Florida Hometown Heroes Program Calculator

Hometown Heroes Frequently Asked Questions

The Hometown Heroes Program is designed to aid eligible full-time employees, working with Florida-based employers, in obtaining more affordable mortgage options. This includes lower interest rates and assistance with down payment and closing costs for first mortgages.

Who is eligible for the Hometown Heroes Program?

Eligibility is generally extended to full-time workforce members employed by a Florida-based employer. Borrowers must have a minimum credit score of 640 and meet the specific loan terms for FHA, VA, RD, Fannie Mae, or Freddie Mac first mortgages.

What types of properties are eligible under this program?

The eligible properties include attached or detached 1-unit dwellings, 2-4 unit properties (where the borrower occupies one unit), approved condos, and manufactured housing (1994 or newer) in conjunction with FHA, USDA-RD, VA, and FNMA loans.

Can I refinance my home under the Hometown Heroes Program?

No, refinances are not eligible under this program. It only applies to new purchases of primary residences.

What is the maximum debt-to-income ratio allowed?

The program allows a maximum of 50% DTI with Automated Underwriting System Accept/Eligible findings, 43% DTI with manual underwrites, and 45% DTI for manufactured housing loans.

Are there any restrictions on how many times I can participate in the program?

Yes, borrowers can participate in the FL Housing’s Homebuyer Loan Program, which includes the Hometown Heroes Program, only once. This applies to both first and second mortgage programs.

Is down payment assistance available?

Yes, eligible borrowers can receive down payment assistance in the form of a zero-interest loan, which can be used towards down payment and closing costs but not to cover the cost difference between the sales price and appraised value or to pay off borrower debt.

What documentation is required to apply for the Hometown Heroes Program?

Applicants must provide a copy of the fully executed Florida Hometown Heroes Certification Form, a copy of the Verification of Employment (VOE) for a full-time position with a Florida-based employer, and a copy of the signed, final Uniform Residential Loan Application (form 1003).

Can I prepay my loan without penalties?

Yes, prepayments are permitted at any time without penalty.

Is homebuyer education required for this program?

Yes, all borrowers are required to take an approved homebuyer education course unless they are veterans or active-duty military personnel using a government first mortgage loan.

How does the down payment assistance get repaid?

The down payment assistance is a zero-interest loan that must be repaid upon the sale, transfer of deed, satisfaction of the first mortgage, refinancing of the first mortgage, or if the borrower no longer occupies the property as their primary residence.

Florida Hometown Heroes Eligibility Requirements

To qualify for the housing program, applicants must:

• Work with a participating loan officer through Florida Housing.

• Have a credit score of at least 640.

• Be first-time home buyers with an income not exceeding 150% of the median for their county.

• Be employed full-time (35+ hours per week) with a Florida-based employer (veterans are exempt from this requirement).

• Intend to use the home as their primary residence, moving in within 60 days of closing.

• Not have owned a home in the past three years (exceptions for veterans and active-duty military).

• Complete a Homebuyer Education course (exemptions for co-signers, veterans, and active-duty military with a government first mortgage).

• Meet income limits based on household size and county, which have been updated for 2024.

Assistance Amount of the Florida Hometown Heroes Program

The Florida Hometown Heroes Program eases the financial burden for homebuyers by offering zero-interest loans for down payments and closing costs.

Key features

• Provides 5% of the total loan amount, capped at $35,000 and not less than $10,000.

• Offered as a zero-interest, non-amortizing loan with a 30-year deferred payment plan.

• Repayment is triggered by specific events such as selling the home or no longer using it as the primary residence.

• Available for first-time homebuyers under FL Housing’s Homebuyer Loan Program.

• Funds can be used for down payment, closing costs, mortgage insurance premiums, or reducing the principal balance.

The program is designed to reduce initial financial barriers, allowing buyers to secure a property with less upfront cash. It integrates seamlessly into the mortgage plan without immediate repayment demands, making homeownership more accessible and financially manageable.

Hometown Heroes Program Loan Terms

The Hometown Heroes Program offers specialized loan terms for eligible full-time workforce members employed by a Florida-based employer.

Loan terms

• Lower-than-market interest rates for FHA, VA, RD, Fannie Mae, or Freddie Mac first mortgages.

• Reduced upfront fees with no origination or discount points.

• Down payment and closing cost assistance.

• Purchase-only loans; refinances and construction-to-permanent loans are not allowed.

• Minimum FICO credit score of 640; 660 for manufactured housing and manual underwriting.

• No blended FICO scores accepted using Desktop Underwriter (DU).

Debt-to-Income (DTI) ratio limits

• Maximum DTI of 50% for loans with Automated Underwriting System (AUS) Approve/Eligible findings.

• Maximum DTI of 43% for manual underwrites.

• Maximum DTI of 45% for manufactured housing.

Eligible property types

• Single-unit attached or detached dwellings, including townhomes.

• Multi-unit properties (2-4 units) if one unit is occupied as the primary residence.

• Condominiums (single-unit approval for FHA loans).

• Manufactured housing (1994 model or newer) for FHA, USDA-RD, VA, and FNMA loans.

Additional benefits

• No prepayment penalties, allowing early loan payments without extra charges.

Documentation Required When Applying for the Hometown Heroes Program

When applying for the Hometown Heroes Program, borrowers are required to provide specific documents to verify their eligibility. The necessary paperwork includes:

• A copy of the fully executed Florida Hometown Heroes Certification Form. This document confirms the borrower's enrollment and acknowledgment of the program's terms.

• A copy of the Verification of Employment (VOE) that demonstrates the borrower's full-time employment status. This must show that the borrower works 35 hours a week or more with an employer based in Florida.

• A copy of the signed, final Uniform Residential Loan Application, also known as Form 1003. This form outlines the borrower's financial information, employment history, and details of the mortgage for which they are applying.

These documents are vital for the application process and must be provided as accurately and completely as possible to avoid delays or issues in qualifying for the program.