Homebuying Assistance For First Time Home Buyers!
You've Earned Help Buying Your Next Home!
Hometown Heroes Program Changes in 2023
As a community-driven initiative, the Hometown Heroes Program has been instrumental in recognizing and supporting the local heroes who make a significant difference in our lives.
Now this program has been expanded to help make the dream of home ownership available to more Florida residents! Effective July 1, 2023, the front line heroes job requirement for the program has been removed, opening it up to all Florida residents that have never owned a home OR have not owned their primary residence in the last 3 years! The grant has also been increased from $25,000 to $35,000. The maximum downpayment assistance you can receive is 5% of the home's purchase price.
What is the Florida Hometown Heroes Program?
The Florida Hometown Heroes Program is a down payment assistance program that helps working Floridians buy a home. The program is now available to all working Floridians, not just frontline heroes.
The maximum down payment assistance amount has increased from $25,000 to $35,000. The down payment assistance is offered as a 0%, non-amortizing, 30-year, repayable second mortgage…which means you do NOT have to make any payments on the loan for 30 years or until you sell the home! To make this possible, the State of Florida has provided an additional $100 million in funding for the 2023-2024 fiscal year. I expect those funds could be depleted by early next year, if not sooner.
More good news! The program typically covers your home purchase typical closing costs!
To be eligible for the program:
- Homebuyers must be a first-time homebuyer, or have not owned their primary residence within the last three years,
- Must have a minimum credit score of 640,
- Earn less than 150% of the area median income for their county. In Palm Beach County, the 2023 Median income of the population is $98,300 (per HUD) so for eligibility in the first-time homebuyer, your total gross family income can not exceed $147,450. Other counties will have different limits,
- Be employed by a Florida-based employer, or locally self-employed. Self-employed buyers would need to have their company registered through Sunbiz.org or provide their most recent 1099 to qualify.
- Purchase a home in the community where they work and serve.
Homebuyers can apply for the program through our sister company, Florida Funding. If approved, the lender will provide the down payment assistance funds at the time of closing.
It is important to note that meeting the requirements does not guarantee acceptance into the program, as funding availability, credit worthiness, as well as debt and income requirements may also be a factor.
What are the different mortgage options available under the program?
The Florida Hometown Heroes Program offers a variety of mortgage options, including:
- FHA loans - FHA loans are insured by the Federal Housing Administration (FHA). They have more lenient credit score requirements than conventional loans.
- VA loans - VA loans are guaranteed by the Department of Veterans Affairs (VA). They offer 100% financing, so you don't need a down payment. They also have no monthly mortgage insurance premiums (MIP).
- USDA loans - USDA loans are guaranteed by the United States Department of Agriculture (USDA). They are available to borrowers who purchase homes in rural areas. They offer 100% financing, and they have no monthly MIP.
- Conventional loans - Conventional loans are not insured or guaranteed by the government. They typically require a down payment of at least 3%, and interest rates tend to be higher than FHA or VA loans.
The specific mortgage options that are available to you will depend on your individual circumstances, such as your income, credit score, and the type of property you are buying. You should work with a qualified lender to determine which mortgage option is best for you.
The process for the Florida Hometown Heroes Program is as follows:
- Contact Larry Newcomer who will connect you with a representative of our sister company, Florida Funding,
- Apply for the program – Florida Funding will review your application and determine if you are eligible.
- Then we will search for homes that meet your criteria. Then, assuming you are approved for the program, you can make an offer on a home. The lender will need to approve the loan before you can close on the home.
- Reserve the funds - Once the lender approves the loan, you will need to reserve the funds. This means that you will need to pay a reservation fee. The reservation fee is typically 1% of the down payment assistance amount.
- Close on the home - Once the funds are reserved, you can close on the home. The lender will provide you with the down payment assistance funds at the time of closing.
Act now! The process typically takes 30-60 days. However, the process may take longer if there are any delays in the underwriting process.
Maximum loan amounts apply. Currently the maximum loan allowed is $557,750 for FHA/USDA loans or $726,200 for conventional and VA loans.
Need more info? Contact me to discuss and I can connect you with one of the specially certified loan officers for the Hometown Heroes Housing Program.
* Must meet eligibility and qualification requirements. Not everyone will qualify.