Closing Funds for First Time Home Buyers in Apopka Florida
First time home buyers often have the most flexibility when it comes to closing funds. Many first time buyer mortgage programs allow funds to be gifted from certain sources. This can allow buyers to purchase a home sooner rather than waiting to save up enough funds on their own. If you’re in this situation, here’s what you need to know about closing funds for first time home buyers in Apopka Florida.
Mortgage Programs and Options
FHA is one of the most popular first time home buyer programs. It allows for a low down payment of just 3.5% and offers somewhat lenient qualification requirements. The most appealing feature of FHA loans is that down payment funds can be gifted. Other first time home buyer programs also allow gifted funds. Some even offer down payment assistance grants or the ability to borrow up to 100% of the purchase price. Consult with your local loan officer for information on such programs.
For FHA loans, gifted funds for first time home buyers must come from an approved source. These include family members, an employer or labor union, a charitable organization, or a government agency. The funds must also be clearly documented when gifted. In other words, there must normally be a bank statement showing the funds in the giver’s account, a copy of the gift check, verification that gifted funds reach the buyer’s account, and a gift letter confirming that the funds are indeed a gift rather than a loan.
Buyer’s Personal Funds
Documentation must also be provided for any funds that come directly from the home buyer. For example, if a buyer is using personal savings, several months of bank statements must be provided. If investment funds are the source, investment account statements will be required. This is typically required for all types of mortgage loans and not just first time home buyer programs.
More on Closing Funds for First Time Home Buyers in Apopka Florida
First time home buyers in Apopka Florida need not until they have saved up enough closing funds for a huge down payment on a mortgage. During that wait time, it could become more difficult to buy as home prices and interest rates continue to rise. It’s important to know that options are available with special programs and the ability to use gifted funds.
Where to Start?
If you’re a first time home buyer and are evaluating when you should purchase your first home, give us a call. We can connect you with a local loan officer for a free mortgage pre-approval. We can also provide valuable information on the local real estate market to get you started on your home search. We look forward to assisting you!