JACKSONVILLE, Fla. – There is simply no sugar in the market today for those looking to buy a home.

“It’s definitely riskier for people right now, and I know a lot of buyers are frustrated,” said Tanis Anderson, mortgage manager at First Coast News.

This, she says, is especially true for buyers with limited funds for a down payment or who have less than stellar credit histories.

However, she stressed that programs and strategies are available. It’s just that buyers need to be as nimble as ever.

“It really comes down to mitigating risk from a seller’s perspective,” Anderson said.

Game plans are plentiful, and in some cases, hopeful buyers combine strategies.

“The deals that win, we see serious funds bigger and make them non-refundable,” Anderson explained.

Earnest funds are essentially cash committed in advance that is used as a down payment. Making a winning offer might not ask for a huge amount of money, but the risk of making it non-refundable is that if the buyer pulls out of the deal, the potential seller can keep the money and move on. thing.

This means that some potential buyers with limited means must continue their research one home at a time.

“You have to really aim for a particular house and know you’re going to see it all the way through,” said Anderson, countering with “[Sellers] are more inclined to accept an offer with a lower down payment in a scenario like this. ”

“I see people who have lower down payments doing a fully subscribed loan approval,” Anderson continued.

Other concessions, including buyer’s waivers of appraisal and inspection, she said, are common – if not for the faint of heart.

“If you forgo an assessment or inspection quota, and all of a sudden you’re still doing the inspection just to find out what potential problems are popping up in the house – and you put in $ 10,000 – well, you may not be walking the property at that time, ”Anderson explained.

Anderson described a recent scenario that she says shows just how far some buyers are developing.

“The buyer chose – and it was a very strong offer, 20% less – but they also offered to pay the seller’s closing costs and the real estate agent’s commissions,” Anderson recalled.

However, not everyone has the funds to be this daring. Fortunately, there are many programs available, with varying eligibility. Anderson highlighted a few, starting with the Federal Housing Administration (FHA).

“It’s a government-backed loan program,” she explained. “And it’s made for people who have had credit problems in the past.”

One of the advantages of the FHA, she said, is that funds offered to a buyer by another party do not affect eligibility.

“One hundred percent of the three-and-a-half percent minimum drop can come from a gift from a parent,” Anderson said.

However, there is a downside, she added, that she’s been seeing her head stand up lately.

“FHA, for the most part, unfortunately, is going to be the first offer that is rejected because realtors know it’s usually someone who has had credit problems in the past,” Anderson said.

Another potential avenue is a loan from the United States Department of Agriculture (USDA), which Anderson says allows for 100% financing, subject to income restrictions. But with the added caveat that it is generally only available in rural communities.

“It’s also region specific, so not all countries offer USDA funding.”

For those who have served in the military, the Department of Veterans Affairs (VA) also offers programs, but Anderson cautioned against an ironic feature that can actually work against a candidate.

“The VA has a clause in the contract that allows a buyer to walk in if the house doesn’t do the appraisal,” Anderson explained.

Create a potential for mistrust at least in situations involving new construction, even if the buyer has waived the appraisal.

“The VA contract is going to replace that,” Anderson said. “The builders are worried that the house will not be appraised, and the buyer at that point can walk in and get their funds back.”

As if that weren’t enough, conditions have evolved to the point that programs that financially benefit buyers can hurt them when the time comes.

“This market, especially when you’re competing for cash, you have to be able to close in 21 to 25 days,” Anderson said.

She said that with assistance programs, the shutdown can take up to 60 days or more. This can be a huge deterrent for sellers who have to time the sales transaction with a purchase elsewhere.

“They have to go somewhere,” Anderson said. “If something fails for them, it completely ruins their new purchase.”

“While there are programs available there, unfortunately I don’t see a lot of them being accepted,” Anderson explained.

Having said that, this is not sadness and unhappiness, but simply a situation where many buyers have to combine the use of assistance programs with other strategies such as improving credit ratings. credit.

“There are lenders out there who are absolutely amazing and will give you little information,” suggested realtor Robin Zuckerman of Coldwell Banker Vanguard. “It may take 30 days for something to be erased from your credit, which will increase your credit score by a good amount.”

This can not only secure a loan, but also more favorable financing terms.

“Keep in mind,” Zuckerman continued, “the worse your credit score – even if you qualify for a certain type of loan – you will likely get a different interest rate, something a bit more. Student.”

Indeed, current market conditions could be a textbook case for buyers wishing to seek help from industry professionals.

“Being creative with your strategies and working with your loan officer and your real estate agent is huge in getting deals accepted,” Anderson suggested.

“Your agent is definitely your single source for all information,” Zuckerman agreed. “We know the market, we have the resources. Use us for that – that’s why we’re here.

Zuckerman explained that it’s imperative that buyers are realistic, as the market is always very much in favor of sellers.

“We can’t do miracles, but what we can do is give you the resources you need to at least be able to try and get things done,” Zuckerman explained.

Anderson provided the following information and links about the program:

Florida Housing offers down payment and closing cost assistance in the form of a second mortgage to help eligible homebuyers with their down payment and closing costs.

Down payment assistance is only available when used with Florida Housing’s first mortgage. Down payment assistance is not available as “stand-alone” down payment assistance. Florida Housing offers the following down payment assistance programs to eligible buyers:

Florida Assist (FL Assist) is another program that offers up to $ 7,500. This is a second 0% deferred, non-amortizing mortgage.

FL Assist is not forgivable. Repayment is deferred except in the event of a sale, transfer, settlement of the first mortgage, refinancing of the property or until the mortgagor ceases to occupy the property, at which time Florida Assist will become due. and payable, in full.

The second mortgage loan from the Florida Homeownership Loan Program (FL HLP) offers up to $ 10,000. This is a second mortgage that is fully amortizing 3% over 15 years.

The second FL HLP mortgage has a monthly payment. The remaining unpaid capital balance (UPB) is deferred, except in the event of sale, transfer of a deed, settlement of the first mortgage, refinancing of the property or until the mortgage debtor (s) cease to act. occupy the property as the buyer’s primary residence at that time, the second FL HLP mortgage will become due and payable in full.

Since the second FL HLP mortgage has a monthly payment, this payment may need to be factored into the borrower’s debt-to-income ratio (DTI) when the loan is taken out.

Borrowers using the HFA Preferred and HFA Advantage PLUS second mortgage down payment and closing cost programs receive 3%, 4% or 5% of the total loan amount in a forgivable second mortgage.

This second mortgage is forgiven at 20% per annum over its 5 year term when used with conventional Florida Housing HFA Preferred for TBA or HFA Advantage for first mortgage products at TBA. The second “PLUS” mortgage is only available with these conventional first mortgage products.

The Statewide Veterans and Active Duty Military Home Ownership Program can utilize the Hi Our Soldiers Military Loan Program which offers a 30 year fixed rate first mortgage below the rate and several down payment and closing cost assistance options are available.