The Florida legislature has appropriated $363 million for the state’s Green Lights Hometown Heroes Housing program. This will fund programs that help Florida’s low and moderate-income citizens purchase a home. The Florida Housing and Finance Corporation administers these programs, including down payment assistance and SHIP-Homeownership and Rental. The Florida Housing and Finance Corporation also offers a list of affordable housing options, as well as information on disaster relief programs, special needs housing, and lenders and property managers.
Teachers are a definite incentive for the program
For many Florida residents, a home is an expensive proposition. Even a median-priced home can cost over $62,000, which puts them out of reach for most of the population. Teachers, police officers, and other frontline employees earn far less than this amount, so they face the extra hurdle of finding a home. For this reason, this housing program is an especially welcome development for educators and other frontline workers.
The program provides up to $25,000 to cover down payments and closing costs for qualifying applicants with a credit score of 640. However, teachers are not automatically eligible because the requirements are very strict. Loan officers are getting between ten and fifteen calls a day, and it is a competitive process, especially with the limited supply of homes in a given area. Further, the demand is much higher than the supply.
Florida Realtors are actively advocating for affordable housing for our heroes. The state legislature recently allocated $100 million for the program in the fiscal year 2022-23. A total of two hundred and fifty homes are planned to be made available to heroes. The first phase of the program is targeted toward educators, healthcare professionals, childcare employees, and active military personnel. The program offers down payment assistance, reduced mortgage rates, and other helpful benefits.
It will provide zero-interest loans to be used toward down payment and closing costs
The Green Lights Hometown Heroes Housing program will help eligible frontline workers obtain low-interest loans for their down payment and closing costs. Funds from this program do not have to be repaid until the home is sold, refinanced, or paid off. This program is modeled after the Salute Our Soldiers military loan program, which has helped hundreds of veterans purchase homes.
Florida’s Hometown Heroes Housing program will provide down payment and closing cost assistance to front-line workers and military members. The program is open to veterans, active-duty military, and front-line workers in more than 50 professions. The program is designed to make homeownership affordable for these heroes in our communities and will help low and moderate-income homebuyers purchase their first homes.
It is a definite incentive for homebuyers
The state has established a $100 million program to give first-time homebuyers who qualify for low-interest loans a chance to own their own homes. The program will provide zero-interest loans for up to 5% of the loan amount and up to $25K in down payment assistance. The program is administered by the Florida Housing Finance Corporation. Eligible homebuyers can receive zero-interest loans for a down payment or closing costs. They can also receive a zero-interest second mortgage with a 30-year deferred term. This second mortgage will be due in full upon sale or transfer of the deed to the home. The Florida Hometown Heroes loan is non-forgivable and cannot be refinanced.
The program complements other efforts by the Florida government to increase homeownership opportunities for low-income Floridians. It would be similar to the Salute Our Soldiers Military Loan Program, which has helped hundreds of active-duty military and veterans purchase a home. The Hometown Heroes Housing Program would provide zero-interest loans to help homebuyers with their down payment and closing costs. In addition, qualifying homebuyers would receive down payment assistance up to 5% of the first mortgage loan amount. The zero-interest loans would be repaid in full if the buyer sells the home, refinances, or sells the property.
“During the pandemic and beyond, our hometown heroes – the nurses, EMTs, firefighters, law enforcement officers, and educators – were the ones who kept us safe, cared for our loved ones, and taught our children,” says 2022 Florida Realtors President Christina Pappas. “Unfortunately, with skyrocketing home prices, they often can’t afford to live in the communities where they work. The Hometown Heroes Housing Program is a great way to help address this issue.”
The program will be available to more than 50 occupations and is subject to certain income and purchase price limits that vary by county. DeSantis said mortgage loan officers throughout the state would begin accepting applications for the program beginning June 1, 2022.
“There are 1,000 lenders involved in the program to start providing assistance to essential workers, such as police officers, firefighters, doctors, nurses, and teachers, among other professions,” says Florida Realtors Vice President of Public Policy Andy Gonzalez.
