Mortgage Confusion? Here are the Best Resources for Homebuyers in Miami

A recent study by Fannie Mae revealed a surprising lack of confidence among consumers about the mortgage process.

There’s good reason to feel a little cautious. Here in Miami, home prices have risen 30% since 2020, and mortgage rates have also climbed. However, homeownership remains a top priority for most, with many considering it a sound long-term investment.

All of this can lead to feeling overwhelmed and unsure of your ability to qualify for a home loan. The good news is there are options available—options you may not even be aware of.

So today, we’ll discuss some different mortgage resources available here in Miami.

Challenges When Navigating the Mortgage Process

Fannie Mae’s study found that many consumers are unaware of important aspects of the mortgage process, which creates additional hurdles.

Here are the top three challenges consumers face due to knowledge gaps:

• Lack of confidence: Less than half (45%) of consumers would feel confident going through the mortgage process. That number drops to 38% for those who are actively home shopping.
• Overestimating minimum down payment: 90% of consumers either don’t know or overestimate the minimum down payment required for a typical mortgage.
• Misestimating minimum credit score: Only 32% of consumers know the approximate minimum credit score required by mortgage lenders (the FICO minimum score required is 620). The remaining either overestimate or underestimate this number.

The study also found that just 32% are “somewhat” or “very” familiar with low down-payment programs, and 40% are aware of mortgage counseling services available.

To make sure that you have all the information you need, keep reading for mortgage resources available here in Miami.

Mortgage Resources in Miami

Low Down Payment Assistance Programs

You may know that a 20% down payment isn’t required, but how low can you go? In some cases, as low as 0-3% down. Here are some programs available in Miami:

1. FHA Loans
   • These loans are backed by the Federal Housing Administration and require a minimum down payment of 3.5%.
2. VA Loans:
   • Available to veterans and active military members, VA loans offer 0% down payment.
3. USDA Loans:
   • For rural and suburban homebuyers, these loans offer a 0% down payment.

4.  

   Miami-Dade County’s Public Housing and Community Development (PHCD) Program:

   • Provides assistance to first-time homebuyers with low to moderate incomes.
   • PHCD Homeownership Program

5. Florida Housing Finance Corporation (FHFC) – Florida Assist Program:

   • Offers up to $7,500 in down payment assistance for eligible borrowers.
   • Florida Assist Program

6. City of Miami First-Time Homebuyer Program:

   • Provides financial assistance to eligible first-time homebuyers to purchase a home in the City of Miami.
   • City of Miami Homebuyer Assistance

7. Broward County Homebuyer Purchase Assistance Program:

   • Offers deferred payment loans for down payment assistance to qualified buyers.
   • Broward County Purchase Assistance

8. Housing Foundation of America, Inc. – Down Payment Assistance Program:

   • Offers assistance to first-time homebuyers throughout South Florida.
   • Housing Foundation of America

9. Miami-Dade Economic Advocacy Trust (MDEAT) Homeownership Assistance Program:

   • Provides up to $7,250 in assistance to eligible first-time homebuyers.
   • MDEAT Homeownership Assistance

10. Neighborhood Housing Services of South Florida (NHSSF):

    • Offers down payment assistance and homebuyer education programs.
    • NHSSF Down Payment Assistance

Mortgage Counseling Services

Housing counseling or mortgage counseling services are also available to help you prepare your finances and get ready for the costs of home ownership.

1. Freddie Mac Borrower Help Centers: Freddie Mac Help Centers
2. HUD’s Participating Housing Counseling Agencies: HUD Counseling Agencies

Professional Lenders

Reading about these programs and services online is one thing, but I always recommend speaking with a knowledgeable, trusted professional to gain a deeper understanding of all the resources available to you. Let me know here if you’d like my list of vetted mortgage lenders, and I’ll send them right over.

Remember, the key to a successful homebuying experience is knowledge and preparation. By getting the right support system in place, you can turn your dream of homeownership into a reality.