Down Payment Assistance (DPA)
Second Mortgage Loan Terms:

• DPA is a lien secured by a second mortgage
  
• Up to 5% of the total loan amount with a maximum of $25,000
  
• May be applied to closing costs, down payment, prepaids, upfront funding fee, or other related program and mortgage loan fees and expenses
  
• 30-year second mortgage at 0%, non-amortizing, and deferred with zero monthly payment
  
• Lien is NOT forgivable
  
  
• Repayment is deferred until the event of the sale, transfer of deed, refinancing, satisfaction of the first mortgage, or when the mortgagor ceases to occupy the property

Product Highlights:

• 30-year fixed rate first mortgage loan
• FHA, VA, Conventional, and USDA
  
• Primary residence only
  
  
• Property must be in Florida
  
  
• Must be able to permanently reside in the US
  
  
• Must occupy the home within 60 days

• Property types:
  
  
• 1-unit Single Family/PUDs (includes townhomes)
• Condominiums
• 2–4-unit properties are restricted to 95% LTV (conventional must attend landlord training)
• Repair Escrows are not permitted
• Manufactured home properties are not eligible
  
  
• Purchase transactions only
  
  
• One borrower must be one of the following at application:
  
  
• Licensed or certified front-line worker
• Will need a copy of the state license or certification
• Must be actively employed full-time in Florida in a position in which their license or certification is held
• A verification of employment must show full time as defined by the employer
• Active military, veterans with any discharge other than dishonorable
• A surviving spouse of a veteran, but is only eligible to use a VA loan
• Fully executed heroes loan program attestation form signed by borrower
  
  
• Minimum 640 credit score
  
  
• Borrowers must generate at least 2 credit scores
  
  
• Maximum debt-to-income (DTI) ratio varies by loan product as follows:
  
  
• Conventional, FHA, and VA loans – maximum DTI 50%
• USDA loans - maximum DTI 45%
  
  
• All borrowers must be a first-time homebuyer unless they have an exemption status
  
  
• Have not owned nor occupied a primary residence within the last 3 years
• Do not claim their mobile home as real property (it is located on a rental lot / land)
• Veterans, active duty, and their spouses are exempt from the first-time homebuyer requirement
• Surviving spouses must be a first-time homebuyer and is not exempt
  
  
• There are no purchase price limits
  
  
• Loan amount restrictions vary by county.  Duval, Clay, and St Johns County are:
  
  
• FHA is $472,030
• VA and Conventional is $726,200
  
  
• Income limits vary by county and is 150% of the area median income
  
  
• Duval, Clay, and St Johns County are $118,950
• Income eligibility is determined by the income used in underwriting
• Only income reflected on the loan application is considered
• Household income is NOT used
• Non-occupying co-signor income is included
  
  
• Minimum borrower contribution varies as follows:

• FHA/VA/USDA- no minimum borrower contribution
• Conventional, varies by number of units, as follows:
• 1-unit property- no minimum borrower contribution
• 2-4-unit property- 3% minimum borrower contribution
  
  
• Cash back from DPA Funds is not allowed
  
  
• Any potential cash back should be applied as principal reduction to the 1^st mortgage
• The maximum principal amount allowed is $1,000, if exceeded the loan amount must be reduced      
• Cannot be used for an appraisal gap, but the borrower can use their own funds
• Cannot be used to pay off borrower debt, but the borrower may use their own funds
  
  
• Homebuyer education is required by the “hero” borrower but not required by the spouse

Click Here to View a PDF of Occupations Eligible
For the Hometown Heroes Program with m