- Reduce upfront costs for eligible first-time buyers.
- Receive 5% of the total loan amount, up to $35,000.
- The minimum available benefit is $10,000.
- The minimum required credit score is 640
- A maximum debt-to-equity ratio (DTI) of 50%
Florida Hometown Heroes Housing Program
Highlights
Despite the invaluable contributions of workers in our Florida communities, the biggest obstacle to homeownership remains the high upfront costs from the required down payments and closing costs. Fortunately, there are many programs available, such as the Florida Hometown Heroes housing program, to help our neighbors become homeowners.
What is Florida Hometown Heroes?
The Florida Hometown Heroes housing program is an initiative by the Florida Housing Finance Corporation to make homeownership more affordable for eligible first-time buyers. To achieve this goal, down payment and closing cost assistance are available to qualified, first-time, homebuyers. As of July 1, 2023, this program is no longer restricted to specific occupations.
How Does It Work?
Florida Hometown Heroes provides an opportunity to receive up to 5% of the loan amount (minimum $10k, max of $35k) in the form of a 0% interest, non-amortizing, 30-year deferred second mortgage. However, it’s important to note this second mortgage is not forgivable. The borrower is required to repay the loan when:
- The property is sold or the deed is transferred
- The first mortgage is paid off or refinanced
- The property is no longer occupied as the primary residence
Who Qualifies for Florida Hometown Heroes?
Borrowers must meet certain eligibility requirements in order to qualify:
- Household income and purchase price are under the limit for the county in which the property is located.
- All borrowers are first-time buyers.
- Work a minimum of 35 hours per week.
- Complete first-time homebuyer education.
First-Time Homebuyer Requirement
Potential borrowers must be considered first-time homebuyers, meaning, they haven’t owned a home in the three years preceding the sale. Thankfully, active military service members and Veterans are exempt from this requirement so long as they have been honorably discharged.
What’s the Income Limit for Hometown Heroes?
The income limit varies depending on the county in which the property is located, and only applicants with an income below 150% of the county’s median income are eligible.
Loan Types
Various loan types are available to eligible borrowers:
Conventional
- Reduced private mortgage insurance (PMI) is available if your income is below 80% AMI (area median income)
- DTI of 50% with 680+ FICO score.
- DTI of 45% with 640 to 679 FICO score.
FHA
- DTI of 50% with 680+ FICO score.
- DTI of 45% with 640 to 679 FICO score.
- Mortgage Insurance is set by FHA guidelines.
- Condos are ineligible.
- FHA 203k Streamline is now eligible to be used
VA
- Manufactured homes are ineligible.
- Veterans and active-duty military are exempt from first-time homebuyer requirements.
- DTI of 50% with 680+ FICO score.
- DTI of 45% with 640 to 679 FICO score.
USDA
- Minimum FICO score of 660.
- Maximum DTI per GUS findings.
Are there Other Down Payment Assistance Programs?
In addition to Hometown Heroes, there are numerous other programs available that don’t require you to be a first-time buyer. These include being able to Federal grants and forgivable loan amounts of up to 3.5% of the purchase price.
Various factors from credit score, loan-to-value, income, and property type, can affect rates and loan terms. That’s why it is essential to work with a knowledgeable mortgage broker like McLaughlin Mortgage to help you navigate through the options and achieve your real estate goals. We understand that buying a home can be overwhelming, which is why we make the mortgage experience as simple as possible.
The Loan Process
How to get started:
- Verify your Hometown Heroes eligibility.
- Receive options based on your criteria and scenario.
- Compare interest rates and terms from our lender network.
- Choose the offer that best fits your needs.