First Time Homebuyer

Understanding

It’s important that as a first-time homebuyer you understand the homebuying and mortgage process fully. Not only will this help you make better financial decisions, but it will make the process smooth and easy. Purchasing a home doesn’t have to be hard if you know what you’re doing.

Take a look at our homebuying guide and learn the homebuying and mortgage process from start to finish. If you have additional questions, our mortgage experts are here to help.

Florida First Time Homebuyer Program Overview

Florida Housing provides a Homebuyer Program catering to first-time homebuyers in the state. This initiative offers 30-year fixed-rate first mortgage loans through approved lenders across Florida. Additionally, eligible borrowers can access second mortgage programs to aid with down payment assistance and closing costs.

Qualification Requirements for Homebuyer Loan Program:

  • Minimum credit score of 640.
  • Collaboration with an approved, participating Program Lender.
  • Completion of approved Home Buyer Education.
  • Purchase price below county-specific limits.
  • Income within county-specific limits.
  • Must meet the IRS definition of a first-time homebuyer, meaning no ownership and occupancy of a primary residence for the preceding three years.

Down Payment Assistance Programs

Florida Housing extends support for down payment and closing costs through second mortgage loans, exclusively in conjunction with Florida Housing’s first mortgage loan. Stand-alone down payment assistance is not available. The following Down Payment Assistance Programs are accessible to eligible buyers:

Florida Assist (FL Assist):

  • Offers up to $10,000 on FHA, VA, USDA, and Conventional Loans.
  • 0% interest, non-amortizing, deferred second mortgage.
  • Not forgivable; repayment is deferred until specific events occur, such as property sale or refinancing.

Florida Homeownership Loan Program (FL HLP) Second Mortgage:

  • Provides $10,000 assistance.
  • 3% fully-amortizing, second mortgage with a 15-year term.
  • Carries a monthly payment; remaining unpaid principal balance is deferred until specific events occur, similar to FL Assist.

The FL HLP Second Mortgage involves a monthly payment. However, the outstanding unpaid principal balance (UPB) is deferred until certain circumstances occur, such as the sale of the property, transfer of deed, satisfaction of the primary mortgage, refinancing, or if the mortgagor(s) no longer occupy the property as their primary residence. At that point, the FL HLP Second Mortgage becomes due and payable in full.

Given that the FL HLP Second Mortgage requires a monthly payment, lenders may need to take this into account when evaluating a borrower’s debt-to-income (DTI) ratio during the credit underwriting process.

3%, 4% and 5% HFA Preferred and HFA Advantage PLUS Second Mortgage

Borrowers availing these down payment and closing cost assistance programs receive 3%, 4%, or 5% of the total loan amount in a forgivable second mortgage. Forgiveness occurs at 20% annually over a 5-year term when used with Florida Housing’s conventional first mortgage products, HFA Preferred for TBA or HFA Advantage for TBA. The “PLUS” Second Mortgage is exclusive to these conventional first mortgage products.

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