HILLSBOROUGH COUNTY, Fla. — A major mortgage company recently launched a zero-down program, showing that zero-down mortgage programs are making a comeback. But the question is, are they too good to be true?
This is something we dug into as part of our Price of Paradise series.
We continue to hear from viewers who say they want to buy a home, but it's just too expensive. For many people, the down payment is the biggest hurdle stopping them from buying. That's why a zero-down program is so attractive to many first-time home buyers.
“I think they’ve become so popular and such a hot topic right now because so many people are wanting to buy a home," Rob Pinion with Guild Mortgage said.
He explained that these programs can make buying a home a little more affordable right off the bat, which is what many buyers are desperate to do.
"Majority of the calls I get are from people saying, ‘Rob, this is how much I’m paying a month. How much house can I afford?'" said Pinion.
“There are a lot of frustrations for buyers," said Emma Pardo with Compass Real Estate.
Pardo said the zero-down programs draw in first-time home buyers who want to stop paying high rent in Tampa and start building equity.
“If you already have equity in a home, then you can take that equity and bring it to the next house. First-time homebuyers don't have that equity to utilize towards the purchase,” she said.
While the zero-down program may sound great, Pinion said there are a lot of restrictions and hoops to jump through with those programs.
“Some of them are income restricted, some neighborhood restricted, some local bond programs you have to be inside their city district,” Pinion said.
He told me it's not your safest bet, especially for Florida buyers. He is steering his clients toward a local program called Hometown Heroes.
Borrowers can get up to $35,000 in down payment assistance, and the program recently expanded to almost all working Floridians. There are some qualifications with this program, but Pinion said they are looser, and this program is a great option.
"There are just not as many little things to trip you up,” Pinion said.
Hometown Heroes will be reenacted on July 1. The key takeaway is to sit down with a trusted mortgage professional and go over all your options before making a decision.
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