Cape Coral in Florida, with golden sand beaches, marinas, and plenty of attractions, is a great place to purchase your first home. If you are browsing listings, you’ve likely encountered first-time homebuyer programs and wondered whether you will qualify.
In this blog, we’ll explore what credit score you need to qualify for a first-time homebuyer program in Florida.
Credit Score Requirements
Numerous first-time homebuyer programs are available in the Sunshine State, but you’ll find that most of them will require a credit score of at least 640. For those with lower credit scores closer to 600, programs like USDA loans for rural areas may be a better option.
If your credit score is not quite at 640, there are some things you can do to grow your score before applying. These include:
- Setting up automatic monthly payments
- Make your payments on time
- Pay off your debts as quickly as you can
- Pay your credit cards in full each month or keep your outstanding balance to less than 30% of your total credit limit
You should regularly review your credit score by requesting a report from national credit bureaus like Experian, Equifax, and TransUnion.
Top First-Time Homebuyer Programs to Use
With so many options, how do you know which program is the best? The answer will generally depend on what benefits you’re after, but below are the top three programs to consider.
Florida Housing Homebuyer Loan Program
This program helps connect first-time buyers to several mortgage programs, such as FHA, VA, and USDA loans. It’s especially beneficial if you’re looking for affordable 30-year fixed-rate mortgages.
To qualify, you will need:
- A credit score of 640 or higher
- To complete the provided homebuyer education
- An income no greater than the limit for your area
Hometown Heroes
Hometown Heroes is a down payment assistance program that returned in July this year. Provided by the Florida Housing Finance Corporation, it is available to first-time buyers in Florida. If you do qualify, you can receive a loan up to 5% of your mortgage with below-market interest rates.
To qualify, you will need:
- A credit score of 640 and up
- Be a full-time state employee
Florida Assist
This down payment assistance program is available to first-time buyers in the state. With this program, you don’t have to save up for years to cover the down payment, which ranges anywhere from 5% to 20% of the mortgage. This loan can help up to $10,000 of your down payment as a deferred second mortgage.
To qualify, you will need:
- A credit score of 640 and up
- Must use a Florida Housing 30-year mortgage
Apply for a First-Time Homebuyer Program
If you’re ready to take the next step to homeownership in Cape Coral, reach out to the team at Island Coast Mortgage. We can help you apply for a homebuyer program best suited to your needs. Schedule your consultation by calling us at 239-214-7011.
