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Hometown Heroes Loan Program - Learn How to Get up to a $35,000 Grant in Alachua County, Florida

If you live in Alachua County, Florida, and looking to buy your first home, you could qualify for the Hometown Heroes Loan Program. This initiative is designed to help eligible full-time community workforce across Florida enjoy homeownership benefits.

The program offers up to $35,000 for home financing assistance as a 2nd mortgage to eligible borrowers pursuing their dreams of homeownership in the Sunshine State.

This financial assistance comes from low or no down payment loans, with flexible repayment terms and low fixed interest rates.

5% of the TOTAL loan amount capped at $35,000, with a minimum of $10,000, in down payment and closing cost assistance offered as a 0%, non-amortizing, 30-year, repayable second mortgage.

However, if any of the following occur, the borrower(s) refinance, pay off the first mortgage, transfer deed or no longer occupy the property as their primary residence, any unpaid principal balance will be required to be repaid, in full.

You must also qualify under standard guidelines for income, debt-to-income ratio, and credit score to qualify for this program.

This article will explore everything you need to understand about the Hometown Heroes Loan Program, including income & limit requirements in Alachua County, and other essential things about this beautiful county in Florida.

Read on to learn more.

Program Requirements

To qualify for a Hometown Heroes Grant in Alachua County, you must meet all the requirements. Understanding the program requirements can be confusing, but don't worry.

If you're interested in applying for the Hometown Heroes Loan Program in Alachua county, Florida, here's everything you need to know about eligibility requirements.

Income Requirement

The income requirement for Hometown Heroes is that applicants must have an individual or household income of less than $130,050.

The household income includes your spouse's (if you are married) and other working family members like children living with you.

If you're filing taxes jointly with your spouse or a working family member, you may be eligible if your combined gross annual income is less than $130,050.

If you're applying as an individual, your income must also be below the maximum requirement.

You must prove your income by providing copies of your most recent pay stubs or W-2 forms. Self-employed individuals must provide a copy of their business tax return, including their spouses or working children.

When applying for a program with an income requirement, be honest and upfront about your total household income. Being dishonest could land you in hot water.

Maximum Loan Limits

If you're looking to buy your first home in Alachua County, you may want to start by determining what type of loan you qualify for.

While each home loan program has its unique requirements and restrictions, knowing the maximum allowable loan amount can help you get a sense of what type of home might be within your reach.

The maximum loan amounts vary depending on the loan program you're looking to use.

These include using a Federal Housing Administration (FHA), United States Department of Agriculture - Rural Development (USDA-RD), Veteran Affairs (VA), Housing Finance Agency (HFA) Preferred, or HFA Advantage loan to finance your home purchase.

Read on to determine the maximum allowable amount you can borrow based on your loan type.

Hometown Heroes Loan Limits FHA & USDA-RD

First-time homebuyers who want to qualify for a loan using one of these options in Alachua County will see a new maximum loan limit of $472,030.

USDA-RD does not have a Cap on Loan Limit.

To qualify for an FHA loan under these new rates, you need at least a 3.5% cash down payment and zero down payment for a USDA-RD loan.

If you're putting less than the required down payment on your home purchase, you'll need mortgage insurance through MIP or PMI. This additional cost will be paid out of pocket each month until your home equity reaches 20%.

Hometown Heroes Loan Limits HFA Preferred, HFA Advantage, and VA

The new maximum VA, HFA Preferred, and HFA Advantage loan limit allows homebuyers to purchase a home for up to $726,200 with no money down for VA loans and a 3% cash down payment for HFA Preferred and HFA Advantage.

These are some of the most popular programs used by service members and veterans looking to buy a home.

The HFA Preferred, and HFA Advantage programs require that borrowers have good credit scores (640 or higher) to qualify for these low down payment options.

These programs also require you to complete homeownership counseling before closing your mortgage.

Before applying for any of these loans, speak with your lender about what you need to accomplish to qualify for the maximum loan amount.

Borrowers that Qualify for Hometown Heroes Loan in Alachua County, Florida

Not everyone will qualify for the Hometown Heroes Loan program, so it's essential to understand what will make you eligible.

  • Borrower(s) must be employed full-time by a Florida-based employer and work 35 or more hours per week.

  • The property the borrower(s) is purchasing will be their primary residence and they will be a Florida resident.

  • The borrower(s) are first-time homebuyers which means, a borrower(s) must have had no present ownership Interest in a principal residence at any time during the three-year period prior to the date on which the Mortgage Loan is executed.

  • All Borrowers must have a minimum FICO of 640. DU blended FICOs are not permitted. Manufactured Housing and manual underwrites require a minimum FICO of 660.

  • Maximum DTI of 50% is required. With manufactured housing, maximum DTI is 45%.

If you're active military personnel, you'll be exempt from the first-time homebuyer requirement, but you must provide a copy of your military ID

If you're a veteran with an honorable discharge, you'll be exempted from the first-time homebuyer requirement, but you must provide a valid DD-214 reflecting discharge.

If you're a surviving spouse, you may partake in a Veterans Affair (VA) first mortgage but must provide a valid Certificate of Eligibility (COE).

Florida Tax Exemption Benefits

One of the top benefits of using the Hometown Heroes Program is tax exemption, saving you thousands of dollars.

Under Section 420.513(1) of the Florida Statutes, this program provides an exemption from documentary stamp tax and intangible tax for first and second mortgages and notes used to secure loans for housing financed through Florida Housing's Homebuyer Programs.

This means that when you purchase a home through these programs, you won't have to pay the documentary stamp tax and intangible tax on your mortgage, saving you a substantial amount of money.

