By Phil Ganz
Edited by Ryan Skerritt
This guide is about the FL Housing Bond Loan Program. This program is for people who are buying their first home and need help with the down payment. It allows you to get a conventional, FHA, USDA, or VA loan with a low down payment.
In the rest of this guide, we will explain everything you need to know about the program, including who can qualify, any fees, and more. Let's get started!
Who Runs the Florida Bond Loan Program?
The Florida Bond Loan Program works together with a few different groups to help you buy your first home:
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Florida Housing Finance Corporation (FL Housing): This is a state agency that helps make homeownership more affordable. They created the program and set the rules.
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Approved Lenders: These are banks or mortgage companies such as MakeFloridaYourHome that can offer the program to you. They will handle your loan application and paperwork.
- US Bank: This bank buys the loans from the approved lenders and services them, which means they collect your monthly payments.
What Loan Products Are Offered in the FL Housing Bond Loan Program for First-Time Home Buyers?
FL Housing Bond Loan Program offers two first-mortgage government loans as well as a conventional loan program for prospective first-time homebuyers.
Here is an overview of the different mortgage products offered by the program:
Overview of the First Loan Mortgage Programs
FL Housing offers three first mortgage loan products to eligible first-time homebuyers. These loan products are:
The FL First Mortgage Loans
This is a government-sponsored loan product offering a 30-year, fixed-rate mortgage.
The borrowers eligible for this loan automatically qualify for the down payment assistance program through the FL Assist or the FL HLP Second Mortgage Program.
The FL HFA Advantage Loans
Benefits
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Reduced mortgage insurance (MI) for qualifying borrowers.
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Eligible for down payment assistance programs (FL Assist or FL HLP).
- Fixed interest rate for 30 years.
Requirements
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Income must be at/below 80% of the Area Median Income (AMI).
- Must be a first-time homebuyer (exceptions may apply).
The FL HFA Preferred Loans
Benefits
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Reduced mortgage insurance (MI) for qualifying borrowers at/below 80% of AMI.
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Eligible for down payment assistance programs (FL Assist or FL HLP).
- Fixed interest rate for 30 years.
Requirements
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Income must be at/below 80% of Area Median Income (AMI) for reduced MI.
- Must be a first-time homebuyer (exceptions may apply).
The FL HFA Advantage Loan and the FL HFA Preferred Loan are very similar programs with almost identical benefits and requirements.
The only difference is the source of the reduced mortgage insurance (MI), using Freddie Mac or Fannie Mae respectively to determine reduced mortgage insurance.
Overview of the Second Loan Mortgage Programs
Florida Housing offers eligible first-time homebuyers a second mortgage loan program that's used specifically to cover down payment costs, mortgage insurance premiums, and closing costs. The funds can also settle prepaids or be used as a first mortgage principal reduction.
FL Second mortgage programs are classified into the FL Assist and the FL Homeownership Loan Program (FL HLP). Here's a quick look at the two:
FL Assist Second Loan Program
Benefits
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0% interest and no monthly payments required.
- Up to $10,000 for down payment and closing cost assistance (higher for FHA, USDA, and VA loans).
Requirements
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Must be used in conjunction with a first mortgage from the FL Bond Loan Program.
- Repayment required when you sell, refinance, or cease to occupy the property.
FL HLP Second Loan Program
Benefits
- Fixed monthly payment for 15 years with up to $10,000 for down payment and closing cost assistance.
Requirements
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Fixed monthly payment.
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Repayment required when you sell, refinance, or cease to occupy the property.
- Cannot be combined with other FL Housing down payment programs.
How Does The FL Housing Bond Loan Program Process Work?
The FL Housing Bond Loan Program involves a few steps to get you approved for your home loan. Here's a simplified overview:
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Get Pre-Qualified: You'll work with a participating lender like MakeFloridaYourHome to see if you qualify for the program.
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Gather Documents: Your lender will ask for documents to verify your income and financial situation.
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Homebuyer Education: You'll need to complete a homebuyer education course approved by FL Housing.
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Loan Approval: The lender will review your application and submit it for approval.
- Closing: Once approved, you'll sign closing documents and finalize your loan.
Don't worry about the behind-the-scenes details. MakeFloridaYourHome can guide you through each step.
What Are The Requirements for the FL Housing Bond Loan Program?
The Florida Housing Bond Loan program is classified into four categories, each with its unique requirements and specifications. Here is a quick rundown of each:
First-Time Home Buyer Requirements
To be considered eligible for the FL Housing Loan Bond program, you must be a first-time homebuyer.
This essentially means that you shouldn’t have shown any ownership interest in a primary residence at any point over the three years before the date the Mortgage Loan is executed.
With that being said, certain exceptions can allow you to bypass this requirement. These are:
Veterans Exception
If you are a veteran who has served in the active military, navy, or air force and have been dismissed or released under terms deemed as honorable, you need not be a first-time homebuyer to be considered eligible for the FL Housing Bond program.
Having said that, you need to certify that you meet the other Mortgagor’s Affidavit requirements.
Federally Designated Targeted Area Exception
You do not have to be a first-time homebuyer to qualify for the FL Housing Bond program if you’re looking to buy a house in a federally designated targeted region.
Due to natural catastrophes or poor economic progress, the federal government designates certain places as in need of further development assistance. Presently, there are more than 30 counties in Florida where federally designated regions have been identified.
Even if you are purchasing a second home, you may be eligible for the FL Bond Program if you purchase a property in one of these counties’ designated communities.
The state government typically employs this provision to encourage more individuals to buy properties in these targeted locations.
Income Limit Requirements in 2024
There are income limits for all Federal Florida mortgage loan programs.
