Hey there! Navigating the home-buying process can feel overwhelming, especially for first-time buyers. But don’t worry—I’m here to share some great news that might make your journey a bit smoother. Let’s talk about the City of Boca Raton’s First-Time Homebuyers Program, designed to help folks like you achieve the dream of homeownership.

Program Overview

The City of Boca Raton offers a Purchase Assistance Program through the State Housing Initiatives Partnership (SHIP). This program provides interest-free, deferred payment loans to assist eligible first-time homebuyers with down payment, principal reduction, closing costs, prepaid expenses, and even minor rehabilitation after purchase. The loan is secured by a zero-interest, deferred payment second mortgage on the property and is forgiven, provided you occupy the property as your primary residence for 20 years.

For more details, check out the SHIP Application Packet.

Funding Source

This initiative is funded by the State of Florida under the SHIP Program, with the City of Boca Raton projected to receive $762,169 for the fiscal year 2024-25. Read more here.

Eligibility Criteria

• First-Time Homebuyer: You haven’t owned a home in the past three years, are a single parent with minor children displaced within the last 12 months, a displaced victim of domestic abuse, or displaced due to governmental action (excluding eviction from public housing).
• Income Limits: Your annual household income must fall within specific limits, which vary based on household size. As of April 1, 2024, a four-person household’s income should not exceed $85,650 for low-income eligibility.
• Asset Limits: You must have at least $2,500 in assets for the three months prior to application and not exceed $25,000 in total assets (excluding qualified retirement accounts).

Benefits

Depending on your income category, you could receive up to $150,000 in assistance, with $5,000 reserved for closing costs, prepaids, or necessary repairs. This substantial support can significantly reduce the financial barriers to purchasing your first home.

Potential Drawbacks

• Occupancy Requirement: You must use the property as your primary residence for 20 years to have the loan fully forgiven. Selling or renting the property before this period may require repayment of the loan.
• Funding Availability: Funds are limited and subject to availability. Applications are processed on a first-qualified, first-served basis, and you may be placed on a waiting list if funds are exhausted.

Application Process

1. Homebuyer Education: Complete a HUD-approved eight-hour homebuyer education course to obtain a certificate.
2. First Mortgage Pre-Approval: Secure a pre-approval for a fixed-rate conventional, bond, or FHA/governmental loan from an insured mortgage lender.
3. Application Submission: Gather all required documents, including identification, income verification, and asset statements. Submit your application by mail to:
   Community Improvement Division
   201 W. Palmetto Park Road, Room 220
   Boca Raton, FL 33432

Remember, as of February 7, 2025, the application packet has been revised, so ensure you’re using the most current forms. Find the updated application here.

Additional Information

• Geographic Availability: This program is available exclusively within the municipal city limits of Boca Raton, Florida.
• Original Sources:
  • SHIP Purchase Assistance Programs
  • SHIP Application Packet 2024
  • SHIP 2024-25 Notice of Program Availability

Pros and Cons

Pros

• Substantial financial assistance covering down payment, closing costs, and minor rehabilitation.
• Zero-interest, deferred payment loan with potential for forgiveness after 20 years.
• Priority consideration for special needs households.

Cons

• Strict occupancy requirement of 20 years for loan forgiveness.
• Limited funding may lead to waiting lists.
• Specific eligibility criteria, including income and asset limits, must be met.

Program Type

This is a down payment assistance program that also covers closing costs and minor rehabilitation expenses.

Program Availability

• Became Available: The program is ongoing, with the latest application packet revised as of February 7, 2025.
• Current Status: Active.