12 Ways To Get Money For Closing Costs or Down Payment Assistance

Dated: October 13 2020

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12 Ways To Get Money For Closing Costs or Down Payment Assistance

Down Payment Assistance in Florida

Did you know there are at least 12 ways to get money for closing costs and/or down payment assistance for your home purchase? Check out the compilation of available programs listed here. There are going to income requirements for every program, as well as maximum home price. With the state programs, they'll be available in all 67 Florida counties. For county or local, you'll need to purchase a home within their boundaries. The programs listed here are only the government sponsored ones! There are opportunities with private lenders for grants as well!

Most programs will require you to be a first time homebuyer, but check with the program administrators as there are special allowances for different buyers. If you are a military/veteran, first responder, teachers, or government employee there are options. Make sure you ask if you can qualify or you could cost yourself thousands in assitance!

This information is accurate as of this writing, but terms and conditions are subject to change. Funds will depend on availability.

If I can help in any way, don't hesitate to reach out! 407-476-1559

Let's get started!

State Programs

Florida Housing Finance Corporation
The Florida Housing Finance Corporation (Florida Housing) was created by the state Legislature 40 years ago to assist in providing a range of affordable housing opportunities for residents that help make Florida communities great places in which to live, work and do business. Our vision is to be recognized as an outstanding provider of innovative, measurable, data-driven and fiscally sustainable solutions that respond to the affordable housing challenges of our state.

These programs can be used in any county in the state of Florida.

The Florida Assist (FL Assist)

Borrowers purchasing in the county selected may also be eligible to receive down payment assistance (DPA) through the FL Assist Second Mortgage Program. The FL Assist offers the following:

➡️Up to $7,500.

➡️0%, deferred second mortgage.

The FL Assist is not forgivable. Repayment is deferred, except in the event of the sale, transfer, satisfaction of the first mortgage, refinancing of the property or until such a time the mortgagor ceases to occupy the property at which time, the Florida Assist will become payable in full.

3%, 4% and 5% HFA Preferred and HFA Advantage PLUS Second Mortgage

Borrowers utilizing these down payment and closing cost programs receive 3%, 4% or 5% of the total loan amount in a forgivable second mortgage. This second mortgage is forgiven at 20% a year over its 5-year term.

The Florida Homeownership Loan Program (FL HLP) Second Mortgage

Borrowers purchasing in the county selected may also be eligible to receive down payment assistance (DPA) through the FL HLP Second Mortgage Program. The FL HLP offers the following: 

➡️Up to $10,000.

➡️3% fully-amortizing, second mortgage.

➡️15-year term.

The FL HLP Second Mortgage carries a monthly payment. The remaining unpaid principal balance (UPB) is deferred, except in the event of the sale, transfer of deed, satisfaction of the first mortgage, refinancing of the property or until such a time the mortgagor(s) ceases to occupy the property as his/her primary residence at which time, the FL HLP Second Mortgage will become payable, in full. 

Since the FL HLP Second Mortgage carries a monthly payment, this payment may need to be considered in a borrower’s debt-to-income (DTI) ratio when credit underwriting. 

Salute Our Soldiers Military Loan Program

The Salute our Soldiers Military Loan Program offers our military service personnel and veterans 30-year, fixed-rate first mortgage loans at a lower rate and with several down payment assistance options. This program is available in all 67 counties throughout the State of Florida to borrowers who are purchasing a primary residence, meet income and purchase price limits, can qualify for a first mortgage loan, and successfully complete a homebuyer education course.

Mortgage Credit Certificate Program

The Mortgage Credit Certificate (MCC) Program offers eligible first-time homebuyers a non-refundable Federal income tax credit which can be utilized with a lenders first mortgage. The MCC reduces an eligible borrower’s Federal income taxes and, in effect, creating additional income for the borrower to use in making mortgage payments or other household expenses. 

An MCC is not credited at the closing of the loan, but on the homeowner’s federal taxes in the future. The credit can be used for each future tax year in which the mortgage is held that the homeowner has a tax liability. Florida Housing’s Program offers a tax credit amount of up to 50% with a maximum credit of $2000 per year, based on loan amount.

❓ Contact Florida Housing for more information.


County & Local Programs

The following programs are only eligible for use in the county or city the home will be purchased in. Please consult with the program administrators for details, or you can access the program info on my website under Down Payment Assistance.

Brevard County

Maximimum Assistance Available

➡️Maximum of $22,400 based on household income as a percentage of Area Median Income (AMI).

Eligibility

➡️Can be a new home or an existing home. The assistance may not be used to purchase a manufactured home.

➡️First time homebuyers only (not having ownership interest in the past 3 years).

