Have you heard about the forthcoming Hometown Heroes program revamp launching on July 1? If not – read on for details on the program, who is eligible and what changes to expect.
What is Hometown Heroes?
Hometown Heroes is Florida’s down payment mortgage assistance program for first time buyers. The program provides up to 5% ($35,000 max) of down payment and closing cost assistance to those meeting eligibility requirements. Depending on the program selected, requirements include income (driven by county income limits), credit (640 minimum) and employment. The funding comes as a 0%, non-amortizing, 30-year second mortgage on the property. No payments are required over the life of the loan. Full payment comes due should the property be sold, transferred, refinanced or is no longer owner occupied. Owners are welcome to make payments over the life of the loan should they want to pay it off early. Florida Housing follows the IRS definition of First Time Home Buyer – meaning they can buy under the program as long as they never owned nor lived in owned property (as a primary residence) the past 3 years.
Who is Eligible for Hometown Heroes?
There are two groups of eligibility for the program. The first group includes veterans, active military, spouse of a deceased veteran or retired. The second group includes Florida based employees who work full-time, 35 hours a week for a Florida based business. The second group needs to work for an employer with a brick and mortar location in state. For example: a virtual employee working at home in St. Johns would qualify if their employer has an office location in Miami. A virtual employee based in Jacksonville, who works for a company in Washington, D.C. would not be eligible under this program. These are changes from prior programs in which the recipient group was limited to public sector employees. Those who are self-employed are eligible as long as the 1099 or Schedule C show a Florida address. Businesses must be registered with www.Sunbiz.org.
Noticeable Changes to Hometown Heroes Program:
Come July 1, noticeable changes include:
- Broadening the scope of the program to include all Florida-based employees
- Program eligibility raised from $25,000 to $35,000
What remains the same?
- The property being purchased serve as the primary residence and be occupied by a Florida resident.
- Property must be an attached or detached 1-unit dwelling, 2-4 unit property, condo or manufactured home (’94 or newer).
- There is a one-time participation in the program
- The first mortgage must be through Florida Housing
Hometown Heroes Program Revamp
Overall the program adjustments look to open the funds to a wider group of individuals. While the program technically opens on July 1st, fund from the 2022-2023 program are exhausted and reservations are being accepted for the 2023-2024 program. With a fixed $100 million in allocated funding, funds will not be available indefinitely. If this is a program that you are interested in – you would be wise to pursue funding sooner rather than later.
Florida is going to great lengths to strengthen their commitment to first time buyers. If you are interested in the Hometown Heroes program, please feel free to reach out to me and let’s get you in touch with a lender who can support you.