By Glenna Hobbs
There are many desirable destinations in the US, and among them is the Sunshine State. Surrounded by the Gulf of Mexico on one side and the North Atlantic Ocean on the other, Florida has the largest coastline in the country.
Combining the climate, location, and everything else this state offers, it’s understandable why it’s such a popular place for tourists and home-seekers. Owning a little piece of this beautiful place is available to anyone interested, and with an estimated rise in price in the future, you might as well start considering it now.
What is a first-time home buyer in Florida?
Before diving into the guide, it’s essential to define one important aspect—first-time home buyers in Florida. Contrary to popular belief, this does not apply to people looking to get their hands on a piece of property for the first time.
A first-time home buyer is a person that hasn’t owned a residence in the past 3 years. It means that even if you have a lovely beach house in the 90s and sold it, today, you’re still considered a person buying property for the first time. This is crucial for another aspect which will be mentioned further in this guide.
Another essential thing to mention is that anyone can be a first-time home buyer in Florida. Apart from people living in this state, if you’re not from there, you can also be a candidate and get a vacation home or buy one if you plan to relocate.
Financial things to consider when buying your first home in Florida
Buying a home in Florida isn’t an overly complicated process, but there are a few things to consider. You can probably guess that the three main aspects are location, size, and budget, which are closely intertwined.
For the most part, your budget will determine the location and size of the property, so make sure to research the market before making a decision. Alternatively, you can hire an agent to help.
With that out the way, let’s discuss the financial aspects. Despite the rise in numbers of people buying property with cash, a loan is still the most common way to most people to get their home.
Is there an income limit?
One of the many considerations people make when buying a property, not just in Florida but in general, is income. Some states have stricter laws on this matter, which prevent some people from buying a home. Luckily, that’s not the case here.
As a state, Florida doesn’t impose any restrictions in terms of income, meaning that anyone can be a first-time buyer. The only limitation you may face is that the lender may not approve the funding. Yes, the loan has some limitations, but overall, it’s a flexible state for buying a property.
What’s the minimal down payment?
If you have some basic knowledge about home loans, you’ll know that there is a little thing called a down payment. When buying a home, this initial expense is usually calculated in percentages and deducted from the property's value. Regarding Florida, the “rules” about the down payment are similar to the rest of the states.
Depending on the type of loan, you’re looking at different percentages. VA or USDA loans generally require a 0% down payment, meaning you can finance the entire property value. On the other hand, FHA loans require a 3.5% down payment, while regular loans require 3%.
Are there first-time buyer programs?
One of the great things about this state is that it offers multiple programs for home buyers, some of which you can utilize yourself.
Several programs for down payment assistance in Florida offer financial support for potential homebuyers. With the main goal aside, each one offers a different kind of help, so you should give them a look and see which one works best for you and if you’re eligible for it.
Next up is the Hometown Heroes program, which offers support for potential buyers who serve their communities. Most programs have a limit on how much help you can get, and with this one, it’s either 5% or $35,000, depending on the total value of the property.
Another popular program in Florida is the Finance Corporation’s Homebuyer one. This program offers support differently. It works with approved lenders to offer you a fixed rate for 30 years. It doesn’t come without some conditions, though. The two main ones are that your minimum credit score should be 640, and everything must go through an approved lender.
In addition to these, there’s also the Florida Housing Finance Corporation, which offers multiple types of programs. These include programs for down payment and closing cost assistance with a variety of limits to cover most potential buyers’ needs.
