Down Payment Assistance

Dated: October 3 2016

Views: 317

Tampa Bay CDC


DOWN PAYMENT ASSISTANCE

 

Are you tired of making your landlord rich?  Do you want to own a home of your own?
Do you need help with down payment and/or closing costs?

TAMPA BAY CDC IS THE KEY TO MAKING YOUR DREAM A REALITY!!!

Tampa Bay CDC is a HUD-approved non-profit organization whose mission is to promote homeownership opportunities for low to moderate income households in the Tampa Bay area. If you are looking to purchase a home in unincorporated Pinellas County or within the City limits of Clearwater and Largo, and you meet the income and eligibility criteria, we may have funds available to assist you with your down payment and/or closing costs.

TAMPA BAY CDC DOES NOT PROCESS ASSISTANCE LOANS FOR PASCO COUNTY, HILLSBOROUGH COUNTY, OR THE CITY OF ST. PETERSBURG.
If you are purchasing in these other areas, please call the following numbers for information on their programs:
  • City of St. Petersburg – (727) 893-7247

  • Pasco County – (727) 834-3445

  • Hillsborough County – (813) 274-6600

What Assistance is Available to me?

Levels of Assistance

Tampa Bay CDC’s loan amount (as shown below) will be reduced at closing if the borrower is receiving any cash back. CASH BACK AT CLOSING IS NOT PERMITTED by Tampa Bay CDC and it’s funding sources – under no circumstances!!

  1. Unincorporated Pinellas County:  $10,000

  2. City of Largo (Tax Code “LA”):  Less than 50% MFI = up to $35,000 /50.01% – 80% MFI = up to $25,000

  3. City of Clearwater (Tax Code “CW”):  $14,000

Interest Rates

Interest Free.

Repayment Terms

  1. Unincorporated Pinellas: No payments for the first 5 years. After 5 years, the loan must be repaid over a period of 10 years. Maximum payment is $83.33

  2. City of Largo: Assistance loans are due when the property is sold or rented, or when the mortgage is paid, refinanced, or assumed.

  3. City of Clearwater: No payments for the first 5 years. After 5 years, the loan must be repaid over a period of 15 years. Maximum payment is $77.78

What is the Maximum Household Income?

INCOME LIMITS FOR 2016
JUST ANNOUNCED – 2016 LIMITS!

Maximum Income is 80% AMI:

1 Person- $33,150

2 Persons- $37,900

3 Persons- $42,650

4 Persons- $47,350

5 Persons- $51,150

6 Persons- $54,950

7 Persons- $58,750

8 Persons- $62,550

How Does Tampa Bay CDC Calculate Income?

What is included in income?

It means the total current annual gross income (before taxes and withholdings) of the purchaser and ALL adult members (who are 17 or older) residing or intending to permanently reside in the household. This includes spouse, fiancé, parent, relative, adult child, roommate, friend, etc.

Non Occupant Co-Signer Requirements: If a non-occupant co-signer will be used, their income is NOT included in the household income for eligibility for downpayment assistance. The co-signer must complete a form which certifies that they will not reside in the property and that they will not contribute income to the household.  PLEASE NOTE: Per state guidelines, NON-OCCUPANT CO-SIGNERS CANNOT TAKE TITLE TO THE PROPERTY OR BE LISTED ON THE TITLE OR WARRANTY DEED.

THE CALCULATION OF ANNUAL HOUSEHOLD INCOME BY TAMPA BAY CDC WILL DIFFER FROM THE CALCULATION OF INCOME BY THE FIRST MORTGAGE LENDER.

Tampa Bay CDC DOES NOT look at prior earnings. INCOME IS BASED ON CURRENT EARNING LEVELS WHICH ARE ANNUALIZED AND PROJECTED FROWARD FOR THE NEXT TWELVE MONTHS.

INCOME MUST BE VERIFIED IN WRITING by an employment verification form that Tampa Bay CDC will send to all employers. Annual income will be calculated using current earnings unless the employment verification form shows that a raise will be received within the next 12 months. In these cases, annual income will be calculated at the level expected after the raise is received.

TAMPA BAY CDC IS REQUIRED TO CONSIDER ALL SOURCES OF INCOME FROM ALL ADULTS WHO WILL RESIDE IN THE PROPERTY (REGARDLESS OF WHETHER THE LENDER IS USING THE INCOME TO QUALIFY YOU FOR THE FIRST MORTGAGE).

This includes, but is not limited to the following:

  • The gross amount of wages from full and/or part-time employment.

  • Overtime pay, bonuses, commissions, tips, shift differential, etc.

  • The full amount received from Social Security, pensions, disability benefits, VA benefits, annuities, retirement income, trust income, death benefits, etc. (Please note that non taxable income is not “grossed up.”)

  • Unemployment compensation, worker’s compensation or severance pay.

  • Net income from the operation of a business.

  • Child support or alimony payments. The only time child support or alimony payments are not included in income is if the borrower can provide proof that it has not been received (i.e., court printout) AND proof that they have taken action with the State’s Child Support Enforcement Department to collect the support.

  • Any other type of income (i.e., dividend income, asset income, rental income, etc.)

  • Assets and anticipated interest and dividend income from assets (if the buyer has more than $5,000 in assets, we must take .06% of that figure and add that to annual income.

Borrower Requirements

  1. Unincorporated Pinellas County: The borrower is not required to be a first time homebuyer. It is preferred that the borrower not own property at the time of application. If the buyer does own a property, Tampa Bay CDC must verify that this property will be sold or rented (with a copy of either the lease or closing statement), and that the new property being purchased will be the buyer’s primary residence. If the buyer will be leasing the property, the full amount of monthly rent must be included in annual household income. If the borrower has previously received down payment assistance from Pinellas County, they are ineligible to receive assistance again.

