What Is the Florida Hometown Hero Credit Program?
Understand the Florida Hometown Hero initiative, a forgivable second mortgage designed to make homeownership more accessible for eligible frontline professionals.
The Florida Hometown Hero Housing Program is a state initiative designed to make homeownership more affordable for a wide range of community workers. It directly addresses the challenge of upfront homebuying costs by providing financial aid for down payments and closing expenses. This assistance helps essential professionals purchase a home in the communities they serve.
Eligibility Criteria
To qualify for the program, an applicant must work full-time for a Florida-based employer and be a first-time homebuyer. A first-time homebuyer is defined as an individual who has not owned and occupied a primary residence within the three years prior to the purchase. An important exception exists for veterans, who may be exempt from this requirement.
Applicants must also meet specific financial thresholds. Both household income and the purchase price of the home are subject to limits that are determined by the county in which the property is located. Because these limits vary significantly across the state, it is necessary for individuals to use the official program resources online to find the precise income and purchase price figures applicable to their desired county.
Financial Assistance Explained
The financial assistance provided is not a grant but is structured as a second mortgage loan. The loan amount is calculated as 5% of the total first mortgage loan, with assistance ranging from $10,000 up to a maximum of $35,000. For instance, on a $300,000 first mortgage, a borrower could receive $15,000 in assistance.
The terms of this second mortgage are highly favorable to the borrower. It is a 0% interest, non-amortizing, deferred-payment loan. This means the borrower is not required to make any monthly payments on the assistance loan. The debt remains in a deferred status as long as the homeowner complies with the program’s requirements.
Repayment of the loan is triggered by specific events, such as selling the home, refinancing the first mortgage, or if the owner no longer occupies the property as their primary residence. The loan is not forgivable and becomes due in full when one of these events occurs. This ensures the funds are eventually returned to the program, allowing them to be used again for future homebuyers.
How to Apply for the Program
The application process does not begin with a state agency but with a qualified lender. The first step for any prospective applicant is to connect with a Florida Housing-approved loan officer. The official Florida Housing website features a lender locator tool to help applicants find an approved professional in their area.
A mandatory part of the application process is the completion of a homebuyer education course. This course must be approved by the U.S. Department of Housing and Urban Development (HUD). Active-duty military members are not exempt from this requirement, though some veterans may be.
Applicants will need to gather several key documents for their lender to process the application. This includes recent pay stubs, federal tax returns from the previous two years, and a letter or other form of employment verification. Once all necessary information is submitted, the approved lender manages the process of reserving the Hometown Hero funds on the buyer’s behalf.