Hey there! Navigating the world of homeownership can be daunting, especially if you’re a first-time buyer. But don’t worry—I’m here to introduce you to a fantastic opportunity that might make your journey smoother: the City of Pompano Beach First-Time Homebuyer Program.

Program Details

• Program Name: City of Pompano Beach First-Time Homebuyer Program
• Source of Funding: This program is funded through a combination of state and federal sources, including the State Housing Initiatives Partnership Program (SHIP), the Home Investment Partnership Program (HOME), the Neighborhood Stabilization Program (NSP), and the Affordable Housing Trust Fund Local (AHT).

Eligibility Criteria

• First-Time Homebuyer Status: Applicants must not have had an ownership interest in a property at any time during the last three years.
• Income Limits: Your annual income must fall within specific limits, which are updated annually. As of FY2024, the limits are:
  • 1-person household: Very Low (50%) – $36,950; Low (80%) – $59,150
  • 2-person household: Very Low (50%) – $42,200; Low (80%) – $67,550
  • 3-person household: Very Low (50%) – $47,500; Low (80%) – $76,050
  • 4-person household: Very Low (50%) – $52,800; Low (80%) – $84,450
  • (And so on, up to an 8-person household)
• Financial Contribution: Homebuyers must provide at least 3% of the purchase price towards the down payment and closing costs.
• Mortgage Commitment: Applicants need a loan commitment for a first mortgage from an approved lender.
• Homebuyer Education: Completion of an 8- or 12-hour Homebuyer Education Class from a HUD-approved counseling agency is required.

Benefits

• Financial Assistance: The program offers up to $50,000 in assistance for down payment, closing costs, sales price write-downs, and/or gap financing.
• Loan Terms: This assistance comes as a 20-year deferred loan with 0% interest. Impressively, the loan is forgiven at a rate of 20% per year during the last five years of the term.

Potential Drawbacks

• Occupancy Requirement: The property must be your primary residence. If you sell, transfer, rent out the property, or lose homestead exemption status before the loan is forgiven, the remaining balance becomes due.
• Property Restrictions: Eligible properties include one-unit, single-family residences and townhomes.