Hey there! Navigating the world of homeownership can be daunting, especially when it comes to securing the necessary funds for a down payment. If you’re eyeing a home in Palm Coast, Florida, there’s a program that might just be the helping hand you need.

Funding Source

This initiative is funded through the Community Development Block Grant (CDBG) program, a federal program administered by the U.S. Department of Housing and Urban Development (HUD).

Eligibility Criteria

• First-Time Homebuyer Status: You must not have owned a home in the past three years. Exceptions are made for displaced homemakers and other specific situations.
• Location: The property must be within the city limits of Palm Coast.
• Income Limits: Your household income should not exceed 80% of the area median income (AMI) for Flagler County. For detailed income limits, refer to the city’s housing website.
• Homebuyer Education: Completion of an 8-hour HUD-certified homebuyer education class is mandatory.
• Financial Contribution: A minimum personal contribution of 1% of the sales price is required.

Benefits

• Financial Assistance: Eligible applicants can receive up to 20% of the purchase price, with maximum assistance amounts based on income levels:
  • Extremely Low Income (30% AMI): Up to $35,000
  • Very Low Income (50% AMI): Up to $25,000
  • Low Income (80% AMI): Up to $10,000
• These funds can be applied toward down payments and qualified closing costs.
• Loan Terms: The assistance is a 0% interest, forgivable, deferred payment loan. The term is 10 years for assistance amounts up to $25,000 and 15 years for $26,000 or more.

Potential Drawbacks

• Primary Residence Requirement: The property must be your primary residence; investment properties are not eligible.