In Florida, eligible individuals can apply for the Hometown Heroes Housing Program. This state-funded initiative aims to make homeownership more affordable for the state’s workforce. Additionally, it provides financial assistance for down payments and closing costs.
If you plan to secure a home in Florida one day, understanding how this program works is essential.
Who qualifies for a loan?
You can apply for the loan if you meet these qualifications:
- You are a first-time home buyer, except for active-duty military and veterans.
- You are a Florida resident working full-time for a state-based employer.
- Your household income must be below the specific limits set for the county where you are buying the home.
While the program can be open to all workers, this year’s funding is restricted to health care workers, educators, first responders, court employees, childcare workers, military members and veterans.
What kind of assistance is available?
If eligible, you can receive up to 5% of your first mortgage loan amount, with a minimum of $10,000 and a maximum of $35,000. This can help you cover down payments and closing costs.
The assistance has a structure of a 0% interest, non-amortizing second mortgage. While you are not required to make monthly payments, the loan is not forgivable. You must repay the balance if you sell the home, refinance the first mortgage, transfer the title or move out of the property.
Although this program can be a great help, it is subject to funding availability. The Florida Legislature allocates specific blocks of funding at a time.
What should you do to apply?
Applying for the Hometown Heroes Housing Program requires working with a participating lender. While there is no cost to apply, you need approval for a standard first mortgage.
Navigating the interplay between state statutes and federal lending rules can be tricky. To protect your interests and ensure your contract is sound, it is always wise to have a real estate attorney review your documents before you sign.
