Bootcamp For Buyers

Florida Homeownership Loan Program (FL HLP)

The Florida Homeownership Loan Program (FL HLP), offered by the Florida Housing Finance Corporation, provides financial support to eligible homebuyers in the form of a second mortgage. This program helps cover down payments and closing costs, reducing the upfront expenses of purchasing a home and making homeownership more attainable for Florida residents.

Benefits

  • Provides up to $10,000 in assistance for down payments and closing costs through a second mortgage.
  • The second mortgage features a low, fixed interest rate with a 15-year repayment term, ensuring affordable monthly payments.
  • Can be combined with Florida Housing first mortgage programs to create a comprehensive financial solution for homebuyers.
  • Helps reduce the financial burden of buying a home, particularly for first-time and eligible repeat homebuyers.

Eligibility Requirements

  • Applicants must qualify for a Florida Housing first mortgage to access FL HLP funds.
  • Income limits apply and vary based on household size and the location of the property being purchased.
  • The property must be located in Florida and used as the buyer’s primary residence.
  • A minimum credit score of 640 is generally required, along with adherence to lender-specific underwriting criteria.
  • Participants must complete a homebuyer education course to prepare for the responsibilities of homeownership.

Additional Information

The Florida Homeownership Loan Program (FL HLP) is designed to make homeownership more accessible by providing critical financial assistance for upfront costs. Administered by the Florida Housing Finance Corporation, this program supports eligible residents in achieving stable and affordable homeownership while fostering stronger communities across the state.

Frequently Asked Questions About Our Program

What is the Florida Homeownership Loan Program (FL HLP)?

The Florida Homeownership Loan Program (FL HLP) offers eligible homebuyers up to $10,000 in down payment and closing cost assistance. This assistance is provided as a 3% interest, fully amortizing second mortgage with a 15-year term.

Who is eligible for the FL HLP?

Eligibility requires applicants to meet income and purchase price limits specific to their county and household size. Additionally, participants must be first-time homebuyers, defined as individuals who have not owned and occupied a primary residence within the past three years.

How does the FL HLP loan work?

The FL HLP provides a $10,000 second mortgage at a 3% interest rate, repayable in monthly installments over 15 years. If the property is sold, transferred, refinanced, or ceases to be the borrower's primary residence, the remaining unpaid principal balance becomes due.

Is the FL HLP loan forgivable?

No, the FL HLP loan is not forgivable. The outstanding balance must be repaid in full upon sale, transfer, refinancing, or if the property is no longer the borrower's primary residence.

Can the FL HLP be combined with other assistance programs?

Yes, the FL HLP can be combined with Florida Housing's first mortgage programs, such as FHA, VA, USDA, and conventional loans, to provide comprehensive assistance to homebuyers.

Are there credit score requirements for the FL HLP?

While Florida Housing does not specify a minimum credit score for the FL HLP, individual lenders may have their own credit requirements. It's essential to consult with your lender to understand the specific criteria applicable to your situation.

Is homebuyer education required for the FL HLP?

Yes, all applicants are required to complete a homebuyer education course approved by Florida Housing. This ensures buyers are well-informed about the home-buying process and responsibilities of homeownership.

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What types of properties are eligible for the FL HLP?

Eligible properties include single-family homes, townhomes, and condominiums that meet Florida Housing's guidelines. The property must be located in Florida and serve as the borrower's primary residence.

Are there income limits for the FL HLP?

Yes, income limits apply and vary by county and household size. These limits are established to ensure assistance is provided to those most in need and are subject to periodic adjustments.

Is there a maximum purchase price for homes under the FL HLP?

Yes, there are purchase price limits that vary by county. These limits ensure that the program assists in financing moderately priced homes suitable for low- to moderate-income buyers.

Can I use the FL HLP for a second home or investment property?

No, the FL HLP is intended for primary residences only. Applicants must occupy the purchased property as their primary residence.

What happens if I refinance my home?

If you refinance your home, the remaining unpaid principal balance of the FL HLP loan becomes due and payable. It's important to consider this when making decisions about refinancing your property.

Are there specific debt-to-income (DTI) ratio requirements?

While Florida Housing does not specify exact DTI ratio requirements for the FL HLP, individual lenders may have their own criteria. It's essential to consult with your lender to understand the specific DTI requirements applicable to your situation.

Is mortgage insurance required with the FL HLP?

Depending on the type of first mortgage loan and the loan-to-value ratio, mortgage insurance may be required. For example, conventional loans with less than a 20% down payment typically require private mortgage insurance (PMI).

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How do I apply for the FL HLP?

To apply, you must work with a Florida Housing-approved lender who will guide you through the application process, including verifying eligibility, assisting with necessary documentation, and explaining program requirements.

Is there a deadline to apply for the FL HLP?

There is no specific deadline to apply for the FL HLP. However, program availability is subject to funding, so it's advisable to begin the application process as soon as you are ready to purchase a home.

Are non-occupant co-borrowers allowed in the FL HLP?

No, all borrowers must occupy the property as their primary residence. Non-occupant co-borrowers and co-signers are not permitted under this program.

What are the repayment terms for the FL HLP loan?

The FL HLP loan is a 3% interest, fully amortizing second mortgage with a 15-year term. Monthly payments are required, and the remaining unpaid principal balance becomes due upon sale, transfer, refinancing, or if the property ceases to be your primary residence.

Can I use the FL HLP if I have owned a home before?

The FL HLP is primarily designed for first-time homebuyers. However, certain exceptions may apply, such as purchasing in targeted areas or being a qualified veteran. It's important to verify your eligibility with a Florida Housing-approved lender.

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