UPDATE: Florida Housing will receive $100 million in additional Hometown Heroes funding beginning July 1st. This will allow the program to be extended to all working Floridians and assistance limits will be increased.

Call me at 904-514-6969 to learn more about this updated program!

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 $35,000 and minimum of $10,000

  • 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 at SMP

  • Purchase transactions only

  • One borrower must be one of the following at application:

    • Must be actively employed at a FL based employer with brick and mortar location

      • A verification of employment must show 35 hours week
  • Active military and 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 is 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

        • This is determined from the application declarations and not the tax returns

        • 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 $526,700
        • 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 $132,750
        • 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 1st 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
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