To qualify for this program, your household income must be below a certain amount. This amount depends on where you want to buy a home and how many people are in your household.
Areas designated as economically distressed (targeted areas) typically have higher income limits to encourage homeownership.
Here's a table summarizing the income limits in Miami-Dade County in 2024:
| Location | Household Size | Income Limit |
|---|---|---|
| Non-targeted area | 1-2 people | $64,200 |
| Non-targeted area | 3+ people | $93,100 |
| Targeted area | Any | $93,100 |
You can use our comprehensive guide to see the income and purchase price limits for every county in Florida for the Florida Bond Loan Program.
How Is Income Determined?
To qualify for the program, your household income (combined income of everyone over 18 living in your home) needs to be below a certain limit. This limit is based on your family size and the location of the house you want to buy.
Here's what lenders consider when calculating your income:
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All income sources (wages, investments, pensions, etc.)
- Pay stubs, bank statements, and tax returns (documents vary based on your situation)
If your income is below the limit for your family size and location, you're good to go!
Purchase Price Limits in 2024
There are also purchase price limits for the Florida Bond Loan Program. This limit helps ensure the program targets homes at a price point suitable for first-time homebuyers.
Similar to income limits, the purchase price limit depends on the location of the house you want to buy and whether it's in a targeted area. Targeted areas typically have higher purchase price limits to reflect potentially higher local housing costs.
Here's a table summarizing the purchase price limits in Alachua County:
| Location | Purchase Price Limit |
|---|---|
| Non-Targeted Area | $317,789 |
| Targeted Area | $388,150 |
Want to see the purchase price limits for other counties? Our comprehensive guide details income and purchase price limits for every county in Florida participating in the Florida Bond Loan Program.
Other Requirements
Aside from the aforementioned requirements, the US Bank and the FHA have certain extra requirements that a borrower must satisfy to be considered eligible.
For new loan reservations, a minimum FICO score of 640 is required. Furthermore, borrowers of USDA loans must have a maximum DTI ratio of 45%.
FHA and HFA borrowers with a minimum FICO score of 640 - 679 may also have a maximum DTI ratio of 45% whereas borrowers with a minimum FICO score above 680 may have a maximum DTI of 50%.
Homebuyer Education
To qualify for the FL Bond Loan Program, you'll need to take a homebuyer education course. This course is designed to help you understand the home-buying process and prepare you for success as a homeowner.
The course covers topics like:
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Working with lenders and realtors.
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Understanding different mortgage options.
- Specifics of the FL Bond Loan Program.
The course can be taken online or in person, but you must complete it before your loan closes.
Most lenders will partner with a company to offer the course. Don't worry about the details - MakeFloridaYourHome can guide you through the process.
The certificate you receive after completing the course is valid for two years.
Property Types
When applying for an FL Bond Loan program, it's best to understand the different guidelines and restrictions so you can prepare in advance.
Under the FL Housing first mortgage programs, some of the property types eligible for financing include:
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Attached/detached 1-unit dwelling including townhomes.
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2 to 4-unit properties – borrowers, must occupy at least one of the units as their primary residence, and the property must be at least five years old.
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Condos – the US Bank must approve all condos to be financed. FHA guidelines must also be followed.
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Manufactured housing – this is only permitted with FHA loans. Manufactured housing isn't allowed with VA and the USA-RD loans.
- Modular housing is permitted – these are homes built at one location and assembled at a different location. Modular homes aren't mobile.
It's worth noting that the FL Bond Loan Program expects that no more than 15% of the property's square footage may be used for business purposes.
FL Housing Bond Loan Program: Top 10 Questions Answered
Who runs the FL Housing Bond Loan Program?
The FL Housing Bond Loan Program is a collaboration between the Florida Housing Finance Corporation (FL Housing), approved lenders, and US Bank.
What loan options are available through the program?
The FL Housing Bond Loan Program offers various loan options, including FHA, USDA, VA, and FL HFA conventional loans. These loans come with fixed interest rates and terms of 30 years.
Is there down payment assistance available?
Yes, the program offers down payment assistance through the FL Assist or FL HLP Second Mortgage Programs, helping you cover down payment costs, mortgage insurance premiums, and closing costs.
What are the eligibility requirements?
Generally, you must be a first-time homebuyer (with some exceptions), meet income limits based on location and family size, have a minimum credit score, and complete a homebuyer education course.
Are there income limits to qualify?
Yes, the program has income limits that vary depending on your household size and the location where you want to buy a home. Targeted areas with economic distress typically have higher income limits.
How is my income determined?
Lenders consider your combined household income from all sources when calculating eligibility. They will require documents like pay stubs, bank statements, and tax returns to verify your income.
Are there purchase price limits on homes?
Similar to income limits, there are purchase price limits to ensure the program targets homes affordable for first-time homebuyers. These limits vary by location and are typically higher in economically distressed areas.
What types of properties are eligible?
Several property types qualify, including single-family homes, townhomes, some condo buildings approved by US Bank, and even manufactured housing with FHA loans.
What documents do I need to apply?
The application process involves various documents such as a borrower affidavit, US Bank privacy forms, notices to the buyer, and seller affidavits.
Where can I learn more?
You can find more details on the Florida Housing website or by contacting a participating lender like MakeFloridaYourHome. This guide is a starting point, but don't hesitate to ask your lender for personalized information.
A Final Word
Due to growing costs and periodic supply shortages, becoming a first-time homebuyer in Florida can seem intimidating for most people.
Fortunately, there are numerous alternatives and aid programs available to make the process affordable, notably the FL Bond Loan Program.
Purchasing your first home is undoubtedly one of the most significant investments you’ll ever make in your life. So, make sure to examine all your options carefully and pick the one that best suits your budget.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