➡️Must have ability to secure first mortgage financing:

➡️Conventional, FHA, VA are all acceptable; 30 year fixed rate. MORTGAGE LOAN MUST BE AT CURRENT MARKET INTEREST RATES. If buyer cannot get a mortgage loan at a current interest rate, C.H.I. will first assist the buyer in correcting credit issues.

➡️Liquid assets (savings, checking, CD's, treasury bonds, money market, savings bonds, etc.) can not exceed $8,000.

➡️Must attend a 5 hour Homebuyer Education workshop.

➡️Maximum sales price and income limits apply. (check with the county)

Loan Conditions and Repayment

➡️Must be a county approved lender

➡️Applicants must make a MINIMUM GOOD FAITH CONTRIBUTION, based upon their income bracket:

➡️Out of Pocket expenses paid before closing are considered as part of the applicant's contribution (i.e. appraisal fees, credit reports, deposits, homeowner's insurance premium, etc);

➡️At closing, the minimum contribution must be satisfied on the settlement statement.

➡️The lender may require more contribution.

The assistance provided to each homebuyer will be in the form of a second mortgage. The second mortgage will be recorded in the Public Records of Brevard County. It is a Deferred Payment Loan (DPL) at zero percent (0%) interest or repayable for moderate income clients. In the event of default the loan must be repaid in full to Brevard County.

❓ Contact the Brevard County Community Housing Initiative for more information.




Lake County

Maximimum Assistance Available

➡️Maximum of $40,000 based on household income as a percentage of Area Median Income (AMI).

Maximum Sales Price

➡️$180,000

Eligibility

➡️Funds can be used for down payments, closing costs for new homes, or for existing homes that have been or will be repaired within twelve months of transfer of title.

➡️Maximum sales price and income limits apply. (check with the county)

➡️Up to $5,000 of the assistance can be used for repairs to existing homes. 

Loan Conditions and Repayment

➡️Must be a county approved lender

The assistance is in the form of a deferred second mortgage which is forgiven after 15 years. No payments are due if the borrower lives in the home for the term of the mortgage; however a lien held by the County is placed on the home during the mortgage period. If, before the 15 years have elapsed, the home is sold, ceases to be the principal residence of the borrower, the borrower refinances with cash out or uses the home as collateral for a home equity line of credit, the loan must be repaid in its entirety within 30 days of closing. The loan does not need to be repaid if the refinancing was to obtain a lower fixed interest rate, or to create additional living space due to an increase in family size.

❓ Contact the Lake County Home Purchase Program for more information.


Orange County

Maximimum Assistance Available

➡️Maximum of $35,000 based on household income as a percentage of Area Median Income (AMI).

Maximum Sales Price

➡️$230,000

Eligibility

➡️First time homebuyers only (not having ownership interest in the past 3 years). Exceptions are made for displaced homemakers.

➡️Single Family homes, condominiums, townhouses, modular homes located in Orange County, but outside the city limits of Orlando.

➡️Mobile Homes are not eligible.

➡️Residency in Orlando Metropolitan Statistical Area (Orange, Osceola, Seminole or Lake County) during the last 12 months, and must have legal right to permanently reside in the United States.

➡️Have a middle credit score of 620 or above

➡️Contribute the greater of $1,000 or 1.75% of the sales price towards the home purchase.

➡️Maximum sales price and income limits apply. (check with the county)

➡️Attend an approved Homebuyer's Education Seminar

Loan Conditions and Repayment

➡️Must be a county approved lender

➡️Funding may be used for qualified closing costs and down payment associated with purchasing a home.

➡️Orange County’s Down Payment Assistance must be repaid if the property is not occupied by the borrower during the lien period, sold, rented or refinanced.

➡️10 year deferred payment loan.

❓ Contact the Orange County Housing and Community Development for more information.


City of Orlando

Maximimum Assistance Available

➡️Maximum of $35,000 based on household income as a percentage of Area Median Income (AMI).
➡️Maximum of $40,000 based on household income as a percentage of Area Median Income (AMI) for Future Parramore Residents

Maximum Sales Price

➡️Check with Orlando Housing & Community Development

Eligibility

➡️First time homebuyers (not having ownership interest in the past 3 years). Exceptions are made for displaced homemakers, single parents, former/future Parramore resident, City of Orlando employee, Teacher/school administrator, public safety personnel.

➡️Complete a Home Buyer’s Education Seminar by a HUD-approved housing counseling agency.

➡️Able to obtain a loan commitment for a first mortgage with a fixed rate from a City of Orlando certified lender.

➡️Provide a minimum of $1,000 of household money (no gift or loan) toward down payment/closing costs.

➡️Maximum sales price and income limits apply. (check with the city)

➡️Located within the city limits of Orlando.

➡️New or existing single-family homes, townhouses and condominiums are eligible. Mobile homes and trailers are NOT eligible.

