Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re doing it for the first time. But don’t worry—I’m here to help! Let’s talk about a fantastic opportunity that could make your journey to homeownership in Palm Bay, Florida, a bit smoother: the City of Palm Bay’s First-Time Homebuyers Program.

Program Overview

The City of Palm Bay offers a First-Time Homebuyers Program designed to assist low to moderate-income families in purchasing a home within the city limits. This program provides financial assistance for down payments and closing costs, making homeownership more attainable for those who might find these initial expenses challenging.

Funding Source

This initiative is funded through the Community Development Block Grant (CDBG) program, a federal program aimed at supporting community development and affordable housing. The City of Palm Bay allocates these funds to help eligible residents achieve their dream of owning a home.

Eligibility Criteria

To qualify for this program, you need to meet the following requirements:

• First-Time Homebuyer Status: You must not have owned a home within the past three years.
• Income Limits: Your household income should not exceed 80% of the Area Median Income (AMI) for Brevard County. For example, as of 2022, the maximum income for a four-person household is $64,950.
• Homebuyer Education: Attendance at a local homebuyer training and counseling class is required.
• Creditworthiness: You must meet the credit evaluation criteria set by your first mortgage lender.
• Personal Contribution: A minimum contribution of $1,000 toward the purchase is expected from you.

Benefits

The program offers a deferred payment loan of up to $17,400, which can be used for down payment and closing costs. This loan carries a 0% interest rate and is forgivable after ten years, provided you continue to own and occupy the home as your primary residence throughout this period.

Potential Drawbacks

• Occupancy Requirement: You must use the home as your primary residence for at least ten years to have the loan forgiven. Selling or renting the home before that period may require repayment.
• Limited Funding: Funds are limited and available on a first-come, first-served basis.
• Geographic Restriction: This program is only available for homes purchased within Palm Bay city limits.

Application Process

Applying for the City of Palm Bay First-Time Homebuyers Program involves several steps:

1. Complete a HUD-certified homebuyer education course.
2. Secure pre-approval from a mortgage lender.
3. Find an eligible property within Palm Bay.
4. Submit an application to the City of Palm Bay’s Housing and Neighborhood Development office.
5. Receive approval and proceed with closing on your home.

Program Type

This program provides down payment assistance in the form of a deferred payment loan.

Availability

Location: Palm Bay, Florida

How to Apply

For more details and to apply, visit the official City of Palm Bay website: City of Palm Bay First-Time Homebuyers Program