Hey there! Buying your first home can feel like a daunting journey, especially with all the financial hurdles along the way. But here’s some good news: the City of Clearwater offers a fantastic program designed to make this process a bit smoother for you.

What is it?

This program provides financial assistance to help cover a portion of your down payment and closing costs when purchasing a home within Clearwater city limits. It’s funded through the federal HOME Investment Partnership (HOME) and the State Housing Initiatives Partnership (SHIP) programs.

How does it work?

• The assistance comes in the form of a loan up to $75,000 (for loans approved after July 1, 2024).
• Half of this loan is amortized over 20 years, meaning you’ll start making payments on this portion after a five-year deferral period.
• The other half is deferred and forgiven at the end of the loan term, provided you adhere to the program’s requirements.
• If you sell the home before the loan matures, the outstanding balance becomes due.

Who’s eligible?

• Income Requirements: Your household income must fall within the program’s guidelines. This includes the income of all household members aged 18 and over.
• First-Time Buyer Status: You don’t have to be a first-time homebuyer, but you shouldn’t own another property at the time of closing.
• Personal Contribution: You’re expected to contribute at least 1% of the purchase price from your own funds.
• Residency: The property must be your primary residence and located within Clearwater’s city limits.

Benefits

• Financial Relief: Receiving up to $75,000 can significantly reduce the immediate financial burden of purchasing a home.
• Deferred Payments: No payments are required on the deferred portion, and payments on the amortized portion don’t start until after five years.

Considerations

• Loan Repayment: If you decide to sell the property before the loan term ends, you’ll need to repay the remaining balance.
• Property Requirements: The home must meet certain safety and code standards. If it’s an older property (built before 1978) with peeling or chipping paint, a lead inspection is mandatory, and any lead issues must be resolved before closing.

How to Apply

1. Check Your Eligibility: Review the income and property requirements to ensure you qualify.
2. Contact a Lender: Get pre-qualified for a first mortgage through a bank or mortgage lender.
3. Attend a Homebuyer Education Workshop: Complete a HUD-certified workshop to gain valuable insights into the home-buying process.
4. Property Inspection: The city will conduct an inspection to ensure the home meets all necessary standards.
5. Work with Approved Agencies: Reach out to one of the city’s approved non-profit housing agencies to guide you through the application process:

Approved Housing Agencies

• Tampa Bay Neighborhood Housing Services
  Address: 608 N. Garden Ave., Clearwater, FL 33755
  Phone: (727) 405-1313
  Email: JThompson@tampabaynhs.org
• Suncoast Housing Connections
  Address: 2139 NE Coachman Road, Clearwater, FL 33758
  Phone: (727) 442-7075
  Email: theresa@suncoasthc.org

Additional Information

• Geographic Availability: This program is specifically for properties within the city limits of Clearwater, Florida.
• Funding Sources: The program is funded through the federal HOME Investment Partnership (HOME) and the State Housing Initiatives Partnership (SHIP) programs.

Pros

• Substantial financial assistance up to $75,000.
• Deferred and partially forgivable loan terms.
• Support through approved non-profit housing agencies.

Cons

• Repayment required if the property is sold before the loan term ends.
• Strict property standards, especially for older homes.
• Mandatory homebuyer education workshop.

Application Process

1. Ensure income and property meet program criteria.
2. Obtain pre-qualification for a first mortgage.
3. Complete a HUD-certified homebuyer education course.
4. Undergo a city-conducted property inspection.
5. Work with an approved non-profit housing agency to submit your application.

Program Type

This is a down payment and closing cost assistance program.

Program Availability

The current program details, including the maximum loan amount of $75,000, are effective for loans approved after July 1, 2024.

Sources

• City of Clearwater Purchase Assistance for an Existing Home
• City of Clearwater Purchase Assistance for New Construction
• Suncoast Housing Connections Down Payment Assistance