Hey there! Navigating the home-buying process can be daunting, especially if you’re a first-time buyer. But don’t worry—I’m here to share some great news about a program that might just make your journey to homeownership in Tallahassee a whole lot smoother.

What is the City of Tallahassee First-Time Homebuyer Program?

The City of Tallahassee, in partnership with the Tallahassee Lenders’ Consortium (TLC), offers a fantastic program designed to assist first-time homebuyers like you in purchasing affordable homes within the city limits. This initiative provides down payment and closing cost assistance, making the dream of owning a home more attainable.

Source of Funding

This program is funded through various sources, including the State Housing Initiatives Partnership (SHIP) funds and the City’s Affordable Housing Trust Fund. These funds are allocated to support low- to moderate-income residents in achieving homeownership.

Eligibility Criteria

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

• First-Time Homebuyer Status: You must not have owned a home in the last three years. Exceptions are made for single parents who have only owned a home with a former spouse while married, and individuals who have only owned a principal residence not permanently affixed to a permanent foundation.
• Income Limits: Your total household income should be at or below 80% of the area median income (AMI), adjusted for family size, as defined by HUD.
• Homebuyer Education: Completion of a homebuyer education program with a HUD-approved counseling agency, such as the Tallahassee Urban League, is required before closing.
• Primary Residence: The property must be located within the Tallahassee city limits and serve as your primary residence.
• Contribution: You should be able to contribute at least $500 towards the down payment or closing costs.

Benefits

Participating in this program offers several advantages:

• Financial Assistance: Receive up to 20% of the purchase price of the home in down payment and closing cost assistance.
• Affordable Financing: The assistance is provided as a deferred payment, no-interest loan secured by a recorded subordinate mortgage and note. This means you won’t have to make monthly payments on the assistance amount, and it becomes due only upon certain events like selling the home or refinancing.
• Homebuyer Support: Access to homebuyer education, credit and finance counseling, and assistance in selecting a mortgage lender through the Tallahassee Lenders’ Consortium.

Potential Drawbacks

• Repayment Conditions: The deferred loan must be repaid if you sell, transfer, lease, rent, abandon, or cease to occupy the property as your principal residence during the loan term.
• Property Restrictions: Mobile homes are not eligible for this program.

Application Process

Here’s how you can get started:

1. Contact TLC: Reach out to the Tallahassee Lenders’ Consortium at (850) 222-6609 or visit their website to learn more about the program and initiate the application process.
2. Homebuyer Education: Enroll in and complete a homebuyer education program offered by a HUD-approved counseling agency.
3. Pre-Approval: Obtain a pre-approval letter from a participating lender.
4. Find a Home: Work with a real estate agent to find a home within the city limits that meets the program’s requirements.
5. Submit Your Application: Work with TLC to submit the necessary documents and apply for assistance.
6. Close on Your Home: Once approved, complete the closing process and move into your new home!

More Information

For more details, visit the Tallahassee Lenders’ Consortium website.