Hey there! Navigating the home-buying process can be daunting, especially when it comes to securing that initial down payment. But don’t worry—there are programs designed to help first-time homebuyers like you. Let’s explore the Seminole County Purchase Assistance Program, which offers down payment assistance to eligible individuals purchasing homes in areas like Sanford, Florida.

Program Name:

Seminole County Purchase Assistance Program

Source of Funding:

This program is funded by Seminole County, utilizing federal grants from the U.S. Department of Housing and Urban Development (HUD).

Eligibility Criteria:

• First-Time Homebuyer: Applicants must not have owned or had an interest in a home during the three-year period immediately prior to applying.
• Income Limits: Household income must be at or below 80% or 120% of the area median income (AMI), depending on the funding source. For example, as of the latest data, for a household of four, the very low-income limit is $36,350, low-income is $58,150, and moderate-income is $87,240. (Seminole County)
• Mortgage Pre-Approval: Applicants must be pre-approved for a first mortgage through a private lender approved by Seminole County.
• Property Location: The home must be located within Seminole County and be either newly constructed or existing, owner-occupied, or vacant.

Benefits:

• Down Payment Assistance: Provides assistance for down payment, principal reduction, and closing costs. The maximum assistance amounts are:
  • Very Low-Income: Up to $50,000
  • Low-Income: Up to $30,000
  • Moderate-Income: Up to $10,000
• Deferred Payment Loan: The assistance is provided as an interest-free, deferred payment loan, meaning no monthly payments are required. Repayment is due upon the sale, transfer, or refinancing of the property.

Potential Drawbacks:

• Affordability Period: The assistance comes with an affordability period during which the home must remain the primary residence of the borrower. The length of this period depends on the amount of assistance received:
  • Up to $15,000: 6 years
  • $15,001 – $30,000: 12 years
  • $30,001 – $50,000: 20 years

  Selling or renting out the property before the end of this period may require repayment of the assistance.

• Property Requirements: The property must pass an inspection by county staff for lead-based paint hazards and building/health and safety code deficiencies.

Application Process:

1. Homebuyer Education: Complete a required HUD-approved 8-hour homebuyer class. Seminole County has partnered with HELP CDC, a HUD-certified housing counselor, to assist households in getting purchase-ready and providing educational resources. For more information, contact HELP CDC at 407-628-4832 or visit their website: HELP CDC.
2. Mortgage Pre-Approval: Choose a local lender and receive pre-qualification for a first mortgage.
3. Property Selection: Sign a purchase contract and open escrow on a home located within Seminole County.
4. Application Submission: Provide a complete Purchase Assistance Program application packet to the Seminole County Community Development Division for review and approval, including all required documents and forms.
5. Property Inspection: The property must pass an inspection by county staff for lead-based paint hazards and building/health and safety code deficiencies.
6. Funding Reservation: If eligible and the home passes inspection, Seminole County reserves funds and notifies the homebuyer and realtor.
7. Closing: Coordinate with all parties involved to schedule the closing date.

Pros:

• Significant Financial Assistance: Offers substantial aid for down payment and closing costs, reducing the financial burden on first-time homebuyers.
• Deferred, Interest-Free Loan: No monthly payments are required, and the loan is interest-free, making homeownership more affordable.

Cons:

• Affordability Period Restrictions: Requires the home to remain the primary residence for a set period, limiting flexibility in selling or renting the property.
• Property Compliance: The property must meet specific health and safety standards, which may limit available housing options.

Availability:

This program is available to eligible first-time homebuyers purchasing homes within Seminole County, Florida, including the City of Sanford.

More Information:

For more details and to access the application, visit the Seminole County Community Development Programs page: Seminole County Community Development.

I hope this information helps you on your journey to homeownership! If you have any more questions or need further assistance, feel free to ask.