  2. City of Largo: The Borrower must be a first time homebuyer who has not owned a principal residence within the past 3 years.

  3. City of Clearwater: The borrower is not required to be a first time homebuyer to qualify for assistance, but they cannot own a property at the time of application. In addition, if the borrower has received assistance from the City within the past 5 years, they are ineligible to receive assistance.

Borrower Contribution

  1. Unincorporated Pinellas: Borrower must contribute 2% of purchase price. 1% of the contribution can come from gift funds and the other 1% must come from the borrower’s own funds. If no gift funds are being used, the borrower must contribute the full 2% from their own funds.

  2. City of Largo: The City has no minimum contribution requirement.  They will accept the same contribution amount as the Lender, and it can come from any source that is acceptable to the Lender (i.e. from Assistance, from a gift, etc.) If the Lender is not requiring the Borrower to contribute any funds, that will be acceptable to the City of Largo.

  3. City of Clearwater: The borrower must contribute 2% of the sales price towards the loan. This must be from their own funds and cannot be from a gift or costs paid by the seller.

Property Requirements

Property Location

The property being purchased can be located ANYWHERE IN PINELLAS COUNTY EXCEPT within the city limits of ST. PETERSBURG, which are properties having a tax code of “SP”.

To verify the jurisdiction of a property, call the Property Appraiser’s Office at (727) 464-3207 or visit their website at: http://www.pcpao.org/.

Maximum Sales Price

Please note: Appraised value cannot be less than sales price.

City of Clearwater (Tax code “CW”):              $158,000 – Existing Home         $203,000 – Newly-Built Home
City of Largo (Tax Code “LA”):                        $138,000 – Existing Home         $190,000 – Newly-Built Home
Unincorporated Pinellas County:                    $158,000 – Existing Home         $195,000 – Newly-Built Home

 

Eligible Property Types

Single family residences, condominiums, or townhouses.

Ineligible Property Types

2-4 family homes, rental properties, co-ops, manufactured and mobile homes, and properties built prior to 1978 that have peeling or chipping paint are ineligible under this program. If the property being purchased is occupied by a tenant who will be displaced so the loan can close, Tampa Bay CDC is unable to provide assistance. If the property is located within the city limits of Largo, it cannot be located in a flood zone.

Inspection Requirements

Existing Properties

All properties must meet Section 8 Housing Quality Standards (HQS). An inspection is required to verify that the property meets applicable safety/code requirements.

Tampa Bay CDC will order a Section 8 Safety/Code Inspection (from a City/County approved inspector). There is no charge to you for this inspection.  If any of the Section 8 Standards are not met, these must be completed/corrected and re-inspected prior to closing.

PLEASE NOTE: THIS CITY/COUNTY CODE INSPECTION DOES NOT REPLACE THE NEED FOR A HOME INSPECTION! You are highly encouraged to hire your own inspector to perform a detailed home inspection. If you choose to do so, this will be at your expense.

For homes built prior to 1978, the City/County will order a lead paint inspection. There is no charge to you for this inspection.

Newly Built Properties

Certificates of Occupancy must be provided in lieu of the Inspection Report.

What Type of First Mortgage must I Obtain?

ALL BORROWERS MUST OBTAIN A 30-YEAR FIXED RATE MORTGAGE. Tampa Bay CDC is prohibited from assisting borrowers who are obtaining first mortgages which are:

  • Adjustable Rate Mortgages

  • Based on “stated” or “undocumented”

  • Loans with prepayment penalties

  • Financed by the Owner/Seller

  • Above-market rates or have high fees (i.e., B/C Loans).

  • No Escrows – no taxes and insurance are being collected

  • Non-arms length. It is unacceptable for the same individual to be the Realtor, Seller and/or Lender. In this case, assistance funds will not be provided.

  • Negative amortization loans

  • Interest Only

How Can I Get Down Payment Assistance in Pinellas County?

  • Download the form here .  You can fill out the form using Adobe Reader.  You can then save the completed form and upload it to us by clicking here.  Before transmitting the online application, please review Tampa Bay CDC’s Privacy Policy. If you are uncomfortable about transmitting this information via a secure server, please feel free to send your application via the US Postal Service to the address listed below.

  • Call the Tampa Bay CDC office at (727) 442-7075. You can request an application package to be mailed to you. When you have completed the application in full:

  • (a) mail it with the income certification fee to:                                                                                                          Tampa Bay CDC 2139 N.E. Coachman Road, Suite 1 Clearwater, FL 33765  

  • (b) You can  fax the application only to (727) 451-3323 and submit the income certification fee.

  • Please note that faxed applications will not be processed until the income certification fee is received.

  • (c) upload the application through our website

“Dream of Homeownership” Workshop

You must attend an approved Homebuying Workshop prior to closing. A copy of the certificate must be provided to Tampa Bay CDC.

PLEASE NOTE: ONLINE COURSES OR TELEPHONIC COURSES ARE NOT ACCEPTABLE. If the certificate is over 12 months old, the borrower must attend another workshop.

THE CERTIFICATE RECEIVED AT THE WORKSHOP IS NOT AN APPROVAL FOR DOWNPAYMENT ASSISTANCE OR FINANCING. All borrowers must still complete an application and meet the applicable County, City, or State eligibility criteria.

For a schedule of Tampa Bay CDC’s 2016 “Dream of Homeownership” Workshops, click here.

CITY OF LARGO- BUDGETING CLASS REQUIRED: For Borrowers who are purchasing a property within the city limits of Largo, a Budgeting Workshop is also required. The Buyer must register for the Budgeting Program prior to closing by calling (727) 461-0618 and this Bugeting Program must be completed as soon as possible, buy no later than six months after closing. If not completed within that timeframe, the Assistance Loan will be immediately due and payable.

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