Hey there! Navigating the world of homeownership can be daunting, especially when you’re trying to figure out how to afford that all-important down payment. But if you’re eyeing a place in St. Petersburg, Florida, there’s some good news that might just make your journey to owning a home a bit smoother.

What is the Program?

The City of St. Petersburg offers a Housing Down Payment Assistance Program designed to help first-time homebuyers like you. This program provides financial assistance to eligible individuals and families aiming to purchase a new or existing single-family home, condominium, townhome, or cooperative apartment within the city’s municipal boundaries.

Funding Source

This initiative is funded by the City of St. Petersburg, utilizing resources such as the State Housing Initiatives Partnership (SHIP) and the HOME Investment Partnership Program. These funds are allocated to support affordable housing and assist residents in achieving homeownership.

Eligibility Criteria

To qualify for this program, applicants must meet the following criteria:

• First-Time Homebuyer Status: You should not have owned a principal residence in the last three years.
• Income Limits: Your total annual household income should not exceed 140% of the Area Median Income (AMI). Priority is given to those earning 80% AMI or less. For detailed income limits, refer to the city’s guidelines.
• Financial Contribution: Be prepared to contribute at least 1% of the sales price from your own funds.
• Homebuyer Education: Complete an 8-hour Homebuyer Education Class provided by a HUD-approved housing counseling agency and obtain a certificate of completion.
• Property Requirements: The home must be located within St. Petersburg’s municipal boundaries, and its purchase price cannot exceed $510,939. Additionally, the property must pass an inspection by a licensed home inspector, with all deficiencies addressed before closing.

Benefits

The program offers a 0% interest, secondary mortgage loan to assist with down payment and closing costs:

• The loan amount is 20% of the property’s sales price, plus up to $5,000 for closing costs, with a maximum of $75,000.
• For homebuyers at or below 80% AMI, the loan is fully forgiven after 10 years of continuous occupancy.
• For those between 81% and 140% AMI, repayment terms vary based on the property’s location and specific income bracket.

Potential Drawbacks

• Repayment Obligations: If you fall within the 81% to 140% AMI bracket, you may be required to repay a portion of the loan, depending on specific terms and property location.
• Occupancy Requirement: The loan forgiveness is contingent upon maintaining the home as your primary residence for at least 10 years. Selling or renting out the property before this period may trigger repayment clauses.

Application Process

The application process typically involves the following steps:

1. Verify your eligibility by reviewing the income limits and homebuyer requirements.
2. Complete an approved homebuyer education course.
3. Find an eligible property within St. Petersburg’s municipal boundaries.
4. Work with an approved lender to secure your primary mortgage.
5. Apply for the down payment assistance through the City of St. Petersburg’s housing department.
6. Once approved, proceed with the home purchase and close on the property.

Final Thoughts

If you’re dreaming of homeownership in St. Petersburg but need a little help getting there, this program could be just what you need. With substantial down payment assistance and the possibility of loan forgiveness, it’s a great opportunity for first-time buyers. Be sure to check the latest requirements and get started on your path to owning a home!