Florida Hometown Heroes Program Calculator

Hometown Heroes Frequently Asked Questions

The Hometown Heroes Program is designed to aid eligible full-time employees, working with Florida-based employers, in obtaining more affordable mortgage options. This includes lower interest rates and assistance with down payment and closing costs for first mortgages.

Who is eligible for the Hometown Heroes Program?

Eligibility is generally extended to full-time workforce members employed by a Florida-based employer. Borrowers must have a minimum credit score of 640 and meet the specific loan terms for FHA, VA, RD, Fannie Mae, or Freddie Mac first mortgages.

What types of properties are eligible under this program?

The eligible properties include attached or detached 1-unit dwellings, 2-4 unit properties (where the borrower occupies one unit), approved condos, and manufactured housing (1994 or newer) in conjunction with FHA, USDA-RD, VA, and FNMA loans.

Can I refinance my home under the Hometown Heroes Program?

No, refinances are not eligible under this program. It only applies to new purchases of primary residences.

What is the maximum debt-to-income ratio allowed?

The program allows a maximum of 50% DTI with Automated Underwriting System Accept/Eligible findings, 43% DTI with manual underwrites, and 45% DTI for manufactured housing loans.

Are there any restrictions on how many times I can participate in the program?

Yes, borrowers can participate in the FL Housing’s Homebuyer Loan Program, which includes the Hometown Heroes Program, only once. This applies to both first and second mortgage programs.

Is down payment assistance available?

Yes, eligible borrowers can receive down payment assistance in the form of a zero-interest loan, which can be used towards down payment and closing costs but not to cover the cost difference between the sales price and appraised value or to pay off borrower debt.

What documentation is required to apply for the Hometown Heroes Program?

Applicants must provide a copy of the fully executed Florida Hometown Heroes Certification Form, a copy of the Verification of Employment (VOE) for a full-time position with a Florida-based employer, and a copy of the signed, final Uniform Residential Loan Application (form 1003).

Can I prepay my loan without penalties?

Yes, prepayments are permitted at any time without penalty.

Is homebuyer education required for this program?

Yes, all borrowers are required to take an approved homebuyer education course unless they are veterans or active-duty military personnel using a government first mortgage loan.

How does the down payment assistance get repaid?

The down payment assistance is a zero-interest loan that must be repaid upon the sale, transfer of deed, satisfaction of the first mortgage, refinancing of the first mortgage, or if the borrower no longer occupies the property as their primary residence.

Florida Hometown Heroes Eligibility Requirements

To be eligible for the housing program, home buyers are required to work with a participating loan officer through Florida Housing, like MakeFloridaYourHome.

A crucial initial criterion is a credit score of at least 640. Applicants need to be purchasing a home for the first time and have an income that does not exceed 150% of the median for their local county, as per the specific county data.

Regarding employment, it is mandatory for borrowers to be engaged in full-time employment with a Florida-based employer, working at least 35 hours per week.

This condition applies to all applicants except for veterans, who are exempt from the employment hour requirement. However, to qualify, non-veteran borrowers must currently be working 35 hours or more per week.

The home in question must be intended as the primary residence of the borrower(s). This means that they must be able to reside permanently and lawfully in the State of Florida and must plan to move into the property within 60 days following the closing of the mortgage.

Furthermore, to meet the primary residence condition, applicants must not have held any ownership interest in a main home during the three years leading up to the mortgage execution. Exceptions are made for those who qualify under the Veterans' Exemption or are active-duty military members.

A critical component of the application process is the Homebuyer Education course, which must be completed by borrowers. There is an exemption from this requirement for co-signors, as well as for veterans and active-duty military personnel, provided they are obtaining a government first mortgage loan.

Lastly, there are specific income limits that must be observed. These limits are contingent upon household size and the particular county where the property is being purchased.

Borrowers must earn less than 150% of the area median income, with caps that can range anywhere between $128,250 and $162,750, varying by county.

Adherence to these requirements is essential for the qualification process. Prospective homebuyers should ensure they meet all the above criteria before proceeding with the application for a mortgage loan through the program.

Assistance Amount of the Florida Hometown Heroes Program

The Down Payment Assistance Program is crafted to ease the financial load for homebuyers at the onset of purchasing a home.

