First Time Home Buyer Program Forms and Program Guide >>
Funds Release Notice (6/03/09)

Frequently Asked Questions

What Is The First Time Home Buyer Program?
Hillsborough County’s First Time Home Buyer Program provides Downpayment Assistance, and Closing Cost. These funds are provided by Hillsborough County through the State Housing Initiatives Partnership (SHIP) Program and through the HOME Investment Partnerships (HOME) Program.

This assistance is provided in the form of a 0% interest, deferred payment loan (DPL). This simply means that there is no interest accrued and no payments are made during the life of the loan. The DPL is a second mortgage with a 30 year term. If ownership is maintained for the full term of the loan, then the second mortgage with Hillsborough County is forgiven and repayment is not necessary.

Who Is Eligible For This Program?
To qualify you must be a first time home buyer in unincorporated Hillsborough County, Temple Terrace or Plant City; and your total household income must be 120% and below the area median income (see table below). In addition you must meet all of the requirements described below.

1. You cannot have owned a home within the last three years.
   
2. Applicant must be able to qualify for primary financing by a lender.
   
3. The annual percentage rate of the primary financing the applicant must be eligible for FHA, VA and conventional loan from a private lending institution, with a rate no higher than one ( 1 ) point above the "Fannie Mae 60-Day Rate".
   
4. You must attend an 8-hour mandatory FTHB Education class. The list of contact phone numbers to schedule a class is listed below.
   
5. A minimum down payment is required, which may include prepaid amounts such as appraisal, and application fees.
   
6. Applicant's debt ratios shall be at or below 33%, but not less than 25% (PITI ÷ monthly income) and no higher than 45% ( [PITI + monthly debt] ÷ monthly income ).
   
7. Applicant's gross income must be at or below the following annual income limits - (80% median income) according to household size as determined by HUD, or (120% median income) according to household size as determined by the State of Florida - State Housing Initiatives Partnership ( SHIP ) Program.
   

All Household income must be included in calculation. Income from children under the age of 18 is excluded.

1. Homes must be single-family, including town homes and condominiums, within unincorporated Hillsborough County ( Plant City & Temple Terrace ). Modular homes that have a Department of Community Affairs ( DCA ) seal are eligible. This seal is a special designation and not the same as Housing & Urban Development ( HUD ) approved.
2. Home must be applicant's primary residence or homestead.
3. Maximum purchase price of a home must be at or below $185,580.
4. A property appraisal must be done. The purchase price cannot exceed appraised value.
5. Existing homes will require a Housing Quality Standards ( HQS ) inspection utilizing approved HQS inspection format; this inspection will be done by Hillsborough County AHD staff. Any home built prior to 1978 will require a testing for Lead-Based Paint ( LBP ) when HOME funds are being utilized.

Federal (HUD) 80% of Area Median Income / State (SHIP) 120% of Area Median Income:

A deferred payment loan is second mortgage with a zero percent interest rate, which requires no monthly payments as long as the property remains your primary residence. This simply means there is no interest accrued and no payments are made during the life of the loan. The DPL is a second mortgage with a 30-year or 40 year term depending on the length of the 1st mortgage. This ownership is maintained for the full term of the loan, then the second mortgage with Hillsborough County is forgiven and repayment is not necessary. The DPL is secured by a mortgage and a promissory note, which defers repayments until a default occurs. A default will cause the loan to become due and payable. Default occurs in any of the following situations:

• You sell the property or transfer the title
• You no longer live at the property
• You refinance the property for cash-out
• You refinance with cash-out or equity line

The minimum amount of down payment to be provided from buyer’s own funds is $500.00 for Very Low Income applicants (50% and below AMI), $1,000.00 for Low Income applicants (80% and below AMI), and 2% of the sales price or a maximum of $2,000.00 for Moderate Income applicants (120% and below AMI). This requirement can be satisfied by an earnest money deposit, any prepaids, and/or cash at time of closing.

Approved Homebuyer Education Classes
For agencies that provide Homebuyer Education classes approved by Hillsborough County, please access:

• www.HUD.gov
  
• Click on "Buy a home" tab
  
• Click on "Find a housing counselor near you"
  
• Locate "Florida" on map and click for local listings

* Please note, homebuyer education certificates from online and self-study courses will not be accepted.

For additional information and questions, please contact (813) 274-6680

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