City of Pensacola Florida

HTTP://WWW.THE-BEST-OF-FLORIDA.COM

Jeannette Spencer of

877-461-9907 toll free for Pensacola Real Estate, Pensacola Residential or Pensacola Commercial Real Estate

 American Recovery and Reinvestment Act of 2009 includes several home-buying incentives. Here are three examples:

• Homebuyer Tax Credit – The bill provides an $8,000 tax credit that is available to first-time homebuyers for the purchase of a principal residence from Jan. 1, 2009 through Nov. 30, 2009.  The credit does not require repayment.

  How to get the $8,000 credit

• FHA, Fannie Mae and Freddie Mac Loan Limits – The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac and Fannie Mae loans.

  Check out the loan limits in your county

• Neighborhood Stabilization - The bill provides $2 billion in additional funding for the Neighborhood Stabilization Program (NSP).  The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties.

  Learn more

Another home-buying incentive program is the Florida Housing’s First Time Homebuyer Program (FTHB). Qualified first-time buyers may receive a 30-year fixed interest rate mortgage loan through a network of participating lenders and lending institutions. Florida Housing also offers down-payment and closing-costs assistance to eligible borrowers, which can greatly reduce out-of-pocket expenses for the buyer. Even people who are not first-time buyers may be eligible for this program if they purchase a home in a specially designated target area. This program uses income and purchase price limits to determine eligibility.

Learn more

More opportunities for first-time homebuyer grants

Local and regional incentive programs are available throughout the state. Some Florida counties and cities offer special financing assistance for low- or moderate-income buyers, especially those purchasing their first home. For information, talk with your local Board, a local lending specialist or go to your county government Web site.

Attractive mortgage rates

Attractive mortgage rates Mortgage interest rates in 2009 hover at historically low levels, providing a tremendous financial advantage for buyers with good credit. For example, the monthly principal and interest payment on a 30-year, fixed-rate mortgage of $100,000 at 5.5 percent would be about $570 – well below the cost of renting in most Florida markets.

“The Fed’s action to slash interest rates, coupled with the actions by the Federal Housing Finance Agency and the Department of the Treasury, has driven down interest rates to make the dream of homeownership once again attainable for thousands of Americans,” says Charles McMillan, president of the National Association of Realtors® (NAR).

In a boon for investors, Fannie Mae also changed its current limit of four financed properties per borrower to allow five to 10 financed properties per borrower, when eligibility requirements are met.

The Federal Housing Administration also has increased the maximum mortgage loan limit. As a result, FHA-backed loans are growing in popularity and now make up about 30 percent of new mortgage originations, according to NAR.

More on FHA loans

More on Fannie Mae’s Expanded Multiple Mortgages Policy

FHA mortgage limits in your area

Other Financing Options

Florida buyers have other options for financing a home, depending on their individual situation. One effective approach is seller financing: asking the current owner to hold a first or second mortgage in order to complete the sale. That means the seller would receive a steady stream of income (the mortgage payment plus interest) over the years, rather than an immediate lump-sum payment.

Some Florida employers offer housing assistance programs for relocating employees. This may be an option to explore in cases where the buyer is taking a new job with a large company, hospital or other organization.

A third approach is to see if the buyer has other assets, such as an income-producing property, a business, boat or recreational vehicle (RV) that could be used as security for a mortgage loan.

Smart home-financing resources