First-Time Homebuyer Tips for Orlando

Buying your first home in Orlando is exciting, but it can also feel overwhelming. With mortgages, down payment help, and picking the right neighborhood, there’s a lot to consider. At Diamond Real Estate Group, we want to make things easier for you. Here’s a step-by-step guide for first-time homebuyers in Orlando.

1. Get Your Financial House in Order

Set Your Budget

Start by figuring out how much you can afford. Look at your income, expenses, and savings. Remember to include extra costs like property taxes, insurance, and HOA fees.

Pre-Qualify for a Mortgage

Getting pre-approved gives you a clear idea of what you can afford and signals to sellers that you’re serious. Many lenders offer low-down-payment mortgages for first-time buyers, such as FHA loans or conventional programs combined with state assistance.

Learn About Local Assistance Programs

Orlando offers several programs to help first-time buyers:

• The City of Orlando Down Payment Assistance Program may provide up to $45,000 in down payment and closing cost help. Eligibility depends on income and registered lenders.

• Osceola County’s Purchase Assistance Program under SHIP provides interest-free second mortgages to first-time buyers.

Before applying, note that many programs require a pre-purchase education workshop. For example, the City of Orlando requires completion of a homebuyer course through a HUD-approved agency.

2. Explore First-Time Buyer Mortgage Options

There are several mortgage types and incentives that may benefit you:

• FHA Loans: These are popular among first-time buyers due to lower down payments.

• Mortgage Credit Certificate (MCC): This program from the Florida Housing Finance Corporation (FHFC) gives eligible first-time homebuyers a tax credit based on their mortgage interest.

• Deferred Second Mortgages: Some assistance programs come in the form of a second loan that doesn’t require payments if you stay in the home for a set period (often 10 years).

3. Choose the Right Neighborhood

Orlando offers a variety of neighborhoods that are great for first-time buyers, whether you want a lively city feel or a quieter suburban vibe. Consider:

• Commute & Lifestyle — How close do you want to be to work, parks, or entertainment?

• School Districts — Research public schools if you plan to stay long-term.

• Growth Potential — Some neighborhoods are up-and-coming, indicating potential for value appreciation.

4. Understand the Costs Beyond the Mortgage

Buying a home isn’t just about your monthly mortgage payment. Other costs to plan for include:

• Homeowner’s insurance and property taxes

• Closing costs (which can be partially covered by down payment assistance)

• Moving, repairs, and maintenance

• Homeowners Association (HOA) fees, if applicable

Build these into your budget so there are no surprises.

5. Work With the Right Professionals

A great team is key to a smooth first-time purchase:

• Realtor: Choose someone experienced with first-time buyers in Orlando — like a member of Diamond Real Estate Group.

• Mortgage Lender: Use a lender that’s “city-registered” if you want to apply for Orlando’s Down Payment Assistance Program.

• Housing Counselor: Required by some assistance programs and helpful for understanding budgeting, program eligibility, and closing.

6. Apply for Down Payment Assistance

Here’s what to know about applying:

1. Contact a registered lender: For Orlando’s DPA program, your lender must be registered with the city.
2. Complete a housing education workshop: Required by the City for approval.
3. Submit your application: You’ll need to provide proof of income, credit history, and savings.
4. Lock in your first mortgage: Once the assistance is approved, you will close on your first loan + the city’s second mortgage (if applicable).

7. Navigate the Closing Process

Once you’re approved:

• Review all loan documents carefully.

• Confirm your closing costs, including how much of them are covered by assistance.

• Ensure you meet the terms of any second mortgage (for example, living in the home for 10 years to have it forgiven)

After closing, you’ll be a homeowner! Congratulations — you’ve unlocked a major milestone.

8. Take Advantage of First-Time Buyer Benefits

After purchasing, don’t forget to:

• Use tax credits from MCC if you qualify.

• Keep an eye on your local housing authority or city programs for future home improvement or refinancing support.

Ready to Get Started?

If you’re a first-time homebuyer in Orlando, Diamond Real Estate Group is here for you. We’ll help you navigate neighborhoods, lenders, and incentive programs with confidence.

📩 Contact us to schedule a free buyer consultation today.

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