Hey there! I know that buying your first home can feel like a daunting journey, especially when it comes to gathering enough funds for a down payment and closing costs. But don’t worry—there’s a fantastic program right here in Ocala designed to give first-time homebuyers like you a helping hand.

Funding Source

This program is funded through the State Housing Initiatives Partnership (SHIP), a Florida state program aimed at providing affordable housing solutions for low to moderate-income families. More details here.

Eligibility Criteria

• First-Time Homebuyer Status: You must not have owned a home in the past three years.
• Income Limits: Your household income should fall within the limits set by the U.S. Department of Housing and Urban Development (HUD) for Marion County.
• Property Location: The home you’re looking to purchase must be within the Ocala city limits.
• Homebuyer Education: Completion of an approved homebuyer education course is required to ensure you’re well-prepared for homeownership.

Benefits

• Financial Assistance: Eligible applicants can receive up to $10,000 in assistance, provided as a deferred, zero-interest loan. Source.
• Loan Forgiveness: If you continue to live in the home as your primary residence for a specified period, the loan may be forgiven.

Potential Drawbacks

• Primary Residence Requirement: The assistance is contingent on the home remaining your primary residence. Renting or selling the property before the loan term ends could require repayment.
• Funding Availability: The program operates on a first-come, first-served basis and is subject to funding availability, so it’s essential to apply promptly.

Application Process

1. Pre-Approval: Begin by obtaining a mortgage pre-approval from a lender.
2. Homebuyer Education: Enroll in and complete an approved homebuyer education course.
3. Application Submission: Contact the City of Ocala Community Programs Division to submit your application.
4. Property Selection and Purchase: Once approved, proceed with selecting a qualifying property and finalize the purchase.

For more detailed information or to start your application, reach out to the City of Ocala Community Programs Division at (352) 629-8322 or visit their official website.

Program Availability

Geographic Scope: This program is available exclusively within the city limits of Ocala, Florida.

Pros and Cons

Pros:

• Financial Relief: Provides substantial assistance with down payment and closing costs, reducing the initial financial burden.
• Loan Forgiveness: Potential for the loan to be forgiven after maintaining the home as your primary residence for the required period.

Cons:

• Residency Obligation: Must maintain the home as your primary residence for the duration of the loan term to avoid repayment.
• Limited Funding: Assistance is subject to availability and is distributed on a first-come, first-served basis.

Application Steps

1. Mortgage Pre-Approval: Secure a pre-approval letter from a mortgage lender.
2. Educational Course: Complete an approved homebuyer education program.
3. Program Application: Submit your application through the City of Ocala’s Community Programs Division.
4. Home Purchase: After approval, select an eligible property within Ocala and proceed with the purchase.

Program Type

This initiative offers down payment and closing cost assistance in the form of a deferred, zero-interest loan, which may be forgiven upon meeting specific residency requirements.

Program Timeline

Availability: The program is currently active; however, assistance is dependent on the availability of funds.

Post Category

• Category: Florida First Time Homebuyer Program
• Subcategory: Marion County