It provides a substantial benefit through zero-interest loans that contribute to the down payment and closing costs, significantly reducing the amount of cash buyers need to have on hand when they purchase a home.

Homebuyers are eligible for an assistance amount of 5% of the total loan, capped at $35,000 and not less than $10,000. This amount is presented as a zero-interest, non-amortizing loan with a 30-year deferred payment plan.

The repayment of this loan is contingent on specific events, such as the sale of the home or if the borrower stops using the home as their primary residence.

This program is tailored for a one-time use per borrower to help with acquiring a first home, covering first and second mortgage programs under FL Housing’s Homebuyer Loan Program.

The program is precise in how the funds can be employed; the assistance can be applied toward the down payment, closing costs, mortgage insurance premiums, or to reduce the principal balance of the mortgage.

The Down Payment Assistance Program is designed to be straightforward, offering clear terms for the deferred loan.

The assistance is provided at the beginning of the mortgage to lower the financial barriers that often prevent individuals from becoming homeowners.

It is structured to help buyers secure a property with less financial strain during the initial purchase phase.

The program's long-term, interest-free nature means that it integrates into the buyer’s mortgage plan in a way that does not demand immediate financial outlay, thereby allowing homebuyers to allocate funds to other essential aspects of purchasing and settling into a new home.

The intended use of these funds is to ensure that the homebuyers can comfortably afford their new home and the associated upfront costs.

For those who meet the qualifications, the Down Payment Assistance Program is a valuable resource that makes the transition into homeownership more accessible.

It stands as an initiative to support buyers by providing financial assistance that is focused on the initial costs associated with purchasing a property.

By taking advantage of this program, eligible homebuyers can look forward to a smoother and more financially manageable homebuying process.

Hometown Heroes Program Loan Terms

The Hometown Heroes Program offers specialized loan terms for eligible full-time workforce members employed by a Florida-based employer.

Participants in this program can benefit from lower-than-market interest rates when acquiring an FHA, VA, RD, Fannie Mae, or Freddie Mac first mortgage.

Additionally, the program offers reduced upfront fees, and applicants are not charged origination points or discount points.

Further financial support comes in the form of down payment and closing cost assistance to facilitate the purchasing process.

The program is exclusively for the purchase of a home; thus, refinances and construction-to-permanent loans are not allowed. Every borrower under this program must have a minimum FICO credit score of 640.

However, for manufactured housing (MH) and when manual underwriting is required, a higher minimum credit score of 660 is necessary. In all cases, blended FICO scores using Desktop Underwriter (DU) are not accepted.

Regarding the debt-to-income (DTI) ratio, the program has specific limitations. For loans assessed with Automated Underwriting System (AUS) Approve/Eligible findings, the maximum DTI ratio is set at 50%.

For manual underwrites, the DTI ratio must not exceed 43%. Additionally, a DTI ratio for manufactured housing is capped at 45%.

The property types eligible for these loans are quite varied, allowing for single-unit attached or detached dwellings, which include townhomes.

Borrowers looking to purchase multi-unit properties, such as 2-4 unit homes, are required to occupy one of the units as their primary residence.

Condominiums are eligible under this program, with single-unit approval available for FHA loans. Manufactured Housing is also eligible if it's a 1994 model or newer, but only in conjunction with FHA, USDA-RD, VA, and FNMA loans.

One key advantage of the loans under the Hometown Heroes Program is the absence of prepayment penalties, permitting borrowers to make early payments toward their loans without any extra charge.

This feature provides additional flexibility for homeowners who wish to pay off their loans faster than the agreed terms, potentially leading to substantial savings on interest over the life of the loan.

Documentation Required When Applying for Hometown Heroes Program

When applying for the Hometown Heroes Program, borrowers are required to provide specific documents to verify their eligibility. The necessary paperwork includes:

• A copy of the fully executed Florida Hometown Heroes Certification Form. This document confirms the borrower's enrollment and acknowledgment of the program's terms.

• A copy of the Verification of Employment (VOE) that demonstrates the borrower's full-time employment status. This must show that the borrower works 35 hours a week or more with an employer based in Florida.

• A copy of the signed, final Uniform Residential Loan Application, also known as form 1003. This form outlines the borrower's financial information, employment history, and details of the mortgage, for which they are applying.

These documents are vital for the application process and must be provided as accurately and completely as possible to avoid delays or issues in qualifying for the program.