The Florida documentary stamp tax is a real estate transfer tax levied at a rate of $0.70 per $100 paid for the property in most counties, except Miami Dade, where it is $0.60 per $100.

With the Hometown Heroes Program, you can exclude this tax when you meet the program's criteria. Additionally, the Florida intangible tax, which is calculated at 2 mills per dollar of the note's just value secured by the mortgage, is also exempted.

For each $100,000 of your home purchase price, this exemption can potentially save you approximately $2,000 in documentary stamp tax and intangible tax.

Sweetwater Wetlands Park in Gainesville Florida is a nature preserve

Alachua County, Florida - The Most Important Things You Need to Know

Alachua County, Florida, is one of the most populous counties in Florida, comprising the entirety of Gainesville, Florida, and other popular cities such as Archer, High Springs, Newberry, Micanopy, and Waldo.

Alachua County was founded in 1824 and was initially named after the historic Native American tribe that once inhabited this area of Florida (Alachua).

Today, it's one of the largest counties in Florida, with over 260,000 residents spread across hundreds of square miles.

This beautiful county may be small in size, but it's big on experiences and attractions, offering numerous opportunities to get out and encounter everything the county offers.

Whether you're looking to spend time in the woods or at home with family, this county has something for everyone.

Check out the following essential things you need to know about Alachua County, Florida.

The Cost of Living

Not only is Alachua County cheaper than most cities in Florida, but it's also a significantly more affordable place to live than almost anywhere else in the US.

So if you're trying to cut costs but don't want to skimp on amenities or quality of life, consider making Alachua your home.

It's one of America's best places for cost-effective living and offers a wide range of housing options, from spacious apartments and condos to charming bungalows and cozy cottages.

The average rent for an apartment in Alachua County is $1065 per month. You can expect a well-maintained property with modern appliances and updated fixtures for that price.

To save even more money on rent (and get extra space), consider renting a house instead of an apartment; they tend to be larger and less expensive than comparable units.

Even though you're in one of Florida's most tourist-oriented counties, there is plenty to do in Alachua that won't break your budget.

The area has dozens of affordable restaurants, many of which have received 4- and 5-star reviews from local diners and critics alike.

Evenings are perfect for spending time with friends and family at one of the affordable destinations, most of which have hiking trails and picnic areas just a few steps away from natural springs.

Best Neighborhoods to Purchase a Home

Buying a home in Florida is one of the most exciting adventures you can embark on, especially if you are a new homeowner. If you're looking to buy or build a home in Alachua County, Florida, consider buying in one of these areas.

They have been ranked as some of the best places to live in all of Florida! Micanopy Area, Archer/Leesburg Area, Gainesville Area, High Springs Area, Hawthorne Area, Waldo/Alachua Area, Newberry/Clermont Areas.

The small-town feel and incredible natural beauty give these towns an excellent sense of community, but there are still plenty of fun things to do for young professionals.

Before looking for your dream home, ensure you have a firm grasp of your price range. This way, when browsing through homes in Alachua County, you can quickly weed out any listings that don't fit your budget.

Before making a final decision, you may also want to look at school districts or a neighborhood's proximity to services and shops. You can get this information by visiting a local realtor, tax assessors' websites, and doing online research.

Public and Private schools

In terms of education, Alachua County ranks above average among Florida counties.

There's a wide array of public, private, and charter schools in Alachua County. Some are better, but it can be hard to tell which ones are good.

However, some of the best public schools here include but aren't limited to Gainesville High School, Meadowbrook Elementary School, Micanopy Area Cooperative School Inc., Boulware Springs Charter, Healthy Learning Academy Charter School, and Santa Fe College.

The best private schools in Alachua County are The Rock School, Cornerstone Academy, Christian Life Academy, and Bhaktivedanta Academy.

Family Friendliness

Alachua County is a family-friendly place to live. The community is known for its strong school and health system and host of family-friendly activities that residents can enjoy during their free time.

Many unique neighborhoods have beautiful restaurants, shops, attractions, and outdoor spaces, making them attractive spots for all kinds of families.

There are also plenty of opportunities for kids to participate in sports or take classes at some of Florida's best STEM education curriculum schools.

If you're looking for a great place to raise your children, consider moving to Alachua County!

Benefits for Young Professionals

If you're looking for a place where young professionals are highly encouraged, look no further than Alachua County.

With multiple major universities and a growing local economy, there are plenty of opportunities to advance your career while living in a beautiful community.

And who knows, maybe your business will be one of the local enterprises that play a role in making the community even better.

Additionally, as a young professional, buying a home can seem daunting. However, there are great resources and programs available that have made it easier than ever before.

If you're interested in homeownership but aren't sure where to start, living in Alachua County might be the beginning of achieving your homeownership dreams!

Towns Eligible for Hometown Heroes Loan Program in Alachua County, Florida

The Alachua County/city municipality must be eligible for and approved for Hometown Heroes funding.

Contact your city or county representative for more information about their program requirements, including HUD income limits, down payment requirements, and mortgage eligibility (if applicable).

The following cities are eligible for Hometown Heroes funding:

  • Alachua
  • Archer
  • Branford
  • Gainesville
  • Hawthorne
  • High Springs
  • La Crosse
  • Micanopy
  • Newberry
  • Waldo

Bottom Line

If you're interested in buying your first home, you may be eligible for the Hometown Heroes Loan Program. The program is designed to provide low-interest mortgages to eligible full-time workforce, employed by a Florida-based employer who live or work in Alachua County, Florida.

The program offers up to $35,000 in down payment and closing cost assistance as a 0%, non-amortizing, 30-year, repayable second mortgage.

Understanding the ins and outs of the Hometown Heroes Loan Program in Alachua County will help you make the right decisions when applying for a loan with one of the applicable lenders.

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.

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