Hey there! I know buying your first home can feel like a daunting journey, but there’s a fantastic opportunity in Homestead that might make things a bit easier for you. Let’s dive into the details of the City of Homestead’s First-Time Homebuyer Program.

Program Overview

The Homestead Community Redevelopment Agency (HCRA) offers a First-Time Homebuyer’s Down Payment Assistance Program (DPA) to help low to moderate-income families achieve homeownership. This program provides financial assistance of up to $10,000 for purchasing a single-family home or townhouse within the Homestead CRA area.

If you’ve been a resident of the CRA for at least one year, you could be eligible for an additional $5,000, bringing the total assistance to $15,000.

For more details, visit the City of Homestead’s official website.

Funding Source

This initiative is funded by the Homestead Community Redevelopment Agency, focusing on revitalizing the area and promoting economic growth through increased homeownership.

Eligibility Criteria

• First-Time Homebuyer Status: You haven’t owned a home or been on a home’s title in the past three years.
• Residency: The property you wish to purchase must be within the HCRA boundaries.
• Income Limits: Your gross annual income should be at or below 120% of the Area Median Income (AMI) for Miami-Dade County. For example, for a family of four, the income limit is $126,250.
• Personal Investment: You’re required to contribute at least 1% of the property’s sales price towards the down payment or closing costs.
• Homebuyer Education: Completion of an 8-hour Homebuyer Education Counseling Course from a HUD-approved agency is mandatory.
• Pre-Approval: Obtain a pre-approval from a lending institution participating in the Miami-Dade Economic Advocacy Trust’s Homeowner Assistance Program.

Benefits

• Financial Assistance: Receive up to $10,000, or $15,000 if you’re a qualifying resident, to cover down payment and/or closing costs.
• Forgivable Loan: The assistance comes as a zero-interest, non-amortizing loan forgivable after ten years, provided you maintain the home as your primary residence throughout this period.

Potential Drawbacks

• Occupancy Requirement: You must use the property as your primary residence for at least ten years. Selling, renting, or transferring the property before this period ends will require repayment of the assistance.
• Asset Limitation: Applicants shouldn’t have more than $25,000 in combined liquid assets in the three months prior to applying.

Application Process

1. Homebuyer Education: Complete the required 8-hour course from a HUD-approved counseling agency.
2. Pre-Approval: Secure a pre-approval letter from a participating lending institution.
3. Application Submission: Gather necessary documents, including tax returns, pay stubs, bank statements, and proof of residency, and submit your application to the HCRA.
4. Property Inspection: Ensure the chosen property passes a certified inspection, confirming no more than $10,000 in necessary repairs.
5. Closing: Upon approval, proceed with the home purchase, utilizing the granted funds for down payment and/or closing costs.

Program Availability

This program is specifically available within the Homestead Community Redevelopment Agency (HCRA) area in Homestead, Florida.

Sources

• City of Homestead Programs & Grants
• First Time Homebuyer’s Program Guidelines

Pros and Cons

Pros:

• Financial Support: Substantial assistance towards down payment and closing costs.
• Forgivable Loan: No repayment required if you adhere to the program’s terms for ten years.
• Additional Funds for Residents: Long-term residents may receive extra assistance.

Cons:

• Primary Residence Requirement: Must occupy the home as your main residence for ten years.
• Asset Restriction: Limits on liquid assets may affect eligibility.
• Property Limitations: Homes needing significant repairs may not qualify.

Application Process

1. Complete Homebuyer Education: Attend an 8-hour course from a HUD-approved agency.
2. Obtain Pre-Approval: Get a pre-approval letter from a participating lender.
3. Prepare Documentation: Gather necessary financial and personal documents.
4. Submit Application: Apply through the HCRA with all required materials.
5. Property Inspection: Ensure the home meets program standards.
6. Finalize Purchase: Proceed to closing with the assistance funds.

Grant or Down Payment Assistance

This program offers down payment assistance in the form of a forgivable loan.

Program Timeline

The program is currently active. Specific start and end dates aren’t provided, so it’s advisable to contact the HCRA directly for the most current information.

Post Category

• Category: Florida First Time Homebuyer Program
• Subcategory: Miami-Dade County