About The Hometown Heroes Loan Program
Florida Housing's Hometown Heroes Loan Program Makes Housing More Affordable For Frontline Community Workers
The Florida Housing Hometown Heroes loan program makes homeownership affordable for frontline community workers such as police officers, educators, firefighters, nurses, childcare employees and active military or veterans.
The program provides down payment and closing cost assistance to first-time, income-qualified homebuyers who purchase a primary residence in their communities. They also enjoy a lower first mortgage rate and special benefits.
Eligibility
More and more Florida’s frontline workers, including law enforcement officers, firefighters, educators, healthcare professionals, childcare employees and active military or veterans, are struggling to afford the rising costs of housing in their communities. The new Hometown Heroes loan is designed to help these heroes overcome this challenge and purchase a primary residence in the community where they serve.
The program provides down payment and closing cost assistance to eligible frontline workers and their families who are unable to afford their own home due to a low income. It also offers a lower first mortgage rate and additional special benefits for those who currently serve or have served in the United States military or are veterans.
Eligible borrowers will receive up to 5% of the mortgage amount (maximum $25,000) in down payment and closing cost assistance. This assistance is in the form of a 0%, non-amortizing, 30-year deferred second mortgage that 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 his/her primary residence.
In addition, qualifying borrowers will have access to a variety of mortgage products that can be used to pay for the home of their dreams, including fixed-rate, adjustable-rate and interest-only loans. These options are available through FHA, VA, RD, Fannie Mae and Freddie Mac.
Many eligible borrowers will also have the option to take advantage of a mortgage credit, which can be used for closing costs and other expenses associated with the mortgage. This credit can be applied toward the purchase of a new or existing home.
The program also has certain rules regarding eligibility, such as defined income and purchase price limits. These limits will vary from county to county. In addition, a home may not be purchased with an interest rate exceeding the maximum allowed by the program.
Interested borrowers can learn more about the hometown heros loan by contacting UWM or one of their local AIME affiliate lenders. They will be happy to assist you in determining if you qualify and which loan option is right for you.
Down Payment Assistance
More and more Florida's frontline community workers, like firefighters, police officers, teachers, and nurses, are struggling to keep up with the soaring home prices. To help, Governor DeSantis launched a new program in 2022 to make housing more affordable for these critical workers.
The Hometown Heroes loan program is designed to make homeownership more accessible to the state's essential workers. It enables them to receive mortgage products and down payment and closing cost assistance through participating lenders, which originate and underwrite the loans.
Currently, the program offers up to $25,000 in down payment assistance through a second mortgage that's added on to a person's primary mortgage. The down payment assistance is offered in the form of a 0%, non-amortizing, 30-year deferred second mortgage that becomes due and payable in full if a homeowner sells, refinances, transfers the property, or no longer occupies it as their primary residence.
In addition to down payment assistance, the program also offers a variety of benefits and discounts for first responders, military personnel, and teachers. This helps them save money on items such as groceries, clothing, and entertainment.
This program is a good way for communities to show support and recognition for their local first responders and military personnel. It also helps raise awareness about the sacrifices that these heroes have made and how they serve their communities.
One of the biggest obstacles that frontline community workers faced when they were looking for a home was finding financing. This was due to limitations on lenders who were willing to provide mortgage expertise and funding.
The Hometown Heroes Loan Program changed that by allowing Florida's essential workers to get the mortgage expertise and funding they need. This makes it easier for them to own a home and live in the community they love.
To qualify, you must have an eligible occupational position that's highlighted in your professional license or certificate and be a current Florida resident. You should also have a high credit score and meet the income and purchase price requirements for your particular county. If you have a disability, you may be eligible for additional down payment assistance.
Closing Cost Credit
The closing cost credit offered through the hometown heros loan program is a valuable tool to help Florida frontline workers such as nurses, paramedics, teachers, law enforcement officers, and other essential workers obtain homes. This initiative also serves as a way to recognize and honor the sacrifices made by these individuals.
The Florida Hometown Heroes Loan Program is administered by the state’s housing finance agency, Florida Housing. This agency oversees federal and state funds to support Floridians in obtaining low-cost rental or homeownership properties.
In partnership with Premier Mortgage Resources LLC, the new program offers a closing cost credit of up to $1,295 to qualifying first responders and health care professionals. In addition, borrowers may qualify for an additional credit amount if they use a participating real estate agent.
To receive this credit, borrowers must apply for the FL Hometown Heroes First Mortgage through a participating lender. They must also complete a pre-purchase homebuyer education course that is approved by the Housing and Urban Development Department (HUD) or National Industry Criteria for Homeownership Education and Counseling standards.
Moreover, applicants must meet certain income requirements and home price limits. They must not have owned or occupied a primary residence within the last three years. The down payment and closing cost assistance is available in the form of a 0%, non-amortizing, 30-year second mortgage, which is equal to 5% of the value of the first mortgage. This second mortgage is not forgivable and becomes due upon sale, refinancing, transfer of deed, or if the homeowner no longer occupied the property as their primary residence.
This down payment and closing cost assistance is only available to Florida residents who are eligible for a mortgage loan through the FL Hometown Heroes program. This includes all income-qualified critical workers, including firefighters, police officers, medical professionals, healthcare professionals, childcare employees, teachers, and active military or veterans.
Interest Rates
The Florida Hometown Heroes loan program offers a variety of interest rates to help first-time homebuyers in Florida purchase their first homes. It’s available for many occupations and income levels, including law enforcement officers, firefighters, educators, healthcare professionals, childcare workers, military service-members, and others who have a critical role in their community.
In the current housing market, it’s hard for these essential employees to afford a home without assistance. With median house prices in Florida increasing by more than 58 percent over the past six years, many frontline workers are struggling to keep up with their mortgage payments, making homeownership a goal that seems out of reach for many.
For these hardworking individuals, the key to achieving homeownership is getting qualified for a low-interest mortgage that allows them to make the down payment and closing costs they need to purchase a home. In order to take advantage of the hometown heros loan program, it’s important for borrowers to meet with a mortgage professional who can evaluate their situation and determine which mortgage products may be best for them.
This program is available through a special partnership between UWM and the American Institute of Mortgage Professionals (AIME). Together, they are committed to helping borrowers nationwide who are interested in becoming homeowners.
Through the program, borrowers are eligible to receive up to 5% of their first mortgage amount in down payment and closing cost assistance. This down payment and closing cost assistance is available in the form of a 0%, non-amortizing second mortgage that becomes due and payable when the borrower sells the home, refinances it, or transfers it.
The hometown heros loan is available on both conventional and FHA financing. It enables eligible homebuyers to obtain a lower first mortgage rate and specialized benefits, including lower PMI.
In addition, the program’s first mortgage can include a 0% down payment option for those with less than 20% down payment and a $0 down payment option for those with more than 20% down. In addition, the hometown heros loan is also available on both Freddie Mac and Fannie Mae loans.
