Florida Legislation Helps First Time Buyers

Author:	Lucas Jones
Source:	Homes Discovered
Date:	April 27, 2006

The Florida Legislature has created The Florida Housing Finance Corp to implement state and federal affordable housing programs.  The Housing Finance Corp has $77 million available this year as the first installment in a program to be used for low-interest mortgages.  The agency is typically used to help first-time buyers get into homes. Last year, Congress passed legislation easing the rules to help certain counties realing from hurricane damage.  The first-time buyer requirement is being waived and income limits raised.  These changes are an effort to help a larger number of middle and working class people.  As the price of land, construction, and other market forces rise, many people are still being priced out of homes. The real estate market has softened and is more of a buyers market now but home prices have not gone down and are not expected to.  Many out of state buyers are shocked that they sold their single-family home but can't afford one in South Florida. The new legislation eases restrictions and offers 30-year, fixed-rate mortgages at below-market rates for buyers who qualify.  The standard mortgage rate is 5.59 percent but teachers, police officers, health care workers, veterans, and firefighters can qualify for a 5.34 percent rate.   Eligible applicants also can receive assistance with down payments and closing costs.  Under the program, the purchase price of a home cannot exceed $525,090. After years of skyrocketing real estate prices, many buyers are spending more of their incomes on a home.  Many spending as much as 50 percent of their income.  Experts reccomend spending no more than a third of a family's income on a mortgage, insurance, and taxes.

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