Government assistance points the way to homeownership.
A homebuyer seed grant provides downpayment and closing-cost assistance to qualifying homeowners. Much of the money comes from the U.S. Department of Housing and Urban Development (HUD) and from the collection of Florida documentary taxes that are accessed whenever a deed or a new mortgage is recorded. The Florida Housing Finance Corporation was created by the state legislature to administer the state's housing funds and to facilitate affordable housing for low- and middle-income families.
HOME Investment Partnerships Program
HUD's HOME Investment Partnerships program provides every state with a minimum $3 million in grant dollars every year to use for affordable housing initiatives. In addition, eligible jurisdictions within each state may apply directly to HUD for minimum annual funding of $500,000. Communities that don't qualify for an individual allocation may band together and apply for a grant with neighboring localities. Communities can also apply to Florida for grant money drawn from HUD's allocation to the state. Grant money is used for downpayment and closing-cost assistance, as well as home repair and new construction.
State Housing Initiatives Partnership (SHIP) Program
The Florida Housing Finance Corporation manages the SHIP program, which is funded through the collection of state documentary taxes. Funds are distributed to all 67 counties and 53 entitlement cities in Florida. The minimum grant amount is $350,000 and the maximum is over $8.8 million. SHIP funds are used for downpayment and closing-cost assistance, new construction of affordable housing and emergency repairs.
Homeownership Pool (HOP) Program
The HOP program is administered by the Florida Housing Finance Corporation and provides grant money to developers on a noncompetitive basis. The funds are used to offer 0 percent interest on deferred second mortgages to low-income buyers who purchase one of the developer's homes. The money is equal to the lesser of 25 percent of the purchase price or $70,000, whatever is needed to satisfy the underwriting criteria. The money is available to homebuyers on a first-come, first-served basis.
First-time Homebuyer Program
The Florida Housing Finance Corporation works with a network of approved lenders that offer low-interest rate, 30-year fixed rate mortgage loans, to low-to-moderate income first- time homebuyers, qualifying veterans and individuals planning to purchase a home in a federally designated area. Individuals must meet the program's income and purchase price limits to qualify. Qualifying for the program became significantly more difficult on July 1, 2011, when a minimum 620 FICO score was added to the list of qualifying criteria.
Florida Assist Program
The Florida Assist program is administered by the Florida Housing Finance Corporation and provides 0 percent interest and nonamortizing second mortgage loans to low income homebuyers. You make no monthly payments and repay the loan only when you sell the house, transfer ownership, pay off the first mortgage or vacate the property. The loan provides a maximum of $10,000 to assist with downpayment and closing costs.
Homeownership Assistance For Moderate Income (HAMI) Loan
The HAMI program is also administered by the Florida Housing Finance Corporation and is intended for homebuyers who make more than the Florida Assist Program allows, but who still fall within the First Time Homebuyer maximum income level. The loan provides a maximum of $5,000,,at 5 percent interest, for downpayment and closing cost assistance.
Tags: Finance Corporation, Florida Housing, Florida Housing Finance, Housing Finance, Housing Finance Corporation, administered Florida
