8% Mortgage Rates Loom: How Downpayment Assistance Eases the Burden
POLK COUNTY, Fla. — In a real estate landscape marked by low inventory, soaring prices, and increasingly higher mortgage interest rates, the dream of owning a home can feel out of reach for many first-time buyers. However, there are programs in place to lend a helping hand to individuals and families striving to make homeownership a reality.
Leisha Thompson, a loan underwriter with the Housing and Neighborhood Development Services of Central Florida (HANDS), highlights the common obstacle faced by prospective buyers. “Generally, your homebuyers can afford a mortgage payment. They don’t have the down payment that the lender requires and the closing costs,” she explains. “So, we commonly refer to our program as ‘the gap’; it closes the gap between the purchase of the home and the buyer’s inability to put down the down payment and closing costs. And that’s what we do.”
HANDS plays a vital role in making this possible, as it is contracted by the City of Lakeland and Polk County to operate the program. This initiative utilizes state grants provided through Florida Housing’s State Housing Initiatives Partnership program (SHIP).
Thompson points out that each county and city in Florida has the autonomy to design and run its program according to its unique needs and priorities.
In Polk County, the program offers substantial assistance tailored to income levels. Thompson explains, “Very low-income households receive $30,000 in down payment assistance, low-income individuals $20,000, and moderate-income buyers $15,000. Additionally, they receive $6,000 in closing costs for moderate-income buyers, while low-income and very low-income buyers receive $8,000.”
However, it’s essential to note that not all lenders collaborate with the program. Once a first-time homebuyer is approved and mortgage-ready, they should verify if this assistance is available through their chosen lender.
For a limited time, Pinellas County has raised its Down Payment Assistance to $50,000-$75,000, based on income.
Thompson acknowledges that navigating today’s real estate market, with mortgage interest rates nearing 8%, can be daunting. Nevertheless, she encourages prospective buyers to seek assistance and explore every available avenue.
“We offer a host of other services here at HANDS of Central Florida. One of those is credit counseling,” Thompson highlights. “We want you to reach out to us free of charge. Pre-purchase counseling is what we call it, and all that information is available on our website at no cost. You can apply directly on our website. The most important thing I want viewers to understand is not to get discouraged. Right now may not be the ideal time for you, and that’s perfectly okay.”
This year alone, Thompson’s team has assisted over 50 families in achieving homeownership, a testament to the program’s positive impact. She shares feedback from lenders who emphasize the vital role this assistance plays in enabling buyers to achieve their dreams. “I have lenders that I work with daily who say that if their buyers did not qualify for this assistance, they would not be able to purchase a home—hands down. It’s very rewarding,” Thompson concludes.
In a challenging real estate landscape, programs like these serve as beacons of hope, making homeownership accessible to a broader range of aspiring buyers in Polk County and beyond.
