The hometown heroes program was launched by the state of Florida in June of  2022. 

As of January 2023 this program has assisted over 3,500 Florida frontline workers purchase a home in the community they serve, awarding more than $50 million in down payment and closing cost assistance.

 

How it works: 

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Frontline workers employed in qualifying occupations can receive up to 5% of their mortgage loan amount (to a maximum of $25,000) in Down Payment Assistance (DPA), resulting in less out of cost expense when making a home purchase.

 

This money can be utilized for down payment and closing costs to include prepaids, upfront funding fees or other mortgage fees and expenses.   

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Down payment assistance is provided in the form of a 0% interest, non-amortizing, 30 year loan with zero monthly payments. A non-amortizing loan is a type of loan that is typically repaid in one lump sum as opposed to regular monthly payments.  DPA Loan re-payment is deferred until the home is sold, the deed is transferred, the home is refinanced, or when the borrower decides to no longer occupies the property as their primary residence.

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Program Details:

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• 30-year fixed rate first mortgage loan (FHA, VA or Conventional)

• Home Purchase transaction only

• Primary Residence in the State of Florida Only

• Home must be occupied within 60 days

• Minimum credit Score of 640

• Maximum DTI: 50% for Conventional, FHA and VA; 45% for USDA

• Must be a first time buyer or have an exemption status

  • Veterans, active duty and their spouses are exempt from the first-time buyer requirement​

• Income Limit: Must be below 150% of the area median income

  • Limit varies from $118,950 to $146,250

  • $118,950 (Volusia,  Flagler, St Johns)

  • $124,350 (Orange, Osceola)  

  • $146,250 (Miami, Dade)

• Loan Amount varies by county and loan type

  • Conventional: $726,200 all of Florida (except for Monroe county: $874,000)​

  • FHA: $472,030 (Flagler, Orange, Osceola, Volusia); $526,700 (St Johns) 

• No purchase price limits 

• No Minimum Borrower contribution for 1 unit property 

• Cash Back is NOT allowed​​​​

  • Potential cash back can be used to reduce the 1st Mortgage principal ($1000 max)

  • Cannot be used for an appraisal gap

  • Cannot be used to pay off borrower debt, but personal funds may be used.

• Homebuyer education is required for the hero borrower but not spouse.

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