Buying a home is not only the American dream, it’s also a vehicle for accumulating wealth. Unfortunately, the path to homeownership isn’t always easy – especially in today’s market. Between high-interest rates, closing costs, and pre-paid expenses, buyers are facing more affordability challenges than ever before. However, saving for the down payment is always one of the most difficult steps, and it often requires years of saving before you can finally land a home. Not to mention the importance of having extra cash on hand after closing to cover any unexpected repair costs.
Luckily, many first-time buyers have another option available. There are programs in Volusia County that offer financial assistance to first-time buyers who meet certain income requirements. If you’re in the market for your first home, make sure to check out these affordable housing programs:
The Homebuyer Assistance Program
Also known as HBA, the Homebuyer Assistance Program’s goal is to provide first-time buyers with purchasing assistance and closing costs. The program, which is funded by numerous local and state organizations, offers a zero-interest, deferred payment loan for a term of up to 15 years. In order to qualify, the home must be located in Volusia County (Daytona Beach and Deltona are not eligible communities). Assistance is also limited within Edgewater, Pierson, Port Orange, and Oak Hill, and the home price cannot exceed $323,000
Neighborhood Stabilization Program
To incentive buyers to consider Neighborhood Stabilization Program (NSP) homes, Volusia County has a program that offers a deferred payment loan to eligible households. This loan is for down payment assistance, gap financing, and closing costs on NSP homes.
NSP homes are located in unincorporated Volusia County and they’re owned by the county for the purposes of neighborhood revitalization. They’re not available for sale to investors or cash buyers. These homes do appear on the MLS website, and they’re made available on a first-ready basis to buyers who have received a commitment letter from Community Assistance.
Owner-Occupied Rehabilitation Program
Coming up with the funds to purchase a home is just one problem first-time buyers face; however, having cash on hand for repairs and upgrades is also important. Whether it’s for housing rehabilitation, demolition, reconstruction, or emergency repairs, Volusia County’s Owner-Occupied Rehabilitation Program has a housing rehabilitation program that can provide funds for structural and mechanical issues.
The maximum assistance available is $20,000, and it’s only available for immediate health or safety issues related to HVAC systems, septic tanks, well water, roofs, or accessibility improvements. Phone interviews are required as part of the application pre-screening process.
The home must be located in Volusia County (except Daytona Beach and Deltona are not eligible), the property value cannot exceed $323,000, and other exclusions apply.
Income Requirements
To qualify for any of these three programs, your household has to fall within the Area Median Income requirements. This means your income must be somewhere between $27,100 and $71,850 depending, but your actual cap depends on the location of the home and the size of your household
Buying your first home is never a walk in the park, but community assistance programs can make it easier. If you’re a first-time buyer in need of help, having an experienced real estate agent in your corner can make all the difference. Contact Palmetto Realty today. We’ll provide one-on-one personal attention and walk you through every step of the process.