To Buy, or Not to
Buy;
by Roane Beard
There are few things as exciting as buying your first home. It’s a step into another world, one free of landlords, rent, and upstairs neighbors. Unfortunately it’s also a world filled with mortgage payments, and stepping across the line from renter to home owner means dealing with banks, closing costs, and thirty year payment plans. It’s a stressful step, and one that keeps many people renting for years.
But it doesn’t have to be that way.
“A lot of people don’t realize that you don’t need that much cash to get into a home,” says Reneé Wilhoit, the branch manager at Regions Mortgage, Inc. on West Cedar Street. “If you meet certain income requirements, and haven’t bought a home in the last three years, you’ll be surprised about how easy it is.”
Regions Bank is one of a group of lenders participating in the Escambia County Housing Finance Authority 2001 Bond Program. The program is similar to those offered by many North Florida counties, and is designed to help first time home buyers get a low-interest mortgage on houses they can afford.
“It’s called a loan for first time home buyers, but that’s misleading,” says Reneé. “You also qualify for the program if you haven’t bought a home in the last three years. So it’s really open to a lot more people than just first time buyers. And even then, if you have bought a home in the last three years, you still may be able to qualify for the program. The county is trying to encourage growth in specific areas, like downtown and North Hill, so they’ve set aside those areas as special zones where anyone can qualify for the loan, provided that they meet the other restrictions. That means even if you just bought a home a few years ago, you can get a low-interest loan to move into one of the special zones.”
There are some restrictions on the loan. You must live in the home; you cannot rent it out. You can, however, sell whenever you want. There are also restrictions on your family’s income level, and on the sale price of the home you wish to purchase. These restrictions vary on whether or not the home is new or pre-existing, and whether or not it’s in one of the special zones in which the county is trying to encourage growth.
“It’s such a great deal for people who qualify,” says Reneé. “You’ll probably end up saving $10,000 on your loan. There’s also a second mortgage option that’s designed to help cover closing costs. It’s a non-interest bearing silent second mortgage, up to $2,500. You don’t have to pay it off until you pay off the first mortgage, whether that’s at the end of the loan or when you sell the house. It is subject to its own sales price and income limits, but it’s a way lower income families can cover the costs of closing. I’ve seen people come in here and get a loan with no money down.”
To apply for the loan, contact an authorized lender, such as Regions Mortgage. You’ll go through the regular loan application process. Once you complete that, she’ll check to make sure your family’s income level and the sales price of the prospective home are within the guidelines set out by the program. If you want to apply for the second mortgage to cover closing costs (a good idea if you qualify), she’ll help you apply for that as well.
To find out more about the Escambia County Housing
Finance Authority’s 2001 Bond Issue call Reneé Wilhoit at 435-7711, or toll
free at (888) 613-7451.