The Florida Hometown Heroes Housing Program is designed to offer critical financial assistance to community workers who serve and strengthen the state. This initiative makes purchasing a home more affordable, ensuring that those who dedicate their lives to supporting Florida’s communities can also establish their own roots within them.
What Is the Hometown Heroes Housing Program?
The Hometown Heroes Housing Program is a state-led initiative aimed at providing down payment and closing cost assistance to income-qualified, first-time homebuyers. The program supports eligible workers by enabling them to purchase a primary residence in the communities they serve. With a generous allocation of $100 million in funding, the program offers an invaluable opportunity for those who meet the criteria.
Key Benefits of the Program
Substantial Financial Assistance
Eligible borrowers can receive up to 5% of their first mortgage loan amount to assist with down payment and closing costs. This translates to anywhere from $10,000 to a maximum of $35,000 in assistance. The aid is structured as a 0%, non-amortizing, 30-year deferred second mortgage. This means there are no monthly payments, and repayment is only required if the property is sold, refinanced, transferred, or no longer serves as the borrower’s primary residence.
Competitive Mortgage Options
The program provides access to below-market interest rates on various mortgage options, including FHA, VA, RD loans. These favorable loan terms help to lower monthly mortgage payments and make homeownership more financially manageable.
Reduced Fees
Participants benefit from reduced upfront costs, with no origination or discount points. This ensures that more of their funds can go directly toward purchasing their home rather than being consumed by fees.
Eligibility Requirements
To qualify for the Hometown Heroes Housing Program, applicants must meet specific criteria:
- First-Time Homebuyer Status: Borrowers must be first-time homebuyers, defined as individuals who have not owned a primary residence in the past three years. Veterans, however, are exempt from this requirement.
- Employment Requirement: Eligible applicants must be employed full-time by a Florida-based employer with a physical location in the state. Borrowers must work from or report to that physical location.
- Income Limits: Household income cannot exceed 150% of the Area Median Income (AMI) for their county. As of 2024, the income cap for Sarasota and Manatee Counties is $150,750.
- Credit Score Requirement: A minimum credit score of 640 is required to qualify for the program.
Enhanced Assistance and Expanded Eligibility
As of July 1, 2024, the program has seen significant enhancements to better serve Florida’s workforce:
- Increased Assistance: The maximum down payment and closing cost assistance amount has been raised from $25,000 to $35,000, allowing more flexibility in home financing.
- Expanded Access: While the program initially targeted frontline heroes such as healthcare workers and first responders, it is now available to all full-time working Floridians employed by a Florida-based employer.
- Additional Funding: With an extra $100 million allocated for the 2023-2024 fiscal year, the program is better positioned to meet the growing demand and help more individuals achieve homeownership.
With a significant funding pool of $100 million, the Hometown Heroes Housing Program is expected to see high demand, meaning that funds may deplete quickly. Eligible homebuyers are encouraged to apply as soon as possible to take advantage of this opportunity before funds run out.
If you are a Florida-based employee looking to purchase a home in your community, the Hometown Heroes Housing Program may be the key to making your dream of homeownership a reality. Contact a participating lender today to explore your eligibility and take the first step toward owning a home in the community you proudly serve.
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