➡️Property may be owner-occupied, vacant or occupied by applicant; tenant-occupied property is not eligible.

➡️Homes must meet property standards for health and safety prior to release of funds.

Loan Conditions and Repayment

➡️Must be a city approved lender

➡️If you remain in the property and do not rent, sell or convey ownership of the property during the lien period, the loan will be forgiven.

➡️A recorded mortgage and note will be placed on the property for ten years.

➡️During that time, the home must remain the principal residence of the owner and the City’s staff will monitor the ownership to verify up-to-date payment of homeowners insurance, mortgage and property taxes.

➡️A satisfaction of mortgage will be recorded once the lien period is completed and the homeowner has complied with all requirements.

❓ Contact the City of Orlando Housing & Community Development for more information.


Osceola County

Maximimum Assistance Available

➡️Maximum of $30,000 based on household income as a percentage of Area Median Income (AMI).

Maximum Sales Price

➡️$200,000

Eligibility

➡️First time homebuyers only (not having ownership interest in the past 3 years).

➡️Maximum sales price and income limits apply. (check with the county)

➡️Preference will be given to current Osceola County residents.

➡️Property must be located in Osceola County (excludes properties in the City of Kissimmee tax districts 200 & 202, 205).

➡️Property may not possess an in-ground pool.

➡️Homeowners who have lost their home through bankruptcy or foreclosure within the previous three (3) years will not be eligible.

➡️Must attend pre-purchase orientation counseling and complete an HUD-approved home buyers’ education program. 

➡️Applicants will also be required to attend post-purchase counseling within six months of the purchase of their home.

➡️The property must be a single family residence, a townhome or a condominium.

➡️The property must have a useful life consistent with the terms of the first

mortgage, but not less than fifteen (15) years.

Loan Conditions and Repayment

➡️Must be a county approved lender

➡️The applicant shall be responsible for securing a permanent first mortgage with at least a fifteen (15) year term. 

➡️Must contribute at least $1,000 of personal funds towards downpayment/closing costs.

➡️The assistance is given in the form of a 10 years Deferred Payment Loan. If the house is refinanced, sold, transferred or no longer occupied by the owner, the unused portion of the assistance must be returned to the program.

❓ Contact the Osceola County Purchasing Assistance Program for more information.


Polk County

Maximimum Assistance Available

➡️Maximum of $30,000 based on household income as a percentage of Area Median Income (AMI).

Maximum Sales Price

➡️$294,600 Non-Target Area / $360,067 Target Area

Eligibility

➡️First time homebuyers (not having ownership interest in the past 3 years) or veterans.

➡️Maximum sales price and income limits apply. (check with the county)

➡️Complete a Home Buyer’s Education Seminar by a HUD-approved housing counseling agency.

➡️Minimum FICO credit score for all loans is 660.

Loan Conditions and Repayment

➡️Must be a county approved lender

➡️The home must serve as the primary residence for the duration of the loan. 

This down payment and closing cost assistance program is a deferred, non-amortizing. 0% interest, second mortgage that is repayable when borrowers sell or refinance the property, satisfy the first mortgage, rent or no longer occupy the property as a primary residence. 

Other conditions may apply. Check with the county for more information on income, home price, and amount of assistance you may qualify for. 

❓ Contact the Housing Finance Authority for more information. *Pinella County manages the program for Polk.


Volusia County

Maximimum Assistance Available

➡️Maximum of $30,000 based on household income as a percentage of Area Median Income (AMI).
➡️Maximum closing cost assistance of $6,000 based on household income as a percentage of Area Median Income (AMI).

Maximum Sales Price

➡️$225,000

Eligibility

➡️The home must be located in Volusia County, except within the city limits of Daytona Beach and Deltona. NOTE: Limited funds are available for purchases within the city limits of Port Orange and Oak Hill.

➡️The applicant(s) cannot have previously received housing assistance from Volusia County 

➡️First time homebuyers only (not having ownership interest in the past 3 years).

➡️Maximum sales price and income limits apply. (check with the county).

➡️The applicant must be able to secure a first mortgage.

Loan Conditions and Repayment

➡️Must be a county approved lender

➡️The County’s funds are provided as a 0% interest, deferred second, non-assumable, mortgage with a 15-year term including a shared appreciation feature.

➡️The County’s loan cannot exceed the first mortgage or be more than 50% of the purchase price.

➡️There can be no cash to the borrower. 

❓ Contact the Volusia County Homebuyer Assistance Program for more information.


If you have questions about any of these programs or if I can help in any way...

Call Me Today!

Sean Rooney, Realtor

407-476-1559

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Sean Rooney

Focused on Results for You - Serving Orlando and Central Florida Let me handle the details to lessen the stress of the home buying or selling process. It's my goal to get you the best price, the best....

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