Hometown Heroes Program
The Florida Hometown Heroes Housing Program makes homeownership affordable for eligible community workforce.
How Does The Hometown Heroes Program Work?
The Hometown Heroes program provides down payment and closing cost assistance up to $35,000. Eligible borrowers receive 5% of their total loan amount in assistance when purchasing a home in the community where they work. This assistance can be used for down payment, closing costs, pre-paid tax and insurance escrows, and upfront mortgage insurance premiums.
The loan is a 30-year, non-amortizing, deferred second mortgage with 0% interest. Buyers do not pay any interest or monthly payment on the assistance amount. The payment is made when the home is sold, refinanced, the mortgage loan amount is paid off, or the homeowner no longer occupies as their primary residence.
Hometown Heroes Program Benefits
The Hometown Heroes program reduces the upfront costs that can often become a barrier for first-time homebuyers. Benefits include:
- You can use it with an FHA, VA, USDA, or conventional mortgage
- Lower than market interest rates
- Reduced upfront fees
- No origination points
- Up to $35,000 in down payment and closing cost assistance
Hometown Heroes Eligibility Requirements
The eligibility for the Hometown Heroes program has adjusted over time. Currently, to qualify homebuyers must meet the following criteria:
- Employment: Buyers must work 35+ hours a week and hold full-time employment with a Florida-based employer. For self-employed borrowers, additional documentation and requirements are available.
- First-Time Homebuyer: Borrowers are not eligible if they have owned a primary residence in the past 3 years.
- Primary Residence: The borrower must live in the home they are buying as their main residence within 60 days of closing.
- Property Type: Single-family residences, townhouses, condos, villas, and structures with 2-4 units are all allowed. Manufactured homes are eligible with adjusted qualifications.
- Homebuyer Education: Borrowers must attend an approved Homebuyer Education course.
- Credit Score: Buyer must have a minimum 640 credit score.
- Debt-To-Income Ratio: Borrowers must fall below the maximum debt-to-income ratio of 50%.
- Income Limit: Borrowers must meet certain income requirements. They must earn below 150% of the area median income.
- Your Mortgage Lender: Homebuyers must work with one of Florida Housing’s participating loan officers.
This program provides down payment and closing cost assistance to first-time, income-qualified homebuyers so they can purchase a primary residence in the community in which they work and serve. The Florida Hometown Heroes Loan Program also offers a lower first mortgage interest rate and additional special benefits to those who have served and continue to serve their country.
Program Details:
- Eligible full-time workforce, employed by a Florida-based employer can receive lower than market interest rates on an FHA, VA, RD, Fannie Mae or Freddie Mac first mortgage, reduced upfront fees, no origination points or discount points and down payment and closing cost assistance.
- Borrowers can receive up to 5% of the first mortgage loan amount (maximum of $35,000) in down payment and closing cost assistance.
- Down payment and closing cost assistance is available in the form of a 0%, non-amortizing, 30-year deferred second mortgage. This second mortgage becomes due and payable, in full, upon sale of the property, refinancing of the first mortgage, transfer of deed or if the homeowner no longer occupies the property as his/her primary residence. The Florida Hometown Heroes loan is not forgivable.
Links:
Homebuyer Loan Programs Wizard (please click here to connect with a loan officer in your area and get started.)
Broker/Owner: Gregg Amaral~ 561-596-6992~gregg.amaral@yahoo.com
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