What is the Hometown Heroes Program?
It is a housing assistance initiative that launched last year by our state government. The goal is to make homeownership more affordable for eligible borrowers who work in the state of FL. Eligible borrowers can receive up to 5% of their loan amount in down payment and closing cost assistance. That can be up to $35,000.
How does a Borrower Qualify for this Program?
To qualify, the borrower needs:
- To be a First-time Home Buyer. This means no ownership interest in a primary residence for the past 3 years.
- To Work a Minimum of 35 hours a week or more at a Florida-based Business. This means the business has a brick and mortar location in Florida.
- A Minimum Credit Score of 640.
- To Be Under the Income Limitations. The income limit varies by county. They range from $118,000 to $140,000 a year. In Duval County and surrounding areas, it is about $132,000.
Can a Self-Employed Borrower Apply?
Absolutely! A Self-Employed borrower can provide a 1099 validating that their contracted employer is a Florida-based company. The 1099 needs to reflect the payer’s company name and that the address is located in Florida. If the borrower files a Schedule C, the proprietor’s business address should show the business is located in Florida.
Can a Veteran Use the Program?
Yes, veterans can use this program. The first time home buyer qualification does not apply to Veterans or Active-Duty Military.
What are the Benefits of this Program?
This loan program often offers lower than market rates. That, in turn, means a lower monthly payment. The big thing that we’ve seen is that many borrowers are bringing very little (if any) of their personal funds to the closing table. Sometimes the down payment is the only thing standing in the way of becoming a homeowner. This program makes homeownership more attainable and affordable for those who qualify.
Are there any Disadvantages to the Program?
If the borrower decides to refinance or sell the home, the down payment assistance is due back at that time.
What kind of Fees are Involved?
The beauty of the program is there are not many extra fees. You are not paying doc stamps or intangibles, like on other loans. Some lenders will charge their origination and processing fee. We aren’t doing that at Prosperity Home Mortgage. We are not charging the origination fee which can be a $1000 in savings.
To see if you qualify, you can contact Jordan Boyack here.
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