HOME FUNDING

Starting July 1, 2024, the Florida Hometown Heroes (HTH) Housing Program is getting a significant boost that local workers in Florida won’t want to miss. The additional $100 million in funding this program is set to receive will allow aspiring Florida first-time homebuyers to apply for down payment assistance. With rising housing prices, the down payment amount required to purchase a new home is also increasing. Due to this increase, many Floridians are getting priced out of the market. The Florida Hometown Heroes Down Payment Assistance program will make the dream of homeownership for local Florida workers more accessible, with up to $35,000 to use towards down payment and closing costs.

 

The program funds went fast last year when the down payment assistance funds were increased from $25,000 to $35,000. But here’s the great news: more funding has been provided, and first-time homebuyers could again be eligible for up to $35,000 or 5% of the loan amount, whichever is less. But remember, these funds are available on a first-come, first-served basis—once they’re gone, they’re gone! Contact me today to get you connected with a great mortgage team.

 

Who is eligible for Florida Hometown Heroes DPA?

The Florida Hometown Heroes Housing Program was initially designed with Florida’s frontline heroes in mind—law enforcement officers, firefighters, educators, healthcare professionals, childcare staff, active military members, and veterans. Now, Florida Housing and Governor DeSantis recognize that all full-time workers in Florida play a role in shaping our communities and making Florida a fantastic place to live and work.

Starting July 1, eligibility is broadening. Now, if you work full-time (35+ hours per week) for any business in Florida and meet income eligibility and program requirements, you could qualify for this incredible opportunity. That’s right, the program is moving away from career-specific eligibility to focus on income, making more first-time homebuyers than ever eligible for down payment assistance. Any income-eligible first-time homebuyer in Florida who meets the program requirements is invited to apply.

How do I qualify for Florida Hometown Heroes DPA?

Are you concerned about whether your employment qualifies? You are eligible if you’re employed by a business with a physical presence in Florida—like Mortgage Equity Partners, which has offices here but is headquartered out of state.

Program Highlights:

• Eligibility for lower-than-market rates on FHA, VA, USDA/RD, Fannie Mae, or Freddie Mac First Mortgages.
• Down payment and closing cost assistance up to 5% of your first mortgage loan amount, maxing out at $35,000.
• Assistance is provided as a 0%, non-amortizing, 30-year deferred second mortgage, which is repayable upon selling the property, refinancing the first mortgage, transferring the deed, or if the property is no longer your primary residence. Note that this loan is not forgivable.

To be eligible for Florida Hometown Heroes DPA:

• You must be a first-time homebuyer, which means no homeownership in the previous three years.
• Your income must not exceed 150% of your county’s Area Median Income (AMI), and your loan must meet your county’s loan limit requirements.
• Refinance transactions are not eligible for the FL Hometown Heroes Program.
• Borrowers must take an approved HUD homebuyer education course.
• Single-family residences, townhomes, and FHA-approved condo purchase transactions are eligible.
• Lot and land loans are not eligible for this program.

Thanks to Governor Ron DeSantis, these funds are set to make a real impact for first-time homebuyers in Florida—but they won’t last forever. Planning is key. Reach out to an MEP loan officer today to find out how you can make the most of the new funds received for The Florida Hometown Heroes. Don’t miss your chance to realize your homeownership dreams. Act now and take the first step towards your new home in the Sunshine State.

 

FHA HOME LOAN

What Are FHA Loans? FHA loans are mortgages insured by the Federal Housing Administration. These loans are designed to help low- to moderate-income families achieve homeownership. The insurance protects lenders against losses if the borrower defaults on the loan, allowing lenders to offer more favorable terms.

Key Features of FHA Loans:

1. Lower Down Payments:

   • FHA loans typically require a lower down payment than conventional loans. Borrowers can put down as little as 3.5% of the home's purchase price if they have a credit score of at least 580. Borrowers with lower credit scores may still qualify but might need to put down 10%.

2. Flexible Credit Requirements:

   • FHA loans are more forgiving of poor credit scores. While conventional loans usually require a credit score of 620 or higher, FHA loans can be available to borrowers with scores as low as 500.

3. Competitive Interest Rates:

   • Interest rates on FHA loans are often competitive with those on conventional mortgages, sometimes even lower, because the government insures the loan.

4. Higher Debt-to-Income Ratios:

   • FHA loans allow for higher debt-to-income ratios, meaning borrowers can qualify with higher levels of existing debt compared to their income.

5. Assumable Loans:

   • FHA loans are assumable, which means that if you sell your home, the buyer can take over your mortgage under its current terms. This can be a selling point if interest rates have risen since you obtained your loan.

6. Closing Costs:

   • The FHA allows sellers, builders, or lenders to pay some of the borrower’s closing costs, such as appraisal fees, credit report costs, or title expenses.

Types of FHA Loans

1. FHA 203(b) Loan:

   • The most common FHA loan, used for purchasing or refinancing a primary residence.

2. FHA 203(k) Loan:

   • Designed for homebuyers wanting to purchase and renovate a home with a single loan. There are two types:
     • Standard 203(k): For major renovations.
     • Limited 203(k): For smaller repairs and improvements.

3. FHA Streamline Refinance:

   • An option for current FHA loan holders to refinance with reduced paperwork and lower costs, often without a new appraisal.

4. FHA Energy Efficient Mortgage (EEM):

   • Allows borrowers to finance energy-saving improvements into their FHA loan.

5. FHA Section 245(a) Loan:

   • Also known as the Graduated Payment Mortgage, this loan starts with lower payments that gradually increase over time, making it ideal for borrowers expecting rising incomes.

Benefits of FHA Loans

1. Accessibility:

   • FHA loans open up homeownership to a broader range of people, including first-time homebuyers, those with lower credit scores, and those with limited savings for a down payment.

2. Lower Down Payment:

   • With down payments as low as 3.5%, FHA loans make it easier for buyers to purchase a home without needing a large amount of savings.

3. Credit Flexibility:

   • More lenient credit requirements help those with imperfect credit histories qualify for a mortgage.

4. Lower Interest Rates:

   • Competitive rates help reduce the overall cost of borrowing.

5. Potential for Higher Loan Limits:

   • FHA loan limits vary by location, allowing borrowers in high-cost areas to obtain loans for more expensive properties.

Drawbacks of FHA Loans

1. Mortgage Insurance Premium (MIP):

   • FHA loans require an upfront mortgage insurance premium (UFMIP) and an annual MIP. These premiums increase the cost of the loan.

2. Property Standards:

   • Homes purchased with an FHA loan must meet certain property standards to ensure they are safe, sound, and secure.

3. Loan Limits:

   • FHA loan limits are set by county and can be lower than the limits for conventional loans, potentially restricting the purchase price of the home.

4. Primary Residence Requirement:

   • FHA loans are only available for primary residences, not for investment properties or second homes.

Conclusion

FHA loans are an excellent option for individuals who may not qualify for conventional mortgages due to lower credit scores, limited savings, or higher existing debt. By providing more accessible lending terms, the FHA helps more people achieve the dream of homeownership. However, borrowers should carefully consider the costs associated with mortgage insurance and the property standards required by the FHA.