Lisa Carey Real Estate Blog at Carey Cottage, Tallahassee

Low Monthly Payments with HOP

Recently I’ve had the good fortune of meeting with many first-time home buyers eager to enter the real estate market. And while the desire is there, sometimes the funding is not. So how did we get them into a home? HOP! The HOP program has helped me place many home buyers, and not all first-timers, into high quality new construction homes with only $500 down and very low payments.

The HOP program provides qualifying buyers with between 25% and 35% of the cost of the home as a no-interest, deferred payment loan. The buyer only makes payments on 75% of the cost of the home. And, closing costs can be rolled into the loan. The other 25% is like a silent second – it doesn’t accrue any interest, and no payments need be made until the home is no longer the buyer’s primary residence. The program is based on income and the number of residents destined for the home.

It is important to note that HOP homes can only be built by qualifying builders, including Russell Homes (www.BuiltByRussell.com) , and must meet certain criteria. The interior doorways are wider, thermostats and light switches are lower, and other criteria are standard throughout that make the home desirable at resale for those with physical disabilities. Refrigerators are always included as part of the sale, and currently Russell Homes is offering faux wood blinds throughout their homes. For buyers on a budget, those are two costly items.

For example, Russell Homes currently has an inventory home in Orion’s Point, Midway, Florida. See it as one of my featured listings on the home page www.CareyCottage.com . The home is built to HOP standards and currently listed at $159,900. It features three bedrooms, two baths, a two-car garage, inside utility room, vaulted ceilings, an architectural shingle 30-year roof, a James Hardie Board exterior, and tile in all wet areas. It includes a complete kitchen package and blinds in every window. If Russell Homes pays the buyer’s closing costs, a qualifying buyer can put $500 down and have a loan of only $124,000 to pay on. And, the HOP program offers very low fixed rates. A recent finance sheet from Laura Palmer Wells at People’s First showed a rate of 5.40% on a 30-year fixed. Using the same figures as above, the buyer’s payments would only be $931 including PMI, taxes and insurance. You can reach Laura at laurawells@peoplesfirst.com.

If you would like more information about the HOP program, please contact me at Lisa@CareyCottage.com or call me at (850) 212-3083. This may be your road to home ownership.