Government-insured and government-subsidized mortgages are available to help home purchasers qualify for mortgages, to reduce the cost of the home-purchase mortgages, and to provide safeguards against losing the purchased home due to decreases in household income.
Who is eligible?
Government-assisted mortgages are available to homebuyers who intend to live in the home. Some mortgage assistance programs are specifically targeted to low-income or first-time homebuyers and provide subsidies or loans to reduce down payment requirements or monthly mortgage payments. If you are currently in the United States military or if you have ever served in the U.S. armed forces, you may be eligible to get a loan guaranteed by the Veterans Administration (VA).
What benefits are provided?
The most frequently used mortgage assistance programs are the FHA-insured and VA-insured mortgage programs. The FHA program limits down payment requirements to three percent or five percent of the appraised value of the house. Participating lenders are required by the FHA and encouraged by the VA to provide borrowers who default on their mortgages an opportunity to enter into agreements to lower payments for a period of time to catch up with their mortgage payments.
Other mortgage assistance programs specifically target low to moderate income first-time homebuyers. For example, Florida Housing Finance Corporation offers the First-Time Homebuyers Program, through which qualifying first-time homebuyers may take advantage of low interest rate mortgages available through numerous participating lenders across the state. Depending on income and family size, homebuyers may also qualify for zero percent, non-amortizing second mortgage loans to help with down payments and closing costs.
How do I apply?
Government-assisted mortgages are available through private lenders. Application for these mortgages can be made through participating lenders. Information about the lenders that offer these mortgages in your area and about any local homebuyers’ counseling programs may be available from your local government community development department or your local housing finance agency. Ask about the First-Time Homebuyers Program offered through the Florida Housing Finance Corporation in Tallahassee at (850) 488-4197 or toll-free at 1-888-447-2977. In addition, participating lenders and the Housing Finance Corporation let homebuyers know about these programs through public notices and brochures.
