Did You Know You Only Need a 0% Down Payment to Buy a Home?

Did You Know You Only Need a 0% Down Payment to Buy a Home?

  • The Premier Property Group
  • 06/22/23
Walking along beautiful, white sand beaches along the Florida Panhandle, gulls circle overhead and emerald green waves crash onto the shore. What a place to call home!

Does owning your own piece of Blue Mountain Beach real estate seem like an impossible dream? It’s no doubt that you’ve felt your homeownership dreams slip through your fingers as you’ve heard stories of rising home costs, soaring inflation, and high interest rates.

However, there’s good news for you! Homeownership is not only within reach, but there are a handful of loan options that may allow you to purchase a home for sale in Blue Mountain Beach with a lower down payment.

First, let the Live Love 30A | Destin team, brokered by The Premier Property Group, provide an overview of what to expect in Blue Mountain Beach real estate. Then, read on to explore a few options for gaining your own little piece of this coastal paradise with a lower down payment.

The allure of Blue Mountain Beach real estate

Growth seems unstoppable in the 30A area. Just ask any resident! There’s a reason real estate seekers are drawn to the stunning coastline from all over the world. With its gorgeously blue lupine flowers, endless beaches, sand dunes, unique restaurants, and chic boutiques, there is so much to love and explore in Blue Mountain Beach. This tranquil beach town is no stranger to the sunshine, with an outdoor-focused ambiance and a number of beach access points that promise a serene day on the shores. The community is also home to Big Redfish Lake and Little Redfish Lake, the perfect place for a jog, a dip in the water, or a kayaking adventure.

Across the nation, 2022 was a year of vacillation and uncertainty as we continued to heal from the effects of the pandemic, an unprecedented housing boom, and mortgage rates that just kept rising. The local housing market reflects some of this roller coaster ride, with listing prices and the number of homes on the market shifting throughout the year. Thus far, 2023 has been a time of stabilization, of returning to “healthy” growth — more gradual, perhaps, but also much more predictable and sustainable.

On the Blue Mountain Beach real estate landscape, you can find Gulf-front coastal paradises, charming cottage-style abodes, family homes with several stories, and upscale condominiums with all the amenities. The single-family properties here are quite spacious, promising plenty of room to entertain, private decks or balconies, fenced yards, screened-in front porches, and top-of-the-line features throughout. If you’re seeking a gated community, Blue Mountain Beach is also home to the luxurious Village at Blue Mountain Beach, which offers a community shuffleboard court, fitness center, outdoor pool, and more.

If all of this sounds appealing, read on to learn about a few loan options that will enable you to put down less for a lovely home in this incredible area.

0% down payment options

VA loans

Are you an active-duty or retired military personnel? Are you the widow of a service member who gave his or her life for our country? You may qualify for loan assistance through the United States Department of Veterans Affairs. Eligibility for this loan has very specific guidelines, but if you are eligible, you can get a mortgage with a 0% down payment and low interest rates.

In summary, these are the factors you need to know:
  • VA loans require supporting documentation, so gather your recent bank and investment statements, W-2s for the past two years, two years of tax returns, and recent paycheck stubs.

  • You’ll also need a Certificate of Eligibility from the VA. You may obtain this online, by mail, or via your lender.

  • While VA loans don’t ask for down payments, you will be assessed a funding fee, typically in the amount of 0.5% to 3.6% of the loan.

  • You must work with a VA-approved lender.

Other low down payment options

If you do not qualify for a VA loan, you may have other options you can look into. Buyers may be eligible for a down payment as low as 3 or 3.5%. Overall, it’s important to seek guidance from a trusted mortgage broker to receive advice for your specific situation and goals.

Conventional loan options

Conventional loans are administered through private lenders and are not backed by the government. While 20% is typically believed to be the gold standard for down payments, as it eliminates the requirement for private mortgage insurance, buyers may be able to move forward with a less considerable down payment if they meet specific criteria.

To qualify for a conventional loan, a credit score of 620 is typically required. First-time buyers may be eligible for a down payment as low as 3% as long as they meet the income requirements. Also, for most conventional loans, your debt-to-income ratio must be no more than 50%.

FHA loans

First-time home buyers who have lower credit scores may look into FHA loans, which are backed by the Federal Housing Administration. As long as your credit score is at least 580, FHA loans allow for as low as a 3.5% down payment. In addition, your debt-to-income ratio must typically be below 45%.

Florida programs

The Florida Housing Finance Corporation also coordinates a few homebuyer programs aimed at making homeownership more attainable. Through these programs, buyers may qualify for a 30-year fixed-rate first mortgage loan and down payment assistance through a second mortgage program. To qualify, buyers must have a credit score of at least 640, work with an approved lender, complete a buyer education course, and meet income requirements.

Florida Assist Second Mortgage Program (FL Assist)

Through FL Assist, buyers can receive up to $10,000 on conventional, VA, or FHA loans through a 0% deferred second mortgage. These funds can be put toward a down payment. Monthly payments are not required through this program, but the loan is non-forgivable.

Florida Homeownership Loan Program (FL HLP)

The FL HLP enables buyers to receive $10,000 as a 3%, fully amortizing second mortgage over a 15-year term. Monthly payments are required, and the mortgage must be paid upon selling the property or refinancing.

Florida Hometown Heroes Housing Program

If you are a healthcare professional, firefighter, law enforcement officer, childcare employee, teacher, active military member, or another frontline worker, you may qualify for the Florida Hometown Heroes Housing Program. The program offers down payment assistance wherein eligible first-time buyers can receive 5% of their first mortgage back in down payment and closing cost assistance.

Your best resource

For top-notch advice throughout your real estate journey, team up with a true professional who has extensive experience helping homebuyers just like you in the 30A area. A knowledgeable local real estate team will guide you to the perfect Blue Mountain Beach home you’ll be proud to call your own.

If you want to work with the very best, the Live Love 30A | Destin team, brokered by The Premier Property Group, is highly esteemed in the Destin and 30A area for unparalleled service, insightful market knowledge, and exceptional expertise. The team also has an extensive list of trusted mortgage lenders and a working knowledge of the various home loan options that may work for you. Don’t hesitate to give them a call; that perfect Florida panhandle property certainly won’t wait!

*Header photo courtesy of the Live Love 30A | Destin team, brokered by The Premier Property Group

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Our team of luxury real estate experts provides the highest level of sophisticated customer service through every step of the real estate transaction. Whether our clients are looking to buy or sell exclusive multi-million dollar properties, they trust Live Love 30A|Destin to ensure the success of their real estate goals.

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