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Florida Housing Bond Loan Program - Definitions

Ever wonder what specific terms mean in the Florida Housing Bond Loan Program? If so, you’re not alone. Many people have questions about terms they see on various websites or applications for multiple programs. While you may already know that an obvious term like “State” means the state of Florida, this post will define more complex terms used in this loan program.


Agency is a term that has many different meanings depending on the context in which it is used, including:

  • Federal Housing Administration (FHA) of the United States (Department of Housing and Urban Development.
  • Rural Development Service of the U.S Department of Agriculture (USDA/RD)
  • Veterans Affairs (VA)

Current Gross Annual Income

Refers to the gross income multiplied by 12 (months). In this case, gross income includes the sum of your monthly gross pay and additional earnings from bonuses, overtime, dividends, net rental income, part-time employment, interest royalties, Veterans Administration (VA) compensation, pensions, etc.; and other income like child support, alimony, social security benefits, sick pay, income received from business and investments, or unemployment income received from trusts.

Documentary Stamp and Intangible Tax Exemption

Under section 420.513(1) of Florida’s Statutes, the first two mortgages and documents issued to secure the repayment of the acquired loan will not incur any form of documentary or intangible taxation. This happens if the loan is given in conjunction with Florida Housing’s Homebuyer program's house financing plan. However, deeds aren’t exempt.

Federally Designated Target Area

Refers to specific areas within Florida determined as Areas of Chronic Distress (if any) and Qualified Census Tracts presented in this Program Guide.


These are mortgage loans insured by FHA, USDA-RD, or the U.S Department of Veterans Affairs (VA).

First Time Homebuyer

The borrower or the borrower’s spouse (if applicable) shouldn’t have any active Ownership Interest in a primary residence in 3 years before the date on which the mortgage will be executed. However, veterans eligible for the Veterans Exception and other homebuyers purchasing from Federally Designated locations are exempt from this term.

Government Loan Program

Refers to any FHA, USDA-RD, or VA loan secured from Florida Housing’s Homebuyer Program.


This is an abbreviation of Government Sponsored Enterprises, including Freddie Mac and Fannie Mae.

Homebuyers Program (s)

Refers to the requirements of the Florida Housings ownership assistance programs that are particularized in the loan program guide.

Household Income

This is the sum of the borrower's gross income and other occupants (over the age of 18) who'll be residing in the home purchased through this program. If the borrower is married, the spouse's annual income must be incorporated whether or not they will live in the property.

Income Limit

This is the federally converted household limits adjusted for the county and household size described by the program guide.

Lender/Participating Lender

This refers to any mortgage lending organization approved by the Florida Housing for the Bond Loan Program.

Mortgage Loan, Mortgage, and Mortgage Note

A mortgage loan refers to a qualified loan from an approved lender regarding the real property secured by the mortgage that creates the 1st and 2nd lien and is evidenced by a mortgage note. Mortgage refers to the message creating a lien on the property to secure the mortgage loan repayment. A mortgage note refers to the promissory record proving the responsibility to repay the mortgage loan.

Ownership Interest

Refers to the borrower (s) who has owned and occupied the real property, and their names appear on the deed.

Acquisition Limit or Purchase Price Limit

The homeownership program regulates the maximum home purchase price by county, as presented on this program.

Reasonable & Customary Closing Costs

Refers to reasonable and customary closing fees set to satisfy the Agency guidelines. Such payments don’t impact the guarantee or insurability of mortgage loans from Agencies.

Veterans Exception

A Congress Act permanently exempts qualified veterans from the first-time homebuyers requirement (the Internal Revenue Code 143) when using loan programs that depend on the mortgage revenue bond financing as their funding source.


The Florida Housing Bond Loan Program provides loans to qualified home buyers looking to purchase new or existing homes. You should understand some essential terms used under this program. This post outlined an in-depth definition of the standard terms associated with this loan type.

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