Greg Snow - Southwest Florida Real Estate Expert provides real estate services to Cape Coral, Fort Myers, Sanibel and Captiva Islands

Our first time entrants into the home buying process are perhaps the largest contingent thanks to lower prices and low interest rates. In order for them to be successful in acquiring best deals on a mortgage. There many ways to obtain favorable financing. Let’s look at some. 

There was $571 million in tax exempt bonds in October that Florida approved following the passage of the federal Housing Economic Recovery Act of 2008. Any eligible borrower have certain criteria to meet, but making money available at low interest rates for first time buyers with low and moderate income will bring many smiles to happy individuals. This will also trigger state-funded down payment assistance to further expand those smiles. A good reference page is floridahousing.org.

The same Housing and Recovery Act includes a $7500 tax credit for first time home buyers on the purchase of a home over $75,000 up until A pril 9, 2009. Currently the tax credit needs to paid back over a 15 year period in equal installments, however, stay tuned in for a possible extension past April and maybe total or part forgiveness of this credit by the new administration in D.C. to get our housing economy going again. Often a first time buyer is interpreted as someone whose has not owned a home in last three years.

Then we have the FHA loans. The maximum raises to $625,500 for the Federal Housing Administration limit. Some current trade offs are raising the downpayment from three(3) percent to % 3.5 and eliminating seller contributions.

Buyers should also work with professional Realtors who may know of other avenues to get the deal done. Seller offering first or second mortgages, Florida employers offering housing assistance for a reloacting employee, business lines of credit,  and often  when prequalifying for an FHA or Va loan, some of the downpayment can be used to offset current debts to improve credit score to achieve the best interest rate available.