Florida Hometown Heroes Program
As of July 1, 2023 - Program has Expanded to All First Time Homebuyers
The Florida Hometown Heroes Housing Program aims to make homeownership affordable for eligible members of the community workforce. The program has expanded who can apply. It now focuses on first-time homebuyers.
The grant amount has also increased. It went up from $25,000 to $35,000 starting on July 1, 2023.
This program specifically targets first-time, income-qualified homebuyers by providing them with down payment and closing cost assistance. It enables them to purchase a primary residence in the community where they work and serve. The Florida Hometown Heroes Loan Program provides a lower interest rate on the first mortgage. It also offers special benefits to people who have served or are currently serving in the military.
Here are the key details of the program:
Eligibility: Full-time members of the workforce employed by a Florida-based employer are eligible for the program. They can get lower interest rates on different types of first mortgages. This includes FHA, VA, RD, Fannie Mae, and Freddie Mac loans. Additionally, they can enjoy reduced upfront fees, with no origination or discount points. The program also provides down payment and closing cost assistance.
Down Payment and Closing Cost Assistance: Borrowers can get up to 5% of their first mortgage loan. The maximum amount of help is $35,000. This financial support helps cover the initial expenses associated with purchasing a home, making it more affordable and accessible for eligible individuals.
Deferred Second Mortgage: The down payment and closing cost help comes from a 0% interest second mortgage. This mortgage does not require payments for 30 years. This means that borrowers do not have to make regular payments on this second mortgage. The full amount must be paid in certain situations. This includes several situations. It happens when the property is sold. It also occurs when the first mortgage is refinanced. Additionally, it applies when the deed is transferred. Finally, it includes cases when the homeowner moves out and no longer lives there. It's important to know that the Florida Hometown Heroes loan is not forgivable. This means you must repay it according to the program's rules.
The Florida Hometown Heroes Housing Program helps eligible community workers buy homes. It offers financial assistance and special benefits to support them. This program helps people achieve their dreams of owning a home. It also values their service to the community and the country.
Introduction: What is the Florida Hometown Heroes Program?
The Florida Hometown Heroes Program, also called the Florida Hometown Heroes Housing Program, helps frontline workers buy homes. This mortgage program makes home buying more affordable for these essential workers in Florida. MortgageQuote.com is happy to support Florida Hometown Heroes with this program. You can apply now to get started.
Minimum credit score is 640, and for manufactured homes is 660. The maximum loan-to-value is 97%. The combined loan-to-value or high credit loan-to-value can go up to 105%. This may vary for manufactured homes and 2-4 unit properties.
Saving for a mortgage can be difficult, especially when living costs are rising. According to statistics, the average monthly mortgage payment in Florida was $1,530 in 2022. The Hometown Heroes program helps people with frontline jobs buy homes more easily.
If you qualify for the Florida Hometown Heroes Program, you can get many benefits. These include lower mortgage rates and help with closing costs. You can also receive assistance for your down payment on a house or apartment.
Florida Hometown Heroes Program: The details
Eligible community and frontline workers can receive the following benefits via the Florida Hometown Heroes Program:
- Lower than standard market rates on first FHA, VA, RD, Freddie Mac and Fannie Mae mortgages
- Discounted upfront fees
- No origination or discount points
- Down payment and closing cost assistance: applicants can get up to 5% of their first mortgage loan. The maximum amount is $35,000 for this support.
- Downpayment and closing costs assistance is provided through a 0% non-amortizing, 30-year second mortgage. The Hometown Heroes loan is not forgivable. This means the loan is put on hold. It must be paid in full when the property sells. It is also due when the first mortgage is refinanced. The loan is payable when the deed is transferred or when the home is no longer the owner’s main residence.
Types of Hometown Heroes mortgage products
Florida’s Hometown Heroes program offers five mortgage options. These include three government loans and two conventional mortgages. These include:
1. Florida First Heroes: FL First mortgages are available for eligible first-time buyers. These loans come from FHA, VA, and USDA-RD. Buyers can access 30-year fixed-rate mortgages and are automatically eligible for down payment support for their second mortgage.
2. FL HFA Preferred Heroes- Fannie Mae: eligible applicants qualify for a 30-year fixed-rate mortgage from Fannie Mae. This product is for buyers who earn less than 80% of the median income. It helps them access mortgage programs. Individuals also benefit from down payment and closing costs assistance through a second mortgage.
3. FL HFA Advantage Heroes- Freddie Mac: Freddie Mac offers eligible applicants access to 30-year, fixed-rate mortgages. Loans are designed for individuals who earn less than 80% of the average median income. Like the other loans in the Hometown Heroes Program, buyers can get help with closing costs and down payments. This assistance comes through a second mortgage.
