Homeownership has long been a cornerstone of the American Dream, but for many first-time buyers in Florida, soaring property prices have made this dream increasingly elusive. However, a recent update to the Florida Hometown Heroes housing mortgage program is set to change that. Announced by Governor DeSantis, the revised program now includes all qualified working residents, not just frontline workers, making homeownership more accessible than ever before.
Breaking Down Barriers
This Program is designed to help in-state workers purchase their first home by providing zero-interest loans to cover down payment and closing costs. For the 2023–2024 fiscal year, the program is funded with $100 million, allowing more Floridians to benefit from this initiative.
Florida’s median house price has skyrocketed to nearly $397,000, a 50% increase over the past five years. Meanwhile, household incomes have remained relatively stagnant, making it difficult for many first-time buyers to save for the necessary down payment and closing costs, typically ranging from 5% to 9% of the home’s price.
Substantial Financial Assistance
Approved buyers under the Program can receive up to 5% of their total loan amount (not exceeding $35,000) for down payment and closing costs. For example, on a $350,000 home, this translates to $17,500 in assistance. Even buyers purchasing homes for less than $200,000 will receive a minimum draw amount of $10,000, ensuring substantial support for all qualifying participants.
Eligibility and Requirements
To qualify for the Program, applicants must meet several criteria:
- Residency and Employment: Applicants must be full-time Florida residents employed by a Florida-based employer or corporation. Military veterans are exempt from the full-time employment requirement.
- First-Time Homebuyer: All borrowers must be first-time homebuyers, meaning they have not owned a home in the past three years.
- Loan Compatibility: The program can be used with Conventional, FHA, VA, or USDA loans, subject to meeting the respective loan program guidelines.
- Credit Score: A minimum credit score of 640 is required.
- Property Use: The property must be an owner-occupied primary residence, including single-family homes, townhomes, and FHA-approved condos. Land or lot purchases and refinance transactions are not eligible.
- Homebuyer Education: Borrowers must complete a HUD-approved homebuyer education course, with military personnel and veterans using a VA mortgage being exempt.
Income Limits
Household income must be less than 150% of the area’s median income to qualify. For example:
- Jacksonville: $132,750
- Miami: $154,800
- Tampa: $130,350
- Orlando: $131,700
Higher limits apply in high-cost areas, such as Monroe County, where the cap is $162,750.
Additional Details
The loan is structured as a non-amortizing, 30-year deferred second mortgage with 0% interest, payable upon selling or refinancing the property, or paying off the first mortgage. This assistance can be used for various costs, including the down payment, closing costs, pre-paid taxes and insurance, and principal reduction.
How to Apply
Given the program’s popularity and limited funds, interested homebuyers should act quickly. Applications can be started at any time, but interest rates cannot be locked until a fully executed sales contract is in place. To begin the process, potential buyers can call the provided number or submit an Info Request Form for a rapid response seven days a week.
You can also contact me any day of the week from 9 AM to 10 PM, and I will be more than happy to help you process all the necessary documentation to take advantage of this program.
This housing mortgage program represents a significant step toward making homeownership more attainable for first-time buyers across the state. By providing substantial financial assistance and expanding eligibility, the program is poised to help many Floridians achieve their dream of owning a home. All prospective buyers are encouraged to reach out and begin their journey towards homeownership today.