Hey there! Navigating the journey to homeownership can feel overwhelming, but the City of Orlando offers a fantastic resource to make it more attainable: the Down Payment Assistance (DPA) Program. Let’s break down how this program can help you step into your first home with confidence.

Program Overview

The City of Orlando’s DPA Program is designed to assist first-time homebuyers by providing financial support for down payments and closing costs. The amount of assistance you can receive depends on your household income and specific needs.

To qualify, you’ll need to complete a homebuyer education workshop approved by the U.S. Department of Housing and Urban Development (HUD) and secure a fixed-rate first mortgage from a lender registered with the city.

Eligibility Criteria

To benefit from this program, you must meet the following requirements:

• First-Time Homebuyer: You haven’t owned a home in the past three years. Exceptions include displaced homemakers, single parents, displaced homeowners from or future residents in the Parramore Heritage Overlay District, City of Orlando employees, teachers/school administrators, and public safety personnel.
• Residency: You’ve lived continuously for the past 12 months in one of the following counties: Orange, Osceola, Lake, Polk, Seminole, Volusia, or Brevard.
• Income Eligibility: Your total household income must fall within the program’s specified limits.
• Homebuyer Education: Completion of a pre-purchase workshop conducted by a HUD-approved housing counseling agency is mandatory.
• Mortgage Pre-Approval: You must qualify for a fixed-rate first mortgage from a city-registered lender.
• Personal Investment: A minimum contribution of $1,000 towards the down payment and closing costs is required ($500 for low or very low-income applicants).

Application Process

Applying for the City of Orlando Down Payment Assistance Program involves several steps:

1. Complete a HUD-Approved Homebuyer Education Course: This is required before applying.
2. Obtain Mortgage Pre-Approval: Work with a lender that is registered with the city.
3. Submit an Application: You will need to apply through the City of Orlando’s Housing and Community Development Department.
4. Provide Required Documentation: This includes income verification, residency proof, and mortgage pre-approval.
5. Wait for Approval: The city will review your application and determine the assistance amount.
6. Close on Your Home: Once approved, you can finalize your home purchase using the program’s financial assistance.

Benefits of the Program

• Provides crucial financial assistance for down payments and closing costs.
• Helps first-time homebuyers in Orlando and surrounding counties achieve homeownership.
• Encourages financial education through required homebuyer counseling.
• Offers additional support for public service professionals and displaced individuals.

Potential Drawbacks

• Applicants must meet specific income and residency requirements.
• Homebuyer education is mandatory, which may add time to the process.
• Funding availability may be limited, meaning approvals are not guaranteed.
• Applicants must secure a mortgage from a city-approved lender.

Final Thoughts

If you’re looking to buy a home in Orlando but need a little extra financial help, this program could be a great opportunity. By meeting the requirements and completing the necessary steps, you can make homeownership a reality with less financial strain. Be sure to check with the City of Orlando’s Housing and Community Development Department for the most up-to-date details and application deadlines.