Hey there! Navigating the world of homeownership can be daunting, especially when you’re trying to figure out how to afford that initial down payment and closing costs. But don’t worry—there’s a fantastic program in Florida designed to help first-time homebuyers like you: the Florida Homeownership Loan Program (FL HLP).

Program Overview

• Program Name: Florida Homeownership Loan Program (FL HLP)
• Source of Funding: This program is funded by the Florida Housing Finance Corporation, a state agency dedicated to helping Floridians achieve affordable housing.

Eligibility 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 within the limits set for your county.
• Homebuyer Education: Completion of an approved homebuyer education course is mandatory.
• Approved Lender: You must work with a lender participating in the Florida Housing program.

Benefits

• Loan Amount: Offers up to $10,000 in assistance.
• Interest Rate: The loan carries a low 3% interest rate.
• Term: This is a fully amortizing second mortgage with a 15-year term.

Potential Drawbacks

• Monthly Payments: Unlike some assistance programs, the FL HLP requires monthly payments, which will be factored into your debt-to-income ratio during underwriting.
• Repayment Upon Certain Events: The remaining unpaid principal balance becomes due if you sell, transfer, refinance, or cease to occupy the property as your primary residence.

Where is the Program Available?

This program is available statewide across Florida.

Pros and Cons

Pros:

• Low-Interest Rate: The 3% interest rate is favorable compared to many other loan options.
• Structured Repayment: The 15-year term provides a clear timeline for repayment.

Cons:

• Monthly Financial Obligation: The required monthly payments add to your ongoing expenses.
• Immediate Repayment Triggers: Certain actions, like selling or refinancing, trigger full repayment of the remaining balance.

Application Process

1. Complete Homebuyer Education: Enroll in and complete an approved homebuyer education course.
2. Connect with an Approved Lender: Work with a participating lender to assess your eligibility and begin the application.
3. Loan Application: Apply for a first mortgage through the Florida Housing program; the FL HLP is used in conjunction with this primary loan.
4. Approval and Closing: Upon approval, proceed to closing, where the FL HLP funds will be applied toward your down payment and closing costs.

Type of Assistance

This program provides down payment and closing cost assistance in the form of a second mortgage.

Program Availability

The FL HLP has been available for several years and continues to assist first-time homebuyers in Florida.

More Information

For more detailed information, visit the Florida Housing Finance Corporation’s official page on the Homebuyer Program:
Florida Housing Homebuyer Program.