I know lenders and other Realtors are telling you it's not true you cant do it, they are WRONG. I wrote a blog the other day for First Time Home Buyers wanting to use their $8000 Tax Credit as their Down Payment. It's true it can be used as your minimum 3.5% down payment however very few people will have the opportunity to do so.
I have worked with Government agencies in Seminole & Orange County helping first time home buyers for years get assistance and this time it's no different. The State has granted local agencies throughout Florida a certain amount of funds for First time home buyers to use as their down payment. That means not everyone will be able to do so. These agencies will take applications only allowing 75 people to apply and with only about 50-60 of those people being able to get funds.
Want to be one of those people? The key is having your team in place that knows the ins and outs of these programs and who to get your file to. That's the easy part I already have the team, all you need to do is hire us. Applications come out July xx, 2009, then August XX, 2009 you will have the opportunity to make application, I have the date which I will release to my clients, cant give all my hard earned secrets away. I know the tips on how to make your application stand out and get you approved. Out of the 40 families helped by Seminole County SHIP funds, 5 of those people were my clients.
If you are a first time home buyer looking for down payment assistance in Seminole County you have come to the right place, contact me today to get started, you only have the next few weeks to get ready, dont miss out on this great opportunity to purchase a home with no money out of pocket!
Call or text me at 407-810-6304, follow me on twitter at LakeMaryRealtor or send me an Email at Heather@HeathertheRealtor.com
Heather Joubran, GRI, NRBA, CLHMS, CDPE
RE/MAX Central Realty
www.HeatherTheRealtor.com (407) 810-6304
Specializing in First Time Home Buyers, Short Sales, Bank Owned Real Estate, REO & Foreclosure Properties
Servicing Real Estate Needs in: Lake Mary, Longwood, Winter Springs, Sanford, Altamonte Springs, Oviedo, Orlando, Downtown Orlando, Thornton Park, College Park, Winter Park, Maitland, Windermere, UCF, Lake Nona, Baldwin Park, Apopka, Ocoee & Winter Garden
Interesting. All the lenders I have talked to about this say that it cannot be done...
It is state specific there are only 5 states on board with this right now.
In New Jersey, only up to $5000 can be used *Known as a Prefund*, IF the loan is FHA having the buyer or one of the financing possibilities putting down the 3-1/2% required by the FHA.
The $5000 is a secondary lien/loan against the borrower/property but it is a non-interest loan presumed to be paid back once the $8000 tax credit received.
So perhaps there may be possibilities in different states!? But it is our responsibility to find out what they are, or at least keep cheering our clients on as they struggle to make their credit score better and/or save up enough money to put that downpayment on that dream home so they can qualify for that tax credit by November 30th!
I find it very confusing for everyone here in our area. I've heard it can be done, but most lenders here don't know how...
Ellean - very similar here we are capped at the $8000 or 10% of the purchase price it's the same requirements as the tax credit but it's a bridge loan like you said you guys do and they have 18 months to repay it to the county. There are 5 states in total using the funds this way.
Bob- Dont go to the lenders go to your local or state officials they will let you know. So far Florida and New Jersey are two states doing this, there are 3 others.
Nice job with the explanation. I believe here the buyers can use it for down payment but only above and beyond their own 3% down.
Congrats Heather; your blog is the first one I have seen that doesn't give false hope to the hundreds of thousands of people that really believe they can use The $8,000.00 up front.
I believe the bottom line continues to be, "Lenders MAY do anything they want concerning the up front money, but only a handful will pause for a second and give consideration".
Great post, as always, Heather! :)
I know that the new law on this supposedly went into effect yesterday. I've asked about 5 different mortgage brokers and lenders to notify when they hear about a deal where the 8K actually gets applied at the closing. So far nobody has told me they have seen one, but that doesn't mean it hasn't happened. If you do have one, please post about it.
Rob- That's what this blog is about is how to use and where it comes from.
Pacita that's the problem people from other states comment and say this cant be done or your information is incorrect even lenders in our state say that, because they are not able to use their bridge loans towards Down Payment.
Florida through their local goverment SHIP offices are allowing first time home buyers who qualify for the $8000 tax credit to use their funds to satisfy their 3.5% down payment requirement. No ifs ands or butts about it. That's how it works.
I think even us Realtors need to remember when commenting on others blogs that real estate is local and while one thing may not be so where we come from it may be the rule where that blogger is from.
Seminole & Orange County First Time Home Buyers can use the $8000 tax credit as their down payment if they go through the local SHIP agencies.
Awesome post Heather..very imformative to the buyers, but keeps them coming back for more! You have me interested too, lol..
Thanks for the info