By Jamie Swann, Contributing Writer
Buying a home is an exciting time, but many first-time homebuyers struggle with securing money for a down payment.
The state of Florida and city of Jacksonville teamed up to ease some of that burden by offering down-payment assistance to first-time homebuyers in Duval County.
Sandy Smith of Florida Housing Finance Corp. said both programs can be combined to qualified buyers for up to $30,000.
She said the assistance is forgiven as long as the person maintains the home as his or her primary residence.
The city recently expanded its program to allow more buyers to qualify.
The Head Start to Homeownership program offers qualified buyers $15,000 in assistance, which is forgiven 10 percent per year, meaning the balance is zero after 10 years.
The expansion also increased income limits so potential homeowners who make up to 120 percent of the area’s median income can qualify. For a single person, that is $53,280; for a family of four, it’s $75,960.
The grant money comes from the Sadowski Trust Fund, which is funded by document stamp tax revenue dedicated to affordable housing programs.
“Many first-time buyers are looking to buy in Duval County because of the assistance programs,” said Smith at the event sponsored by the Northeast Florida Association of Realtors. “They are making homeownership possible for everyone.”
The state started the Hardest-Hit Fund Down Payment Assistance, which offers $15,000 for potential homeowners who earn $88,620 or less, regardless of family size.
These funds come as a second or third mortgage that is forgiven at 20 percent per year, so is fully forgiven after five years.
The Florida Housing Finance Corp. has designated $50 million for the program. Currently, the funds are only available in Duval, Hillsborough, Brevard and Orange counties.
The programs can be used together, allowing a qualified buyer to receive up to $30,000 in assistance that does not have to be repaid if the homeowner completes the necessary requirements.
Receiving $30,000 in down-payment assistance can be life changing for many first-time buyers. The programs can also make a difference in stabilizing neighborhoods by turning renters into homeowners.
“As a Realtor, we are constantly flooded with new information for first-time homebuyers,” said Christie Radney, a Realtor with Coldwell Banker Vanguard Realty. “I’ve learned there is money available for qualified buyers. I need to make sure my qualified buyers know it as well.”
With the $30,000 aid, a monthly payment for a $130,000 home could be reduced from an estimated $621 to $477 because the mortgage is reduced to $100,000.
This also cuts down the total payment over the life of the loan by more than $50,000 since there is no interest on the $30,000.
“That amount of money can be the difference a buyer needs to get into their first home,” said Radney. “The American dream of home ownership can be possible for everyone.”