Attention Florida first-time homebuyers! The Hometown Heroes Housing Program is back and this time open to ALL qualified working residents.
Homeownership is a dream for many, but for many it can often feel out of reach. The Florida Hometown Heroes Housing Program aims to change that by making homeownership more affordable. It provides essential down payment and closing cost assistance to first-time, income-qualified homebuyers, helping them purchase their first primary residence.
In addition to expanding the program to include all Florida residents, this year work-from-home employees and self-employeed borrowers are also eligible. Self-employed borrowers must have a third-party confirmation of their full-time status
What's the deal then? You, the buyer, can recieve up to 5% of the first mortgage loan amount. You could potentially get up to $35,000, the program's cap. But guess what, you get a MINIMUM of $10,000 in down payment and closing cost assistance. Which means, borrowers with a loan amount of $200,000 or less receive an automatic $10,000. This assistance comes in the form of a 0%, non-amortizing, 30-year deferred second mortgage. It is important to note the second mortgage is due in full upon the sale of the property, refinancing of the first mortgage, transfer of deed, or if you no longer occupy the property as your primary residence. The Florida Hometown Heroes loan is not forgivable
It also offerrs you a lower-than-market interest rate on FHA, RD, Fannie Mae or Freddie Mac mortgages which make your monthly payments more manageable. You'll benefit from reduced upfront fees, which makes that initial cost of homeownership less daunting. The program also eliminates origination points and discount points, further reducing the financial burden on homebuyers.
So what do you need to qualify for assistance?
Must work full-time with a Florida-based employer. Meaning, the employer must have a brick and mortar location in Florida that you report to or work from. Veterans may be exempt from the full-time requirement, so contact me to find out more.
You do need to be a first time homebyer or not having had an ownership interest in your primary residence in the last three years, but there are some potential exemptions.
Have a 640 or higher credit score
There are some income limit requirements, so let's chat to see where you fall on that scale
The total loan amound cannot exceed the loan limits the county where you are purchasing your property
The loan must close 60 calendar days from loan reservation to loan purchase. Underwriter Certified anytime prior to closing.
It is important to act fast though! Only $100M has been allocated for this program. Fund open up July 1, 2024 and it is sure to go quick.
There's a lot of jargon going on up there, so let's get a little reference guide:
FHA: Florida Housing Administration home loan. Require a minimum 3.5% down payment which can from gift funds. The seller allowed to provide up to 6% of the purchase price for closing costs. You don't have to have perfect credit either. You can select either fixed and adjustable rates. A non-occupying borrower can help you qualify for the loan.
VA: Veterans Affairs home loan. With these loans you do not have to have private mortgage insurance, no down payment requirements on loan amounts below county limits and there are low down payment options for loans above the county limits. You get options with this loan: fixed-rates, adjustable rates, use for new purchases, use for refinancing, and flexible credit score options. Your closing costs are discounted and refinancing is streamlined.
RD: Rural Development home loan. Not just for farmers. It is a fixed-rate loan with no down payment requirement for qualified borrowers. You get more flexible credit score options and lower interest rates than conventional loans and lower mortgage insurance than FHA loans. Refinancing options are streamlined and up to a 6% seller contribution is allowed. Income limits and property location restrictions may apply.
Fannie Mae & Freddie Mac: Two institutions the finance mortgage loans and are typically conventional loans. There is a lot to be said about these institutions so look out for my blog post discussing this.
Origination points: represent the fees that borrowers pay to lenders or loan officers to compensate for evaluating, processing, and approving mortgage loans.
Discount points: A form of prepaid interest that you can buy to lower your interest rate. They are a one-time fee, paid up front when a mortgage is first arranged or during a refinance.
Non-amortizing loan: type of loan for which payments on the principal are made by lump sum. As a result, the value of the principal does not decrease at all over the life of the loan.
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