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Most first time home buyers need or would love to get assistance from
the seller in paying closing costs...we specialize in that! We will
get as much closing costs form the seller as your lender will allow.
Lenders usually allow 3% - 6% of the purchase price to be contributed by
the seller. Contact us for mortgage
pre-qualification to learn what your closing costs could be and how much
you are allowed to get from the seller. **The
following Down Payment Assistance Programs are currently not available
in Hillsborough County in 2007** However, we can get you financed
with a 100% loan if you do not have money for down payment (this does
not cover all closing costs).
Get up to $60,000 in down payment assistance when buying a home in
Hillsborough County.
If you think you would like to use down payment assistance or a first
time home buyer program, contact us.
We will gladly walk you through the steps.
Here you will find
information on
three government programs. The SHIP
Program (State Housing Initiative Partnership), Florida Assist Program
and
HAMI (Homeownership Assistance for Moderate Income).
We have provided information on these programs below, however, due to
changes in program guidelines, you should not rely on this information.
Contact us for help with these down payment
assistance programs.
What Is The First Time Home Buyer Program?
Hillsborough County’s First Time Home Buyer Program provides
Down Payment Assistance, Closing Cost Assistance and Homeownership
Education. These funds are provided by Hillsborough County through the
State Housing Initiatives Partnership (SHIP) Program and through the
HOME Investment Partnerships (HOME) Program. This assistance is provided
in the form of a 0% interest, deferred payment loan (DPL). This simply
means that there is no interest accrued and no payments are made during
the life of the loan. The DPL is a second mortgage with a 30 year term.
If ownership is maintained for the full term of the loan, then the
second mortgage with Hillsborough County is forgiven and repayment is
not necessary.
Who Is Eligible For This Program?
To qualify you must be a first time home buyer in unincorporated
Hillsborough County, Temple Terrace or Plant City; and your total
household income must be 120% and below the area median income. In
addition you must meet all of the requirements described below.
What Are The Requirements?
- You cannot have owned a home within the last three years.
- Household income must be 120% and below area median income for
unincorporated Hillsborough County (See table below). All Household
income must be included in calculation. Income from children under the
age of 18 is excluded.
- You must attend a 25 hour mandatory FTHB Education class.
813-261-5151.
- Must be able to qualify for a first mortgage loan.
- A minimum down payment is required, but all prepaid amounts such
as appraisal, application fees, and inspection fee are counted as part
of your minimum down payment.
- You must put down a minimum of $500 if your income is 50% or below
of area median income. You must put down a minimum of $1,000 down if
your income is below 80% of the area median income. If your income is
above 80% area median income, you must put down 2% of the purchase
price.
If I Participate In The First Time Buyer Program, Do I Have To Live
In A Specific Area?
You are not limited to specific neighborhoods. To qualify you must
purchase a home in unincorporated Hillsborough County, Temple Terrace or
Plant City. However, if you choose to purchase a home in one of the
designated Community Development Block Grant (CDBG) Target Areas, $5,000
of your total assistance will be considered a grant that does not
require repayment.
How Much Money Will I Receive?
The total assistance you receive depends on your income level and the
total amount needed for down payment and closing costs. You will earn a
certificate for $50,000 or $60,000 depending on your income. This amount
is not guaranteed.
Can I Buy Any Home? What Types Of Homes Are Eligible?
All types of housing units are eligible for this program. These
include single family homes, condominiums and townhomes. Modular homes
that have a Department of Community Affairs (DCA) seal are eligible.
This seal is a special designation, and not the same as Housing & Urban
Development (HUD) approved.
The cost of the home cannot exceed $226,000, and must be located in
unincorporated Hillsborough County, Temple Terrace or Plant City. If you
purchase a home in the City of Tampa, similar programs are
available...contact us for details.
Do I Have To Re-Pay This Loan To The County?
This loan is considered a 30-year second mortgage. If you sell the
property within the first three years, the County will retain 50% of any
additional value that the property has gained since you bought it. This
shared equity component is added to provide an affordability period of
time. After the first three years, the County will not retain any equity
in the home.
The down payment assistance loan will need to be repaid to the County
if...
you sell the property or transfer the title, you no longer live at the
property, you refinance the property for cash-out, you refinance with
cash out or equity line. The First mortgage loan may be refinanced for a
reduction in interest rate on a one-time basis without penalty.
What Are The Acceptable Loan Types?
Acceptable loan types are FHA, VA and Conventional loans from a
private lending institution within 2% of the current market rate.
Income/debt ratios are not to exceed 31/43; any exceptions must be
approved by the County. Adjustable Rate Mortgages (ARM’s) or interest
only loans are not permitted however, buy-downs are permitted.
How Do I Get Started?
The following steps are necessary to get started in the First Time
Home Buyer Qualification Process:
- Get approved with a First Mortgage Lender (we can do this for you
through Manhattan Mortgage Corporation).
- Attend the FTHB education class.
- Find a home and submit purchase contract to the FTHB program for
approval.
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