STEPHEN THAGGARD: A Fresh Approach To Low Down Payment Mortgages
By Space Coast Daily // August 6, 2017
SALES MANAGER OF EMBRACE HOME LOANS
BREVARD COUNTY, FLORIDA – Most of my working hours are spent with new buyers seeking some sort of financing for their first home here in Brevard County.
Many have similar concerns of not having enough funds, or so they believe, for this most important purchase in their lives. As home prices continue to rise and interest rates slowly increase, it places a burden on homebuyers who haven’t saved the traditional 20 percent down payment our parents and grandparents saved for in the past.
This brief overview shares a little of what we discuss with potential first time buyers as we navigate options, some of which they didn’t even know were available, while purchasing their first home.
The bulk of funds needed for mortgage financing are down payment and closing costs. These are just a few of down payment options buyers should consider. Our commitment at Embrace Home Loans is to offer several options allowing the buyer to choose their best approach while helping to alleviate the overall amount of funds needed.
These include Conventional, FHA and VA loans as well as several assistance programs we provide through Florida Housing Finance Authority and Brevard Housing Finance Authority.
First time buyers with strong credit histories and credit scores can take advantage of Conventional financing. And no, you do not need a 20 percent down payment for Conventional loans these days.
Down payments can be as low as 3 percent and sellers can contribute towards buyers closing costs creating a great benefit for well qualified first time buyers.
All funds needed for this Conventional approach can be from savings and/or a “Gift” from a relative. Buyers can also consider the values of Fannie Mae’s HomeReady and Freddie Mac’s HomePossible programs where the mortgage insurance payment is lower, creating an even lower monthly payment.
The Federal Housing Administration (FHA) has insured loans since 1934 and remains a popular option for first time buyers who need a credit flexible approach in addition to a low down payment.
FHA loans require a minimum down payment of only 3.5 percent and sellers can contribute towards the buyers closing costs (up to 6 percent is allowed).
And all the funds needed for an FHA loan can come from savings or a “Gift” from a family member, employer, or even a documented close friend. Did you know even the Lender can participate in contributing towards closing costs?
$0 DOWN PAYMENT FOR VETERANS
Veterans seeking VA loans are my personal specialty for the past 20 years. Qualified Veterans can purchase a home with a $0 down payment, up to a maximum $424,100 here in Brevard County.
And VA loans are one of the best programs with respect to flexible credit. We have helped Veterans purchase their new homes after they suffered a previous VA loan default. Also, sellers can contribute towards the Veteran’s closing costs, and the closing costs are less than other programs. If needed, all funds can be “Gifted” from a family member as well.
The last programs I will briefly go over are the down payment assistance programs we offer at Embrace Home Loans through the Florida Housing Finance Authority and the Brevard County Housing Finance Authority.
Qualified first time buyers can receive assistance from a $15,000 2nd mortgage with a 0 percent rate (no monthly payment) that is forgivable at the rate of $3,000 per year.
So, after 5 years it can be fully forgiven. This program provides the funds needed for down payment and can include some or all of the closing costs needed, depending on the Sales Contract price.
This very popular program is expected to last until perhaps the end of this year, and is available for qualified buyers seeking Conventional, FHA or VA financing.
SPACE COAST DAILY TV: Bobby Freeman, host of the Space Coast Daily Real Estate Show, talks with Embrace Home Loans’ Sales Manager Stephen Thaggard. Embrace Home Loans has opened a new Viera location and held a Grand Opening and Ribbon Cutting last May.
FIRST TIME BUYERS PROGRAM
First time buyers in Brevard County should be aware of all of the programs available so they can make an informed decision on that first big purchase.
Although saving money in advance of buying is important, there are so many low down payment financing programs each buyer should consider before resigning a Lease agreement and handing over their hard earned money to the landlord. Save as much as you can of course and remember you shouldn’t need 20 percent.
Owning a home is the American Dream and we continue to provide sound solutions for our Brevard County first time buyers with an abundant source of mortgage loans all to help relieve the stress of overall out-of-pocket expense.
I believe first time buyers should keep more of their savings, after they have received the keys to their new home.
To reach Thaggard at Embrace Home Loans call 407-733-6425 or e-mail firstname.lastname@example.org
ABOUT THE AUTHOR
Stephen Thaggard is the Sales Manager of Embrace Home Loans in the Viera, Florida office. He has worked in the mortgage industry for the last 21 years and focuses on assisting builders, Realtors and home buyers with Florida mortgage options and solutions. Thaggard, a member of the Embrace Home Loan President’s Club since 2014, is also a member of FAMP – Florida Association of Mortgage Professionals and MBA – Mortgage Bankers Association.
ABOVE MAP: Embrace Home Loans’ new location at at 5500 Murrell Road, Suite 201, in Viera will hold a Grand Opening and Ribbon Cutting on Thursday, from 5 p.m. to 8 p.m.
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