Hey there! Navigating the world of homebuying can be a bit overwhelming, especially when you’re trying to figure out how to cover that hefty down payment. But don’t worry—Florida has a fantastic program called the Florida Assist (FL Assist) that might be just what you need to make your homeownership dreams come true.

What is the Florida Assist (FL Assist)?

The Florida Assist program offers up to $10,000 in down payment and closing cost assistance to eligible first-time homebuyers. This assistance comes as a 0% interest, non-amortizing, deferred second mortgage. This means you won’t have to make monthly payments on this loan, and it doesn’t accrue interest over time.

Who Funds This Program?

The program is funded by the Florida Housing Finance Corporation (FHFC), a state agency dedicated to helping Floridians obtain safe and affordable housing.

Who is Eligible?

To qualify for the FL Assist program, you need to meet the following criteria:

• First-Time Homebuyer Status: You must not have owned and occupied your primary residence within the last three years.
• Credit Score: A minimum credit score of 640 is required.
• Income and Purchase Price Limits: Your income and the purchase price of the home must be below the limits set for the county in which you’re buying.
• Homebuyer Education: Completion of an approved homebuyer education course is mandatory.
• Approved Lender: You must work with a lender participating in the FHFC programs.

Benefits of the Program

• No Monthly Payments: Since the loan is deferred and non-amortizing, you won’t have additional monthly payments, making your homeownership journey more affordable.
• Substantial Assistance: Receiving up to $10,000 can significantly reduce the financial burden of your down payment and closing costs.

Potential Drawbacks

• Repayment Upon Certain Events: The loan becomes due in full if you sell, transfer, or refinance your first mortgage, or if you cease to occupy the property as your primary residence.

Application Process

1. Check Eligibility: Ensure you meet all the eligibility criteria mentioned above.
2. Complete Homebuyer Education: Enroll in and complete an approved homebuyer education course.
3. Contact an Approved Lender: Work with a participating lender to apply for a first mortgage through the FHFC.
4. Apply for FL Assist: Your lender will guide you through the application process for the FL Assist program.
5. Finalize the Purchase: Once approved, proceed with the home purchase, utilizing the assistance for your down payment and closing costs.

Type of Assistance

The FL Assist program provides down payment and closing cost assistance in the form of a deferred second mortgage.

Availability

The program is available statewide in Florida, so no matter where you’re looking to buy within the state, you can apply for this assistance.

Embarking on the journey to homeownership is exciting, and programs like the Florida Assist are designed to make that journey a bit smoother. If you think this program aligns with your needs, reaching out to an approved lender is a great next step. Happy house hunting!

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Pros and Cons of the Florida Assist (FL Assist) Program

Pros:

• No Monthly Payments: The 0% interest, deferred nature of the loan means you won’t have additional monthly financial obligations.
• Substantial Financial Assistance: Up to $10,000 is available to help cover down payment and closing costs, reducing the initial financial burden.
• Statewide Availability: The program is accessible to eligible first-time homebuyers throughout Florida.

Cons:

• Repayment Triggers: The loan must be repaid in full if you sell, transfer, or refinance your first mortgage, or if you no longer occupy the property as your primary residence.
• Not Forgivable: Unlike some assistance programs, the FL Assist loan is not forgivable, meaning repayment is eventually required.

Application Process Details

1. Verify Eligibility: Review the program’s eligibility criteria to ensure you qualify.
2. Homebuyer Education: Complete a homebuyer education course approved by the FHFC.
3. Select an Approved Lender: Use the FHFC’s resources to find a participating lender in your area.
4. Mortgage Application: Apply for a first mortgage through the selected lender, indicating your interest in the FL Assist program.
5. Submit Required Documentation: Provide all necessary documents, such as proof of income, credit history, and completion of homebuyer education.
6. Loan Approval and Closing: Upon approval, proceed to closing, where the FL Assist funds will be applied toward your down payment and closing costs.

Grant or Down Payment Assistance?

The FL Assist program offers down payment assistance in the form of a deferred second mortgage; it is not a grant.

Program Availability

• Became Available: The FL Assist program has been assisting first-time homebuyers for several years; however, specific inception dates are not readily available.
• Current Status: As of the latest information, the program is active and continues to provide assistance to eligible applicants.

Geographic Availability

Category: Florida First-Time Homebuyer Program

For more information, visit the Florida Housing Finance Corporation website.