Florida Hometown Heroes
Program Update: Expansion to All First-Time Homebuyers as of July 1, 2023
The Florida Hometown Heroes Housing Program is dedicated to making homeownership more attainable for eligible community workforce members. As of July 1, 2023, the program has broadened its eligibility to include all first-time homebuyers, while also increasing the grant amount from $25,000 to $35,000.
This initiative specifically supports first-time, income-qualified buyers by providing assistance with down payments and closing costs, facilitating the purchase of a primary residence in their work communities. Additionally, the Florida Hometown Heroes Loan Program offers lower interest rates on first mortgages and additional benefits for individuals who have served or are currently serving in the military.
Key Program Details
- Eligibility: Full-time employees of Florida-based employers can apply. They may benefit from below-market interest rates on various mortgage options, including FHA, VA, RD, Fannie Mae, and Freddie Mac loans. The program also includes reduced upfront fees, with no origination or discount points required.
- Down Payment and Closing Cost Assistance: Borrowers can receive assistance of up to 5% of the first mortgage amount, capped at $35,000, helping to alleviate initial home purchase costs.
- Deferred Second Mortgage: This assistance is structured as a 0% interest, non-amortizing, 30-year deferred second mortgage. Borrowers do not need to make regular payments on this loan; however, it becomes due under certain conditions, such as when the property is sold, the first mortgage is refinanced, or if the homeowner no longer resides in the property as their primary residence. Importantly, this loan is not forgivable and must be repaid according to the program’s terms.
The Florida Hometown Heroes Housing Program is designed to help community workforce members achieve their homeownership goals while recognizing their valuable contributions to society.
Overview of the Florida Hometown Heroes Program
The Florida Hometown Heroes Program is a mortgage initiative aimed at making home buying more affordable for frontline workers in Florida. MortgageQuote.com proudly participates in this program. If you’re interested, you can apply now.
Eligibility Criteria:
- Minimum credit score of 640 (660 for manufactured homes).
- Maximum loan-to-value ratio up to 97%, with combined loan-to-value ratios up to 105%. Specific criteria may vary for manufactured homes and multi-unit properties.
Support for Frontline Workers: Saving for a mortgage can be challenging amidst rising living costs. In 2022, the average monthly mortgage payment in Florida was $1,530. The Hometown Heroes Program provides essential support for frontline workers, making homeownership more accessible.
Program Benefits
Eligible frontline workers can enjoy:
- Lower-than-market mortgage rates on FHA, VA, RD, Freddie Mac, and Fannie Mae loans.
- Discounted upfront fees, with no origination or discount points.
- Down payment and closing cost assistance up to 5% of the first mortgage loan amount, with a maximum of $35,000.
- 0% interest, non-amortizing, 30-year deferred second mortgage for assistance, repayable under specific conditions.
Mortgage Product Options
The Hometown Heroes program offers five mortgage products, including:
- Florida First Heroes: Available through FHA, VA, and USDA-RD, providing 30-year fixed-rate mortgages with automatic down payment support.
- FL HFA Preferred Heroes – Fannie Mae: Offers 30-year fixed-rate mortgages for applicants earning less than 80% of the median income, with down payment assistance.
- FL HFA Advantage Heroes – Freddie Mac: Similar benefits for eligible applicants, allowing access to 30-year fixed-rate mortgages with assistance.
Who is Eligible?
As of July 1, 2023, the program has expanded to all first-time homebuyers, including various frontline occupations.
Eligible Professions Include:
- Law enforcement officers, firefighters, emergency medical personnel, healthcare workers, educators, and many more essential roles.
Income Limits: Vary by location, with 2022 limits ranging from $118,950 to $153,750.
Loan Limits: FHA & USDA loan limits for 2022 range from $420,680 to $710,700, while Conventional and VA loan limits are set at $647,200 (with exceptions for Monroe County).
Homebuyer Status: First-time buyers must not have owned a primary residence in the last three years. Active military personnel and veterans are exempt from this requirement.
How to Apply
To apply for a Hometown Heroes mortgage, applicants must provide documentation confirming their occupation, homebuyer status, and income. Key documents may include:
- Fully executed Hometown Heroes Housing Loan Program attestation.
- State certification or license.
- Employment verification.
Ensure you meet the eligibility criteria before applying to avoid rejection.
Conclusion
The Florida Hometown Heroes Program aims to help frontline workers achieve homeownership by providing a range of mortgage options and financial assistance. By offering lower rates and support for over 50 professions, the program plays a crucial role in making homeownership more accessible in Florida.
FAQ
What is the Hometown Heroes Program? A mortgage initiative that supports frontline workers in purchasing homes affordably.
Who is eligible? Over 50 professions are included, such as healthcare workers and teachers, with specific income and property limits.
What are the main benefits? Lower-than-market mortgage rates and financial assistance for down payments and closing costs.
How do I apply? Gather required documentation to confirm eligibility and complete the application process. Check requirements thoroughly before applying.
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