The interest rates vary based on program type, loan-to-value, and credit score. This can get a bit dry so we'll move on to the part that affects you - lender credits. If you're qualifying rate is x.xxx%, there may be higher rates available in which the market credits the lender. This credit is passed on to you, the buyer. You may be able to receive up to 3% in lender credits!

Grants often come with limitations as they typically come from limted funds, and are intended to be used only by those who truly need the assistance. Other qualifying overlays may include income, credit scores, or debt-to-income ratios.

We have a GREAT grant option available for our buyers which offers up to $7,500 in assistance and has no restricitve overlays other than income. Because this grant is reliant on donations, grant funds typically become limited. Also, the grant only offers what is needed. For example, if you are short only $2,000 in funds to close, the grant will only provide $2,000.

There are other grants available based on cities, counties, and even professions.

Down payment assistance (DPA) programs offer first time buyers financial assitance to purchase their first home. These are a great opportunity. However, they usually come with significant restrictionsand therefore buyers may not qualify for the assitance. For example, a Conventional Loan Program may have a debt-to-income limit of 50%, but the DPA program may cap at 44%. This means the borrower will have to settle for a lower purchase price amount in order to qualify.

Additionally, some of these programs are required to be paid back if the buyer refinances or sells the home. The assistance money is added as a silent second mortgage with no interest. 

Some programs amortize it over 15 years at a lower interest rate. So the buyer is paying two mortages. 

Some are forgiven over time; commonly over a 5 year period. In this example, the assistance depreciates at 20% per year. For example, if the buyer refinances after 2 years, they will be required to pay back 60% of what they received. If they sell after 4 years, they will be required to pay back 20% of teh assistance received.

Your Florida Mortgage Heroes offers the Hometown Heroes Down Payment Assistance program. It