This program provides down payment and closing cost assistance to first-time, income-qualified homebuyers so they can purchase a primary residence in the community in which they work and serve. The Florida Hometown Heroes Loan Program also offers a lower first mortgage interest rate and additional special benefits to those who have served and continue to serve their country.
Eligible full-time workforce, employed by a Florida-based employer can receive lower than market interest rates on an FHA, VA, RD, Fannie Mae or Freddie Mac first mortgage, reduced upfront fees, no origination points or discount points and down payment and closing cost assistance.
Borrowers can receive up to 5% of the first mortgage loan amount (maximum of $35,000) in down payment and closing cost assistance.
Down payment and closing cost assistance is available in the form of a 0%, non-amortizing, 30-year deferred second mortgage. This second mortgage becomes due and payable, in full, upon sale of the property, refinancing of the first mortgage, transfer of deed or if the homeowner no longer occupies the property as his/her primary residence. The Florida Hometown Heroes loan is not forgivable.
No. Effective with all reservations made on or after July 1, the former occupational requirements will no longer apply.
No. Borrower(s) must work 35 hours or more a week to qualify. Lenders will need to obtain a VOE or paystubs that reflect 35 hours or more a week.
Borrowers that work at a brick and mortar location of employer can confirm with the Employer Address located on page 1 of the 1003.
Borrowers that work from home can confirm employer is a FL based business through the FL Division of Corporations @ www.sunbiz.org IF employer’s registration reflects a Principal Address located in FL
Self-Employed borrowers can provide a copy of their 1099 validating contracted employer is a FL based company if 1099 reflects the Payer’s company name and address is located in FL.
Self-Employed borrowers that file a Schedule C can confirm a FL based company if the Schedule C reflects a proprietor’s business address located in FL.
Max 50% but MH and manual underwrites have a max DTI of 45%.
No. FL Housing does not require an asset test.
Lenders should use the entire amount of eligible subsidy. The eHousing reservation system will auto calculate 5% of the total loan amount for the HTH Second Mortgage. The HTH Second is 0%, non-amortizing, deferred second mortgage.
Yes. Veterans that provide a valid DD214 with a discharge status of other than dishonorable can qualify.
If utilizing the BOND HTH Program, active military personnel and Reserve members must qualify as a first time buyer by providing the last three years’ tax returns or transcripts (or a combination of the two) or a VOR or copy of lease.
If using the TBA HTH Program, active military personnel and Reserve members would qualify as a first time buyer when they provide a copy of their LES or SCRA.
No. Originators must have a primary residence in FL in order to participate.
Obtain a copy of most recent paystubs (4-6 weeks) or a copy of work schedule or copy of contract validating 35 hours or more a week.
Other than veterans, all borrowers must currently work 35 hours or more a week to qualify.
Originators are required to have 4 PURCHASED loans within a 6-month period. FL Housing updates their website every January and July.
Yes and no.
Yes. If using the BOND HTH Program, all borrowers (including the spouse even if not on the loan) must provide confirmation of first time eligibility through their last three years’ tax returns or transcripts (or a combination of the two) or a VOR or copy of lease.
No. If using the TBA HTH Program, the borrowers must complete the Declarations Section of the 1003 accordingly.
Co-signors are permitted with FHA and Fannie Mae’s HFA Preferred only.
Co-signors income will NOT be considered in household income for the BOND HTH Program since they do not occupy the property.
Co-signor income IS considered in the TBA HTH Program since co-signor income is considered in the AUS approval.
No. The 80% AMI income limits determine if a borrower(s) is eligible for reduced cost mortgage insurance. Refer to the HTH income limits to determine borrower(s) meet income limits for HTH.
Borrower(s) that have income that is at or below Fannie Mae and Freddie Mac’s 80% AMI limits (which are used in determining borrower’s eligibility for reduced rate mortgage insurance), would qualify for charter MI coverage AND a lower first mortgage rate.
Borrower(s) income that exceeds 80% AMI would receive standard MI and a higher first mortgage rate. Remember: lower AMI (80% AMI or below) = lower first mortgage rate and lower MI costs. Higher AMI (80% AMI and above) = higher first mortgage rate and higher MI costs.
Yes, but only for VA, FHA and Fannie Mae’s HFA Preferred. Please see the Manufactured Housing Cheat Sheet for more info.
FHA and VA do not have a max CLTV when using down payment assistance from a governmental entity like FL Housing. Fannie Mae and Freddie Mac have a max 105% CLTV. For max CLTV on USDA RD, refer to USDA-RD’s maximum CLTV requirements.
NO. The only cash back permitted to borrower(s) would be any funds that were provided as gift funds. Be sure to obtain a copy of gift letter. Otherwise, any cash back of $1,000.00 or less should be applied as a principal reduction to the first mortgage. Any cash back exceeding $1,000.00 should be applied to the loan amount to reduce the borrower’s monthly housing obligation.
The standard 203k is not permitted but the streamline 203 is permitted. See Lakeview’s
Only one borrower must attend homebuyer education. Currently, FL Housing Homebuyer Loan Program Staff recommend Home View which is sponsored by Fannie Mae, it is available online and it’s free.
First mortgage loans originated under the HTH Program allow lender to charge their usual and customary origination fees but are NOT permitted to charge a 1% Origination. The HTH First Mortgage Fees are:
$400 Investor Funding Fee (payable to Master Servicer)
$275 Compliance Fee (payable to eHousing)
$75 Tax Service Fee (payable to Master Servicer)
$10 Flood Certification Transfer Fee (payable to Master Servicer)
The HTH Second Mortgage allows a recording fee only. No other fees are permitted.
No. However, all lenders that participate and work with the HTH Program must attend mandatory program and system training. www.ehpuniversity.com
The HTH Certification Form is available in the reservation for lenders to pull at time of closing. Youcan also obtain a blank Attestation Form for buyer to complete from the eHousing website here: https://programs.ehousingplus.com/available-programs/florida/fhfc/
Yes, the HTH Second Mortgage is required to be repaid, in full, upon the sale, refinance, transfer of deed, payoff of the first mortgage or if the borrower(s) no longer occupy the property as their primary. A demand letter would be issued to the borrower(s) if any of the above occur.
No. FL Housing down payment funds cannot be used to bridge the gap between the purchase price and the appraise value and cannot be used to pay off borrower(s) debt. It also cannot be used to pay broker fees.
Yes, as long as agency providing the down payment funds take third lien position.