Hey there! Navigating the journey to homeownership can feel overwhelming, but the City of North Miami offers a fantastic First-Time Homebuyer Program designed to make this process smoother for you. Let’s break down the essentials of this program to help you understand how it can assist you in purchasing your first home.

Program Overview

The City of North Miami provides financial assistance to eligible first-time homebuyers aiming to purchase a single-family home, townhouse, or condominium within the city limits. This support comes in the form of a zero-interest, forgivable deferred loan, which can cover up to $40,000 of your home purchase.

The funds are sourced from the U.S. Department of Housing and Urban Development (HUD) through the HOME Investment Partnerships Program and the State of Florida’s State Housing Initiatives Partnership (SHIP) Program. Learn more here.

Eligibility Criteria

• First-Time Homebuyer Status: You must not have owned a home in the past three years. Exceptions may apply in cases such as divorce, relocation due to work, or a sudden disability that renders your current housing unsuitable.
• Income Requirements: Your household income should be at or below 80% of the area median income, adjusted for family size.
• Financial Readiness: You should have sufficient income to secure a private mortgage loan, manage existing debts, and maintain the new home. Additionally, you must have no more than $30,000 in liquid assets.
• Homebuyer Education: Completion of an 8-hour Homebuyer Education Workshop from a HUD-approved agency is mandatory. This workshop will equip you with valuable knowledge about the home-buying process and is valid for one year upon completion. Find approved agencies here.

Benefits

The primary benefit of this program is the zero-interest, forgivable deferred loan of up to $40,000, which can significantly reduce your out-of-pocket expenses for down payment and closing costs.

The loan is forgivable after a period—seven years for SHIP funds and up to fifteen years for HOME funds—provided you continue to occupy the home as your primary residence during this time. More details here.

Potential Drawbacks

• Affordability Period: You are required to maintain the home as your primary residence for a set affordability period (seven to fifteen years). Selling or renting out the property before this period ends may necessitate repayment of the assistance received.
• Funding Availability: Assistance is provided on a first-come, first-served basis and is contingent upon the availability of funds. It’s essential to apply promptly and ensure all your documentation is in order to avoid delays.

Application Process

1. Attend a Homebuyer Education Workshop: Enroll in and complete the required 8-hour workshop through a HUD-approved agency.
2. Gather Necessary Documentation: Prepare all required documents, including proof of income, tax returns, bank statements, and any other relevant financial information.
3. Submit Your Application: Complete the First-Time Homebuyer Assistance Application and submit it along with your documentation to the City of North Miami’s Housing and Social Services Department. Download the application here.
4. Secure Private Mortgage Financing: Obtain a mortgage commitment from a private lender to cover the remaining purchase price of the home.
5. Find Your New Home: Identify a suitable property within North Miami that meets the program’s criteria and falls within the maximum purchase price limits ($370,000 under HOME and $460,000 under SHIP).

Embarking on the path to homeownership is a significant milestone, and the City of North Miami’s First-Time Homebuyer Program is here to support you every step of the way. If you have any questions or need further assistance, don’t hesitate to reach out to the Housing and Social Services Department at (305) 893-6511. Happy house hunting!

Additional Information

Geographic Availability

This program is exclusively available for properties located within the City of North Miami, Florida.

Funding Source

The program is funded by the U.S. Department of Housing and Urban Development (HUD) through the HOME Investment Partnerships Program and by the State of Florida through the State Housing Initiatives Partnership (SHIP) Program. Read more.

Pros and Cons

Pros:

• Financial Assistance: Up to $40,000 in down payment and closing cost assistance.
• Zero-Interest Loan: The loan is forgivable after the affordability period, reducing long-term financial obligations.
• Homebuyer Education: Mandatory workshops equip buyers with essential knowledge for successful homeownership.

Cons:

• Affordability Period: Requirement to maintain the home as the primary residence for seven to fifteen years.
• Funding Limitations: Assistance is subject to fund availability and is provided on a first-come, first-served basis.

Program Type

This initiative provides both down payment assistance and covers closing costs through a forgivable deferred loan.

Program Availability

The program is ongoing, with applications accepted until allocated funds are depleted.

Post Category

Category: Florida First-Time Homebuyer Program

Subcategory: City of North Miami