Whether you’re buying your first Tampa Bay home or your fifth, you’ll still need a down payment (unless you’re using a loan that doesn’t require one, such as a VA loan). That’s true if it’s a condo in Apollo Beach, a luxury home in Odessa, or a golf course home in Largo.
The problem? A lender may require as much as 20 percent of the home’s total value as a down payment.
There’s good news, though. As many as 87 percent of homes in America qualify for down payment assistance, according to RealtyTrac.
What Kind of Down Payment Assistance is Available in Tampa?
There are several ways you can get assistance with your down payment. If you’re a veteran, for example, you can use your VA loan to secure a low interest rate and get a loan with no down payment at all. If you’re not a veteran, you still have several options available to you, including:
- Grants are funds that you don’t have to repay, but usually you must own and live in the home for a set period of time in order to qualify.
- Second mortgage loans. Surprisingly, second mortgage loans are the most common down payment sources. They generally have low interest rates, and the payments can often be deferred over a specific time period.
- Tax credits. Some state and local governments issue mortgage credit certificates. These credit certificates lower the amount of income tax you’re required to pay, which means you’ll have more available income up-front to make your down payment or to pay for closing costs.
In order to make the most of the programs available to you, ask your lender or Realtor® about state and local down payment assistance programs. You can also visit Florida’s HUD website to explore your options.
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Call us at 727-584-8480 or 813-961-6000. If it’s easier, get in touch with us online. We’ll begin searching for your new home right away.