Explore Options for Gainesville, Florida Loan Programs

Explore Options for Gainesville, Florida Loan Programs

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Home to the University of Florida, the City of Gainesville is considered one of the most attractive places to live in the country because of its thriving economy, good schools, beautiful neighborhoods, natural surroundings, and friendly people. The market for real estate is quite competitive, so you need to be organized in every aspect of your search for a home or investment property, especially in financing. Gauntlet Funding has put together an overview of Gainesville, Florida loan programs that may lead to the house of your dreams.

Conventional Gainesville, Florida Loan Programs

Everyday home buyers in Gainesville, Florida, will be most interested in conventional mortgage loans. These loans are typically available from commercial banks, credit unions and more traditional lenders and generally require clean credit scores, plus income and employment verification and a down payment of up to 20% to qualify.

A second category involves assistance from the federal government, either through guarantees or direct loans. The guarantees help bring home buying within reach of a larger population as they allow commercial lenders to work with people who may have lower incomes and credit scores. The programs focus on three groups: The general public with lower incomes, veterans and their families and individuals living in rural areas. Here’s a rundown of these three government programs:

  • Federal Housing Administration (FHA) Loans provide what is essentially insurance for mortgages to lower-income households. To qualify, homebuyers need a credit score of at least 580 with a 3.5% down payment on the price of the home. You can become eligible with a lower credit score, but you will have to make a down payment of at least 10%.
  • Veterans Administration (VA) Home Loans target the housing needs of current and former military personnel and their families. The VA offers both direct home loans, where the federal agency serves as the lender, and VA-backed home loans where the VA guarantees a portion of the purchase price through a commercial lender.
  • U.S. Department of Agriculture Loans aim to help individuals (not just farmers) find safe and suitable housing in specified rural areas. Buyers must meet certain income eligibility requirements and ensure that their home sits within an area designated as rural.

Down Payment Assistance in Gainesville

Locally, the City of Gainesville offers a way to get you started on purchasing a home within the city limits. The city’s Down Payment Assistance program provides the potential for up to $15,000 toward the down payment and closing costs. You will still have to put some of your own money down on the property and obtain a loan from a certified lender.

To qualify, interested home buyers must first attend city-organized workshops that describe the home-buying process from beginning to end. Attendance is required to earn a certificate of completion. The program targets low-income buyers seeking property to own and occupy as their principal residence.

Gainesville Private Money Loan Programs

Investors and real estate developers are also an essential part of the market for housing loans in Gainesville, Florida. These professionals propose projects that bring new housing onto the market through renovations or new construction and sometimes need capital on an expedited basis. Private money loan programs can come in handy for these purposes, and the team at Gauntlet Funding is here to assist.

You will hear these loans described as “bridge” loans. Here is a rundown of what we offer in terms of short-term loan programs:

  • Fix-and-flip loans, which fund housing renovations and have been made popular through reality television. These loans are typically satisfied when the renovated home sells.
  • Rental loans, which are similar to fix-and-flip loans with one exception: They are secured with the cash flow from prospective tenants and finance the cost of renovations.
  • Construction loans, which cover materials and labor that go into building construction. Like fix-and-flip loans, the proceeds of the home sale allow the developers to pay back the loan.

Hard money loans are secured by the value of the underlying properties as collateral. That’s in contrast to conventional loans, which rely on income and employment levels to establish the person’s ability to repay the loan. Because hard money loans have shorter repayment terms, they typically come with slightly higher interest rates to account for increased risk. Also, because the collateral for hard money loans is the value of the property, the loans typically close more quickly than conventional loans.

About Gauntlet Funding

The team at Gauntlet Funding has extensive experience for all your home loan requirements, with a focus on private money lending and distressed asset funding. Gauntlet has offices in New York and New Jersey and also provides loans for projects in Gainesville and other parts of Florida. Our team is ready to help. Give us a call or reach out online for a consultation.


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