Who is eligible for a Hometown Heroes mortgage in Florida?
As of July 1, 2023 - Program has Expanded to All First Time Homebuyers
The Florida Hometown Heroes mortgage program is open to a wide range of frontline workers. There are eligibility criteria in place, including occupations, income and loan limits.
1. Eligible occupations (prior to July, 1, 2023)
Here is a list of the occupations included but not limited to within the program:
- Sworn law enforcement officer
- Certified correction officer
- Correctional probation officer
- Juvenile detention officer
- Juvenile probation officer
- Firefighter
- Certified paramedic
- Certified EMT (emergency medical technician)
- 911 public safety communicator
- Certified K-12 educators, including classroom teachers, careers advisers, librarians, media specialists,
- social workers, school counselors and school psychologistsv
- Licensed or registered childcare provider
- Childcare instructor
- Registered nurse
- Licensed practical nurse
- Advanced practice registered nurse
- Certified registered nurse anesthetist
- Clinical nurse specialist
- Certified nurse midwife
- Certified nursing assistant
- Home health aide
- Healthcare practitioners, including physicians, physician assistants and anesthesiologists
- Anesthesiologist assistant
- Psychiatrist
- Certified medical assistant
- Acupuncturist
- Osteopathic physician
- Chiropractic physician
- Certified chiropractic physician’s assistant
- Podiatric physician
- Certified podiatric X-ray assistant
- Naturopathic physician
- Pharmacist
- Nuclear pharmacist
- Pharmacy technician
- Dentist
- Dental hygienist
- Dental assistant
- Speech-language pathologist or audiologist
- Speech-language pathology assistant or audiologist assistant
- Nursing home administrator
- Occupational therapist, occupational therapist assistant or occupational therapist aide
- Certified or registered respiratory therapist
- Licensed or registered dietician, nutritionist or nutritional counselor
- Dietetic technician
- Athletic trainer
- Prosthetist, orthotist, prosthetist orthotist, pedorthist, prosthetist, orthotic fitter and orthotic fitter assistant
- Electrologist
- Massage therapist
- Clinical laboratory personnel, including laboratory directors, supervisors, technologists blood gas analysts and laboratory testing technicians
- Accredited phlebotomist
- Licensed medical physicist
- Certified basic X-ray machine operator, radiologic technologist, radiology assistant or general radiographer and specialty technologists
- Genetic counselor
- Optician or optician apprentice
- Certified optometrist
- Hearing aid specialist or specialist trainee
- Physical therapist or physical therapist assistant
- Psychologist or school psychologist
- Clinical social worker, marriage and family therapist or mental health counselor
- Child and adult protective services enforcement
- Veterinarian or veterinarian assistant or technician
- Assistant public defender
- Assisted living facility administrator
- Active military personnel
- Military veterans
- And possibly more job roles
2. Income limits
Income limits vary, according to the location. Limits for 2022 range from $118,950 to $153,750.
3. Loan limits
Florida Hometown Heroes FHA & USDA loan limits for 2022 range from $420,680 to $710,700. In 2022, Florida Hometown Heroes set the conventional and VA loan limits at $647,200. However, in Monroe County, the limit is higher at $710,700. For 2024, the conventional loan limit is $802,650.
4. Homebuyer status
The Hometown Heroes Program is for first-time buyers. To qualify, they must not own a primary home for three years before applying for the loan. It is important to note that this does not apply to active military personnel or veterans. Military personnel can apply for a Hometown Heroes loan regardless of whether it is their first purchase.
5. Credit rating
Lenders carry out credit rating checks before approving mortgage applications. To secure a loan, applicants must have a minimum credit score. If your credit score is low, it’s often beneficial to try to improve your rating before you apply for a mortgage or loan. This will increase your chances of borrowing money and it can often provide access to better rates. Tips to boost your credit score include:
- Pay bills on time
- ry to avoid using credit cards
- Keep up with loan repayments
- Try to avoid taking out any additional loans
- Pay off credit card debts monthly - leave a small balance may help
- Try to lower your debt-to-income ratio
6. Employment status
To qualify for a Hometown Heroes mortgage, you need to show that you have a full-time job. This job must meet the eligibility criteria. Employees must work at least 35 hours per week. Their employer must confirm that they have a full-time role if they don’t meet the 35-hour target.
How to apply for a Hometown Heroes mortgage
To apply for a Hometown Heroes mortgage, you need to show proof of your job, homebuyer status, and income. Examples of documents you may be asked to provide include:
- Fully executed Hometown Heroes Housing Loan Program Attestation from borrower pre-closing form State of Florida license or certification
- US Bank privacy form
- VOE: this validates full-time employment
When you apply for a mortgage through the Florida Hometown Heroes Program, you will need to fill out forms. Most of these forms are available online. The forms you complete will depend on the provider. If you are applying for an FHA loan, for example, you will need to add an FHA obligation and gift letter.
