Am I Eligible for Hometown Heroes?
Are you dreaming of owning your own home in Florida? We’re here to help make that dream a reality. The Florida Hometown Heroes Housing Program, offered through the Florida Housing Finance Corporation, is designed to make homeownership more affordable for eligible borrowers just like you.
What is it?
Florida Hometown Heroes allows borrowers to receive up to 5% of the loan amount (capped at $35,000) in down payment and closing cost assistance. It can be paired with additional assistance programs to maximize amount of received assistance. There is a $10,000 grant minimum for loans of $200,000 or less.
- Down payment and closing cost assistance is available in the form of a 0% interest, non-amortizing, 30-year repayable second mortgage. This second mortgage becomes due and payable in full upon sale of the property, refinancing of the first mortgage, transfer of deed or if the homeowner no longer occupies the property as their primary residence. The Florida Hometown Heroes loan is not forgivable.
- The down payment and closing cost assistance can be used to satisfy the following:
- Borrower’s down payment
- Any down payment exceeding the minimum borrower requirement
- Reasonable and customary closing costs
NOTE: The down payment and closing cost assistance cannot be used to cover commission for real estate agents, the cost difference between the sales price and the appraised value or to pay off borrower debt.
- HFA Preferred Heroes (Fannie Mae) – Offers eligible borrowers a 30-year, fixed-rate mortgage. This mortgage also offers borrowers a reduced Private Mortgage Insurance premium for borrowers below 80% AMI. Standard PMI applies to borrowers above 80% AMI.
- HFA Advantage Heroes (Freddie Mac) – Offers eligible borrowers a 30-year, fixed-rate mortgage. This mortgage also offers borrowers a reduced Private Mortgage Insurance premium for borrowers below 80% AMI. Standard PMI applies to borrowers above 80% AMI.
- FHA, USDA and VA
- AMI does not impact MI rate
- Florida ONLY
- 30-year fixed Conventional, FHA, USDA and VA loan types
- Primary purchases ONLY
- 1-unit single family residences and PUDs
- 2-4 units
- Borrower must occupy 1 unit as their primary and property must be at least 5 years old
- Follow agency requirements
- FHA loans are ineligible for single unit approvals
- Manufactured homes
- Not eligible on VA or Freddie Mac loans
- Mixed-use properties
- No more than 15% of a property can be used for business purposes and must follow agency requirements
- Min FICO = 640
- Min FICO = 660 (manufactured homes)
- Max DTI = 50% with Approve/Eligible findings
- Max DTI = 45% (manufactured homes)
- Borrower(s) cannot own any other properties – excluding veterans or active military members
- Conforming loan limits ONLY – no High-Balance
- Loan must be originated in the broker channel – no correspondent
- Florida Hometown Heroes Second Mortgagee Clause required to satisfy Homeowner’s Insurance requirements
- Cannot waive the UW fee
- No non-occupying co-borrowers or co-signors
- No escrow waivers
- No co-ops, single-wide manufactured homes or land trusts
- No temporary rate buydowns
- No standalone or piggyback HELOCs