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ESCAMBIA COUNTY, Fla. – April 28, 2010 – Buyers may not always get the best mortgage deal if they don't ask the right questions. While a number of lenders participate in local affordable housing programs, they might not automatically offer their lowest mortgage rate/lowest downpayment option to a buyer.

The programs vary by county and have different rules for approval. But in some counties – Indian River, Martin, Okeechobee and St. Lucie counties, for example – a client does not have to be a first-time buyer to qualify for a 4.79 percent mortgage rate and up to $8,000 in downpayment assistance amortized for twenty years at 0 percent. In those counties, a family with at least three members qualifies if the household income is less than about $82,000.

A total of 24 counties – many in the Panhandle – participate in the same plan, though the details vary by county. Most individual programs apply only to first-time homebuyers, for example, and have different maximum household incomes, though none are less than $67,000 per household. The program currently has $12 million in funding

"Realtors ask me, 'Why have I never heard of this program?'" says C.J. Pipkins, Escambia County HFA Housing Program Director. "Many times, the lending agent doesn't realize the program exists. While it's not difficult to find a lender that participates in the program, many times they don't offer it to the buyer if the buyer doesn't specifically request it." HFA stands for Housing Finance Authority.

Lenders also have a financial incentive not to immediately offer qualified buyers government-backed mortgage programs: In most cases, the lender makes less money on the loan. Participating lenders vary by county and program, but the 24-county program includes big names like Bank of America and Wells Fargo.

"We have 20 participating lenders in our program," says Pipkins. "When a potential homebuyer contacts one of these lenders, he should request a loan officer that has been trained in the program and been given an access code to register loans."

Since counties and cities have unique mortgage requirements, homebuyers many times must hunt for an affordable mortgage. Pipkins suggests that buyers outside her 24-county area start by contacting their local Housing Finance Authority. They should also conduct an Internet website search.

For more information on the 24 counties served by the Escambia County Housing Finance Authority and the applicable rules for loans, visit their website at: http://www.escambiahfa.com.
 
© 2010 Florida Realtors^®