It is always beneficial to check the eligibility criteria in full before applying for a mortgage or loan. If you are not eligible, providers will reject your application.
What are the benefits of the Florida Hometown Heroes Program?
The Florida Hometown Heroes Program was created to help people buy homes more affordably. This program supports those who work hard to help others. It aims to ensure that local communities have access to important services. Offering benefits for over 50 professions, the ultimate goal is to help people to buy a home. The key benefits of the program include:
- Access to lower-than-market mortgage rates
- Reducing the cost of buying a home
- Enabling more people in essential roles to become homeowners
- Providing access to 0% interest loans
- Loans offer 5% of the total mortgage value up to a maximum of $25,000
- Assistance with down payments and closing costs
- Available to applicants who don’t earn more than 150% of the median income for the state or county
- Rewards full-time employment
Why is the Hometown Heroes Program so important?
House prices in Florida have surged in the last five years since 2022. In some parts of the state, prices are over 50% higher. The sharp rise in prices has made it more difficult to buy houses and apartments, especially for those on low to moderate incomes. Statistics from Glass Door suggest that the average annual wage for frontline workers in the US is $35,333. To buy the average home in Florida, the minimum wage a buyer would need to earn is around $62,000. There is a growing gap between wages and the cost of buying a house in Florida and costs are still rising. The Hometown Heroes Program is a targeted program, which provides financial support and assistance for frontline workers.
Another issue facing prospective homeowners is mortgage rates. In 2022, mortgage rates for 30-year fixed-rate loans continued to rise. This means that borrowing money to buy a new home has become much more expensive. The Hometown Heroes program helps frontline workers with financial aid. It also allows buyers to get lower rates than the current market rates.
From early June to late July 2022, the program gave over $12 million in down payment support. This helped more than 840 families.
Which types of properties are covered by the program?
Mortgage offers through the Hometown Heroes Program are available for prospective buyers who are looking for a primary residence. Applicants cannot borrow money to buy a property for business reasons or to refinance a current property. Eligible applicants can use a loan to buy a wide range of properties, including:
- A condo
- A detached home
- A single-unit attached home, such as a townhouse
- 2-4 unit properties
Understanding the second mortgage benefits
Home buyers who qualify for the Hometown Heroes Program can get help with down payments and closing costs. This assistance comes through a 0% 30-year second mortgage that does not require monthly payments. This loan is equal to 5% of the first mortgage up to a maximum of $25,000. The second mortgage cannot be forgiven. This means the full balance is due when the buyer makes their first mortgage payment. It is also due if they transfer the property deeds or stop using the property as their main home.
Summary
The new Florida Hometown Heroes Program is a mortgage program, which is designed to help frontline workers to buy a home. The program provides access to a range of mortgage products. Eligible individuals can access lower rates than the market offers. They can also get help with down payments and closing costs. The program is open to over 50 professions.
Mortgage FAQ
What is the Hometown Heroes Program?
The Florida Hometown Heroes Program is a mortgage program, which helps frontline workers to buy homes. It makes buying a property more affordable and accessible.
Who is eligible for help?
More than 50 professions are included in the eligibility criteria, including healthcare workers, firefighters and teachers. Workers must have full-time jobs and they must meet criteria linked to income and property purchase limits. In most cases, the program is designed to help first-time buyers. This does not apply to active military personnel or military veterans.
What are the main benefits?
Eligible applicants can save on borrowing money by accessing lower-than-market rates. They also benefit from financial assistance towards down payments and closing costs through a second mortgage.
How do I apply?
To apply for a mortgage through the Hometown Heroes program, you must provide documents. These documents must show that you meet the eligibility criteria. Check the requirements and seek advice if you have any questions or queries. It’s essential to ensure that you qualify before you apply.
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Program Details:
Frontline workers can get lower rates on FHA, VA, RD, Fannie Mae, or Freddie Mac first mortgages. They can also enjoy reduced upfront fees.
There are no origination points or discount points. Additionally, they can receive help with down payments and closing costs.
Borrowers can receive up to 5% of the first mortgage loan amount (maximum of $25,000) in down payment and closing cost assistance.
You can get help with your down payment and closing costs. This assistance comes as a 0% second mortgage. It is a 30-year loan that you do not have to pay back right away. This second mortgage must be paid in full when the property is sold. It is also due if the first mortgage is refinanced. The mortgage is due if the deed is transferred or if the homeowner moves out and no longer lives there as their main home. The Florida Hometown Heroes loan is not forgivable.