2023-07-22 02:11:14
MIAMI.- Florida residents interested in buying a home have a program government that grants them between 10,000 and 35,000 dollars for the initial payment and the closing of the mortgage loan, facilitating the entrance in the complicated real estate market.
It is not something new, it is about the expansion of the program originally created as a result of COVID for police officers, firefighters, doctors, nurses and personnel linked to health emergencies, then known as Hometown Heroes. As of July 1, state law SB102 extended its scope to all professions.
To qualify for the program, the interested person must be a resident of Florida for more than 12 months, cannot have owned a home in the last three years, must have a full-time job, where they are paid through W2, and be employed a minimum of 35 hours per week. The company you work for must have a physical presence in Florida. A person who lives in Florida and works remotely for a company in another state would not qualify, Al Marchena, a mortgage advisor at Liberty Mortgage Lending, told DIARIO LAS AMÉRICAS.
“The program grants up to 5% of the mortgage loan, which allows the buyer to hardly need money saved to obtain a mortgage.”
The specialist explained that Hometown Heroes is compatible with any mortgage loan, be it FHA or conventional, but requires a minimum credit score of 640 points.
Today, to obtain a conventional 30-year mortgage, you need a credit of 700 points and banks offer 7.4% interest, however, with the Hometown Heroes program this interest is 6.7%, the specialist said.
The current cost of homeowner’s insurance and the value of the property tax mean that in order to buy a $400,000 home, a gross income of at least $84,000 is needed, without having other debts, Marchena clarified.
On the other hand, the program constitutes a 30-year second mortgage, with zero percent interest. That is, if a Hometown Heroes beneficial owner sells his house or refinances it, he must pay his debt to the State.
In spite of everything, it is an opportunity for those employees, whose income is considerable and lack savings in the bank or do not wish to spend them on a mortgage.
Marchena acknowledged that there are other programs, such as 3-2-1 Buydown that allows qualified buyers to obtain a mortgage with an interest rate lower than the current one. That is, if now that the interest rate is 7.4%, with the program 3-2-1 Buydown During the first year of the mortgage, you would only pay 4.4% -three points lower than the market-, the second year 5.4% and the third year 6.4%.
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