In today’s housing market – cash is king.But not everyone has that kind of money, and with prices so high, just making a down payment is a struggle. You know your price point, you qualified for the loan and you can make the monthly payments – but you don’t have the cash for your money down.That’s a reality many home buyers face and in today’s market where cash is king, it may be harder to find the right home – but not hopeless.Local real estate agent Mike Allende has been in this industry for 21 years.He combs the multiple listing service daily helping clients find their dream home even when they have no money to put down and in some cases, they may not even need a down payment. “I was able to utilize what is called the USDA rural program. Which if the home that you’re purchasing qualifies in a rural area. You’re able to qualify for 100% financing, so you wouldn’t need a down payment at all,” Allende said.That program allowed Allende to find the home of his own dreams. “Yes, absolutely. We bought it very easy. It’s a great program to utilize. You have VA loans for military veterans which is also zero down; however, the USDA rural allows anyone to qualify as long as it’s in a rural area,” he said. But you don’t have to move to the outskirts of the city to get help.There are a lot of programs out there and the best agents work with the best lenders who know what’s out there. “There might be a program that just came in yesterday that the realtor doesn’t even know about, so it’s important that you’re communicating with your lender as well and you have that relationship and good connection and you’re on the same page,” Rose Kemp, Treasurer, Orlando Regional Realtor Association, said.The Florida Housing Finance Corporation was developed 40 years ago by the state legislature to provide affordable housing for residents. They recently upped their down payment assistance from $7,500 to $10,000.New homebuyers just need to use an approved lender and meet their requirements.In 2021, they provided more than $38 million in assistance and assisted with 300 home loans. “We work with lending institutions, banks, credit unions and mortgage companies. We are an additional menu option specializing in the first-time home buyer,” Trey Price, Executive Director of Florida Housing Finance Corporation, said.But for those who don’t qualify for anything – new home buyers are getting more resourceful and relying on their inner circle. “One of the main things that I’ve seen recently is family members supporting family members and gifting their down payment,” Kemp said. It’s called a gift and it must be approved by the lender and follow their guidelines.But for home buyers who can’t come up with the money and worry they can’t compete with cash, Allende says don’t be.This is where your agent and lender go to bat. “The important thing is the lender provides a strong pre-approval letter stating the buyer is ready to go and has all their ducks in a row,” Allende said. It’s a true team effort and while cash may be king in today’s market, a little patience and trust can prove to be a Royal Flush.
In today’s housing market – cash is king.
But not everyone has that kind of money, and with prices so high, just making a down payment is a struggle.
You know your price point, you qualified for the loan and you can make the monthly payments – but you don’t have the cash for your money down.
That’s a reality many home buyers face and in today’s market where cash is king, it may be harder to find the right home – but not hopeless.
Local real estate agent Mike Allende has been in this industry for 21 years.
He combs the multiple listing service daily helping clients find their dream home even when they have no money to put down and in some cases, they may not even need a down payment.
“I was able to utilize what is called the USDA rural program. Which if the home that you’re purchasing qualifies in a rural area. You’re able to qualify for 100% financing, so you wouldn’t need a down payment at all,” Allende said.
That program allowed Allende to find the home of his own dreams.
“Yes, absolutely. We bought it very easy. It’s a great program to utilize. You have VA loans for military veterans which is also zero down; however, the USDA rural allows anyone to qualify as long as it’s in a rural area,” he said.
But you don’t have to move to the outskirts of the city to get help.
There are a lot of programs out there and the best agents work with the best lenders who know what’s out there.
“There might be a program that just came in yesterday that the realtor doesn’t even know about, so it’s important that you’re communicating with your lender as well and you have that relationship and good connection and you’re on the same page,” Rose Kemp, Treasurer, Orlando Regional Realtor Association, said.
The Florida Housing Finance Corporation was developed 40 years ago by the state legislature to provide affordable housing for residents.
They recently upped their down payment assistance from $7,500 to $10,000.
New homebuyers just need to use an approved lender and meet their requirements.
In 2021, they provided more than $38 million in assistance and assisted with 300 home loans.
“We work with lending institutions, banks, credit unions and mortgage companies. We are an additional menu option specializing in the first-time home buyer,” Trey Price, Executive Director of Florida Housing Finance Corporation, said.
But for those who don’t qualify for anything – new home buyers are getting more resourceful and relying on their inner circle.
“One of the main things that I’ve seen recently is family members supporting family members and gifting their down payment,” Kemp said.
It’s called a gift and it must be approved by the lender and follow their guidelines.
But for home buyers who can’t come up with the money and worry they can’t compete with cash, Allende says don’t be.
This is where your agent and lender go to bat.
“The important thing is the lender provides a strong pre-approval letter stating the buyer is ready to go and has all their ducks in a row,” Allende said.
It’s a true team effort and while cash may be king in today’s market, a little patience and trust can prove to be a Royal Flush.
Read More:The creative ways Floridians are working the frustrating housing market
2022-05-07 23:51:00
