My New Blog

Many people find it difficult to save money. In most cases it is easier to save money if you own a home than it is to rent. If you are renting, your rent increases every time your lease comes up for renewal but if you have a fixed rate mortgage on your home the only part that can increase is your homeowners insurance premium or your property tax. Also, your income taxes may be lower when you are a home owner than when you are renting depending on your individual tax situation. In addition, the interest rate you pay on your auto loan or your credit cards may be lower when you are a homeowner. Getting into your first home is the most difficult. After the first home is sold you can use the proceeds to cover your down payment and closing on the next home.

Statistics say that an average home these days is around $250000.00. A 5% down payment would be $12500.00. That is not a small chunk of change! In addition, your closing cost and pre-paids will average about 4.5% of the sales price which is another $11250.00. Some loans will allow you to finance-in your closing cost which makes your payment higher. Sometimes a seller or builder will pay 3% in closing cost for the purchaser but financing companies will not allow them to pay your down payment. That is when we all could use a fairy godmother.

Putting fantasy aside for a moment, there are some organizations that can help. There are five organizations listed below. In addition to those there are the Florida Bond Loan Program, Homesteps, FirstStep, SHIP, and others. Some of these programs may be extinct after November 1, 2007. FHA is trying to prevent private non-profit organizations from providing assistance to borrowers.

If you have been thinking about buying a home but don’t have the resources for your down payment or closing don’t wait until it’s too late. In order to be eligible for these programs there is usually a class on home ownership that you are required to attend before selecting a home. You also need to be preapproved by a loan company for financing prior to selecting a home. Contact me and I will give you the names of some loan originators that specialize in these type of programs.

FHA Loan Down Payment Grants

The AmeriDream program offers gift funds up to 10% of the home's purchase price which do not have to be paid back. Buyers must agree however, to return any funds that are not used toward down payments or closing costs and to return the funds if the sale of the home does not close on the scheduled closing date.


The Nehemiah program is a Private California Non-Profit Organization that offers down payment assistance programs to qualified first time and repeat homebuyers. This programs offers free gift funds to be used toward down payments and closing costs for homes purchased through eligible FHA loan programs.


The Housing Action Resource Trust (HART) Program is a 501c(3) non-profit Housing and Community Development corporation that helps potential homebuyers purchase homes by offering down payment assistance programs to those with low and moderate incomes.


Depending on the seller's contribution toward a home purchase, Consumer Debt Solutions, Inc. (CDS) can gift up to $10,000 of the final sales price of a home. Since all the money awarded is in the form of gift funds, it does not have to be paid back.


The Partners in Charity (PIC) is a non-profit corporation that offers financial assistance through programs for qualified low and moderate income homebuyers. Down payment and closing cost assistance is provided as gift funds from 2% to 10% of the home price.

What will be required for me to pre-qualify for an FHA home loan?
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There are many factors you will need to pre-qualify for an FHA loan. You should be able to demonstrate employability, job stability and reliability. This reliability includes holding a steady job for at least two years with the same company or employer and increasing or at least consistent income. Any foreclosures on your record should be at least three years old. The same applies for bankruptcy. The FHA loan bottom line—make sure you can demonstrate that you have been a good risk for two years or more and you will have a much better chance at pre-qualifying for an FHA loan.

For more information on pre-qualifying for down payment assistance contact one of the following organizations:

Housing Partnership Northeast Florida - Barbara Britton - 904-398-4424

AmeriDream - Chuck Hammett - 1-866-263-7437

Family Foundations - David Antico- 904-396-2228 Ext: 174

Wachovia - Penda Tyson - 904-798-6441 or 904-704-9856 or Penda.tyson@wachovia.com

Countrywide - Carolyn Loven - 904-448-9330

SunTrust Mortgage - Bob Gallagher - 904-381-4330 or 904-571-5069 or bob.gallagher@suntrust.com

EverBank - Jeff Lowry - 904-623-8295 or jeff.lowry@everbank.com

In addition, I am always available to answer any questions you may have. I can also assist you with a list of properties available that suit your needs. Almost all foreclosures are listed in the MLS. It is much more convenient to work with one agent and see all the available properties than it is to call 20 different agencies to try and schedule a previewing. It is frustrating to answer the same questions over and over again but it is our job as agents to do a certain amount of prequalifing in order to protect the sellers interest. So choose an agent that you feel comfortable working with early in your house hunting and you will have a more pleasant home buying experience. I can be reached at 904-573-9638 or bkgravitt@comcast.net.

Brenda Gravitt CRS, GRI

Coral Shores Realty

Serving the Jacksonville, FL area.