Do you live in Orange County, Florida? If so, you are in luck because there is an Orange County Down Payment Assistance Program! This program helps first-time homebuyers buy a new home. The money from the program helps you come up with the necessary funds for your down payment and/or closing costs on an FHA loan.
What Assistance Can You Receive?
The assistance is in the form of a loan. It’s not a 30-year loan like most mortgage programs, though; it’s a 10-year loan. The difference is it’s a deferred loan. You don’t have to make payments on the loan until one of the following events occur:
- You sell the home
- You rent out the home
- You refinance the original loan
- You no longer use the home as your primary residence
How to Qualify for the Orange County Down Payment Assistance Program
Not just any borrower qualifies for the Orange County Down Payment Assistance Program. You must meet the following requirements to qualify:
- You must be a first-time homebuyer (You can’t have been a homeowner for the last 3 years)
- You must be a legal US resident
- You must be a resident of Orange County, Osceola County, Seminole County, or Lake County
- You must have at least a 640 credit score
- You must have at least 1.75% of the home’s price to contribute (at least $1,000)
- Your income must be within the program’s guidelines
The Orange County Down Payment Assistance Program classifies you based on your income. You can be:
- Very low income
- Low income
- Moderate income
You can see where you stand with your income on this chart.
You may be able to borrow between $10,000 and $30,000 for your down payment and closing costs. In order to qualify, you must be able to qualify for a first mortgage. You must also take the homebuyer’s education course required by the program. The maximum sales price of the home is $214,000 in order to qualify for the program.
First, the only properties eligible for the program are owner-occupied properties. In other words, you cannot own any other properties and you must live in the property the program helps you purchase. You can purchase any of the following types of properties:
- Modular home
The only type of home that isn’t eligible is the mobile home.
Applying for the Orange County Down Payment Assistance Program
If you think that you qualify for the Orange County Down Payment Assistance Program, you can apply with the following steps:
- Take the appropriate homebuyer’s education course
- Find financing for your first mortgage and obtain a pre-approval
- Find a home that fits within your pre-approval and the program’s maximum $214,000 purchase price
- Let the lender know of your intent to use the Orange County Down Payment Assistance Program so they can send your loan package to the Housing and Community Development Division
If you qualify for the Orange County Down Payment Assistance Program, you can get the help you need to put money down on a home and cover the closing costs. The closing costs alone can be as much as 5% of a home’s price, which can be hard to afford. Use this program to your advantage and buy the home you’ve always wanted.