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Florida Hometown Heroes first time home buyer program

Florida Hometown Heroes
Florida Hometown Heroes

Florida Hometown Heroes Process Guide. Contact Par 4 Mortgage for more information.

The Florida Hometown Heroes Housing Program through the Florida Housing Finance Corporation helps make homeownership more affordable for eligible borrowers. The product provides down payment and closing cost assistance to first-time, income qualified homebuyers to assist them in the purchase of a primary residence.

WHAT IS IT?

Florida Hometown Heroes allows borrowers to receive up to 5% of the loan amount (capped at $35,000) in down payment and closing cost assistance. It can be paired with additional assistance programs to maximize amount of received assistance. There is a $10,000 grant minimum for loans of $200,000 or less.

  • Down payment and closing cost assistance is available in the form of a 0% interest, non-amortizing, 30-year repayable second mortgage. This second mortgage becomes due and payable in full upon sale of the property, refinancing of the first mortgage, transfer of deed or if the homeowner no longer occupies the property as their primary residence. The Florida Hometown Heroes loan is not forgivable.
  • The down payment and closing cost assistance can be used to satisfy the following:
    • Borrower’s down payment 
    • Any down payment exceeding the minimum borrower requirement 
    • Reasonable and customary closing costs 

NOTE: The down payment and closing cost assistance cannot be used to cover commission for real estate agents, the cost difference between the sales price and the appraised value or to pay off borrower debt. 

OPTIONS 

  • Conventional
    • HFA Preferred Heroes (Fannie Mae) – Offers eligible borrowers a 30-year, fixed-rate mortgage. This mortgage also offers borrowers a reduced Private Mortgage Insurance premium for borrowers below 80% AMI. Standard PMI applies to borrowers above 80% AMI. 
    • HFA Advantage Heroes (Freddie Mac) – Offers eligible borrowers a 30-year, fixed-rate mortgage. This mortgage also offers borrowers a reduced Private Mortgage Insurance premium for borrowers below 80% AMI. Standard PMI applies to borrowers above 80% AMI. 
  • FHA, USDA and VA
    • AMI does not impact MI rate

ELIGIBILITY 

  • Borrowers must not exceed the maximum income limit requirements for the county in which property is being purchased – Hometown Heroes Loan Limit and Income Limit Lookup 
  • All borrowers must be considered a first-time homebuyer
  • At least one borrower must be employed by a Florida based employer
    • WVOE or pay stubs indicating full time employment of 35 hours or more a week is required 
    • First-time homebuyer counseling is required to be completed by at least one borrower
    • A Florida Hometown Heroes Loan Program Borrower Certification Form is required
  • Veterans and active-duty military members are exempt from all first-time homebuyer requirements unless participating in HFA Preferred Heroes program
    • Veterans are NOT exempt from completing a homebuyer counseling course

PARAMETERS 

  • Florida ONLY
  • 30-year fixed Conventional, FHA, USDA and VA loan types
  • Primary purchases ONLY 
    • 1-unit single family residences and PUDs
    • 2-4 units
      • Borrower must occupy 1 unit as their primary and property must be at least 5 years old
    • Condos
      • Follow agency requirements 
      • FHA loans are ineligible for single unit approvals 
    • Manufactured homes
      • Not eligible on VA or Freddie Mac loans
    • Mixed-use properties
      • No more than 15% of a property can be used for business purposes and must follow agency requirements
  • Min FICO = 640
    • Min FICO = 660 (manufactured homes)
  • Max DTI = 50% with Approve/Eligible findings
    • Max DTI = 45% (manufactured homes) 
  • Max Cashback = $300
  • Maximum principal reduction = $1,000
  • Borrower(s) cannot own any other properties – excluding veterans or active military members 
  • Conforming loan limits ONLY – no High-Balance 
  • Loan must be originated in the broker channel – no correspondent 
  • Florida Hometown Heroes Second Mortgagee Clause required to satisfy Homeowner’s Insurance requirements 
  • Cannot waive the UW fee
  • No non-occupying co-borrowers or co-signors  
  • No escrow waivers 
  • No co-ops, single-wide manufactured homes or land trusts 
  • No temporary rate buydowns 
  • No standalone or piggyback HELOCs

TRANSFER TAXES AND DOC STAMPS

Florida Hometown Heroes loans are exempt from Intangible Taxes. However, Doc Stamps (documentary stamps) should still be disclosed. Doc Stamps can be charged on both the deed and the mortgage.

  • The Doc Stamp fee is the purchase price x 0.007 (For Miami Dade county = purchase price x 0.006)
  • Intangible taxes must be removed from Transfer Taxes line in Section E of the CD prior to requesting the final closing package.

 

Email loans@par4mortgage.com or call 720-397-0056 for more info.