Florida Down Payment Assistance Program FAQ – 2019
Hardest Hit Fund for 2019 – $15,000 “Forgivable Funds”
Starting March 4, 2019
Buyers may qualify to receive up to $15,000 to use for their down payment & closing costs when purchasing a home. The details of the 2019 Bond Program have not been released yet, but will likely be like the 2018 guidelines. Here are some details about the Florida Down Payment Assistance program. This program is for available in our area for DUVAL & CLAY Counties only and starts MARCH 4, 2019
What is the Florida Down Payment Assistance Program?
This is a program sponsored by the state of Florida and offered through various lending institutions that provides up to $15,000 in down payment & closing cost funds for first time home buyers (usually defined as not owning a home within the last 3 years). These bond monies are issued as a loan & the balance sits as a 2nd mortgage at ZERO interest with ZERO payments and does not need to be repaid until the home is sold or refinanced IF the borrower stays in the home for FIVE years. Also, 20% of the 2nd mortgage is forgiven each year. For example, after 3 years only $4,000 would need to be repaid if you decided to sell or refinance.
Restrictions of the Florida Down Payment Assistance Program?
DO NOT WAIT….There is a certain pool of funds in this program and once the funds are gone, the program will not likely be available until 2020! $20 Million was just released starting March 4, 2019 and that is to fund to 5 qualifying counties in Florida.
Some of the potential homebuyers requirements are:
- The loan used to procure the home must be a 30 year fixed rate mortgage
- The home buyer must be a first time home buyer (typically has not owned a home in Florida for 3 or more years)
- A minimum credit score of 640 is required
- The home buyer must live in the home and it cannot be a rental or second residence
- There are income limits as well as home purchase price limits
- The home must be a single family property. Condos/Townhomes require prior approval.
- Home buyers cannot use the funds to receive cash back at closing.
- Mobile Homes do NOT qualify for this bond program
What can the $15,000 be used for?
The funds received from the Florida Bond Loan Program can only be used for closing costs and assistance with down payment. If the total closing costs and down payment totals less than $15,000, the additional funds can then be applied to the loan balance.
What types of loans are applicable to work with the Florida Down Payment Assistance Program?
The Florida Down Payment Assistance Program will work with and accept FHA, Conventional and VA loans. The Susan Kennedy Team (904-880-6700)can refer you to some very experienced local lenders who can assist you in qualifying for this program. The mortgage rates can be slightly higher…about .025% on average when using this program. It is a nominal average increase in a monthly payment though.
What types of homebuyers benefit most from the Florida Down Payment Assistance Program?
- For someone that is trying to make the move from being a renter to a homeowner without the downpayment & monies for closing costs. This is also a great option for someone buying a home that may need a few upgrades like new appliances, flooring or fenced yard. Use your saved monies for these items & the bond monies for closing.
- If you have the money for down payment but need closing costs covered, this program will help with that. In this competitive market, you will have some room to negotiate on the sales price since you will have some monetary assistance from the bond.
Need More Info & Help??
We’ve got you covered! Let The Susan Kennedy Team (904-880-6700) guide you to the most experienced lenders who can help you qualify for this Florida Down Payment Assistance Program. Next step….let’s go out and find you a home!