Buying a home is a major financial goal. But not everyone can get there on their own.
Whether it's coming up with a huge down payment or getting a good interest rate, multiple pieces of the puzzle must come together in order for home ownership to work, especially now that the Miami real estate market is booming.
Fortunately, you don't have to go it alone.
There are financial assistance programs designed to help you secure a quick sale.
Check out some of these home buyer assistance programs designed to get you into your very own home faster.
Shared Equity Mortgages
A shared equity mortgage is designed to help buyers secure their down payment without spending years scrimping and saving first.
The other alternative - asking for a loan from family or friends - is often unappealing. No interest and no term loans rarely work out.
Shared equity mortgages combine the best of both worlds to create an affordable down payment option. The program allows a co-investor to receive a percentage of a home's increased value once it is re-sold.
The program allows a co-investor to receive a percentage of a home's increased value once it is re-sold. So, a parent could enter into the agreement, and instead of simply lending the down payment money, they get a portion of the resale value.
These mortgages help facilitate a quick sale.
But there is a catch.
It's still a private agreement between the borrower and the investor. If one party falls through, it will cost the other.
For example, if the borrower doesn't pay their property taxes, it becomes the investor's problem. They assume responsibility because they're a co-owner of the property.
First-Time Homebuyer Programs
Miami-Dade County offers first-time buyers a chance to own their own home at mortgage rates below market value.
The program makes mortgages more manageable for economically disadvantaged buyers who might otherwise be unable to buy.
Miami-Dade's Public Housing and Community Development works with local banks to general low-interest mortgages to keep the costs low.
Mortgage subsidies are also available for qualified buyers.
Buyers can only use the program once. But it's a great starter program. The minimum down payment requirement is between 1 and 3 percent, depending on the program.
The minimum down payment requirement is between 1 and 3 percent, depending on the program.
It also ensures that your loan payment (when combined will all other debts) doesn't cause your monthly payment to skyrocket or exceed 45% of your monthly income.
Homeownership Assistance Program Initiative
Another program run by Miami-Dade County targets first time and low/moderate income buyers by helping them cope with down payments and closing costs.
It comes in the form of a zero interest deferred loan. The idea is to lower the barriers to homeownership by reducing the administrative costs rather than property costs.
It also facilitates a quick sale by helping you qualify for better mortgages.
Buying your first home is difficult, but it doesn't have to be impossible.
The same is true when it comes time to sell your home.
If you're looking to make a quick sale, contact us today.