These programs are provided by federal, state, county or local government agencies, nonprofits or employers.
This is not a rate buydown or gimmick where the lender makes money somewhere else by hiking up their fees.
Who Qualifies?
Some programs are based on your occupation, income, or simply that you’re a first time buyer living in a certain city.
Downpayment Assistance Programs:
The city of St Pete offers homebuyers purchasing a new or existing single-family residential housing unit, condo or townhome located within the City’s municipal boundaries a downpayment assistance program based on your income for buyers purchasing a house up to $481,000 who plan to occupy the home for at least 10 years.
This program has income limits based on the number of adults living in the home. If you’re under a certain income limit the assistance you received (up to $75k) does not need to be paid back if you live in the home for 10 years. If you sell the home before 10 years the assistance can be paid back from the equity you receive from the sale.
Lenders can apply for this program on behalf of buyers. Reach out to Kristin Sakora if you’d like to see if you qualify!
You can find more information abut income limits here.
*I just had a home buyer approved for this assistance at $60k*
Similar programs are also provided for Clearwater, Largo, and Tampa.
Pinellas County Community Development is another similar to the St Pete program where down payment assistance is a deferred payment loan repayable at sale or refinance. The maximum assistance amount is up to $50,000, with a 300-month term. This one also has an income limit and occupancy requirement.
Tampa Dare to Own the Dream downpayment assistance is a Forgivable loan for First time homebuyers providing maximum amount of up to $40,000, with a 120-month term. The borrower must contribute at least $1,000 to their downpayment. There are income limits for this program.
Home Sweet Home Hillsborough Program is a deferred loan paying up to $25,000 on a 30 year term, meaning there is no interest but the loan must be paid back if the property is sold or refinanced. The buyer must be a first time homebuyer and occupy the property purchased within 60 days of closing, live in the property as their principal residence and the property may never be rented. There are income limits for this program as well.
A Florida housing program provides down payment and closing cost assistance to first-time, income-qualified homebuyers to purchase a primary residence in the city in which they work and serve.
With this program, buyers can receive up to $35,000 in downpayment and closing cost assistance.
They can also receive lower interest rates on an FHA, VA, RD, Fannie Mae or Freddie Mac first mortgage, reduced upfront fees, no origination points or discount points.
With this program the money is offered as a 0%, non-amortizing, 30-year deferred second mortgage. When you sell the property this will become due. Or if you end up refinancing the first mortgage, transfer of deed or if you no longer occupy the property as your primary residence.
This option is great for those who need extra cash upfront for closing costs or downpayment and will use the equity when they decide to sell to pay this back.
*I just had a home buyer approved for this assistance at $17k*
You can only apply for this program through a lender, reach out to Kristin at kristin.sakora@usbank.com
Florida Homeownership Loan Program is a second mortgage that offers $10,000 for down payment or closing costs. This is a 3%, fully amortizing, second mortgage with a 15-year term. It has a monthly payment of $69.06. In the event the borrower refinances, sells the property, pays off the first mortgage, conveys deed or no longer occupies the property as their primary residence, any remaining unpaid principal balance (UPB) will become due, and payable, in full.
This one isn’t as enticing as the others as it has accrues interest and requires a monthly payment but may be a better option than obtaining a personal loan for closing costs. However, I’d recommend seeking a seller concession over this, which I can walk you through.
This is available in Pinellas, Pasco and Polk counties Pinellas County maximum is $12,000 Pasco and Polk maximum is $8,000
The First-Time Home Buyer Grant Program provided by the Realtors Care Foundation provides up to $7,500 to first time buyers who make $80,000 as a single owner or 91,980 with 2 occupants. Grants you do not have to pay back.
To help lower‐income families afford homeownership there’s the Mortgage Credit Certificates, which is an annual federal income tax credit. The program allows homebuyers to claim a dollar‐for‐dollar tax credit for a portion of mortgage interest paid per year, up to $2,000. The remaining mortgage interest paid may still be calculated as an itemized deduction.
Similar to what the city of St Pete offers, Theres a Home Key Plus 2nd Mortgage which is available in conjunction with the Home Key First Mortgage. It’s a down payment and closing cost assistance program as a deferred, non-amortizing, 0% interest, second mortgage. This will become repayable when borrowers sell or refinance the property, satisfy the first mortgage, rent or not longer occupy the property as their primary residence.
This is available in Pinellas, Pasco and Polk counties Pinellas County maximum is $12,000 Pasco and Polk maximum is $8,000
National Homebuyers Fund (NHF) is available in Pinellas, Pasco and Polk counties Pinellas County maximum is $12,000 Pasco and Polk maximum is $8,000
Up to $13,649 (3.5% of Purchase Price)
- Up to 3.5% toward down payment rounded up to the nearest dollar.
- Forgivable 10 years from the note date as long as repayment events have not occurred, and borrower has continued to occupy the property as their primary residence.
- Do not have to be a first-time homebuyer.
- May have ownership interest of another property at time of closing as long as it meets insurer guidelines.
- High Balance loan permitted – see price sheet
- 2/1 Buydowns are Permitted on the FHA First – adhere to all FHA requirements regarding Buydowns.
Other Downpayment Assistance Methods:
Realtor Credit
This is unusual, however the way I’m personally set up as a realtor under my brokerage I have a lot of flexibility and I don’t have commission splits with my broker. So if there’s ever a situation where my buyer needs a little extra cash to cover closing costs or repairs in order to close on the house, I’m happy to provide a portion of my commission.
Lender Credit
Similar to what I can do as a realtor above, many lenders have this flexibility too. Just be careful they’re not increasing fees or rates in other
How to actually get Downpayment Assistance:
So you want to buy a house and you’re desperately saving for your downpayment… well maybe you don’t need to wait!! These are just a few of the many programs that could be offered to you according to your area and financial circumstance.
Don’t miss out on free money and please please please don’t just assume you don’t qualify.
Most of these programs you can’t apply for yourself, you have to have a lender apply on your behalf. I HIGHLY reccommend working with a lender that specializes in downpayment assistance programs.
Lucky for you, I know an amazing lender who bends over backwards to get buyers the money they deserve. Just let her know I sent you and she’ll take care of you!
Kristin Sakora | kristin.sakora@usbank.com and CC Kodietalley@lombardoteam.com
Want to talk to an agent first?
If you’d like to set up a call to chat with me first, I’m more than happy to walk you through the home buying process then pass you off to Kristin. Just shoot me a text at 360-306-1410
If you want to browse active listings or first time homebuyer information feel free to poke around!