Are you a first-time homebuyer in Florida? Do you serve your community or country as a military personnel, teacher, healthcare worker, or other essential worker?

If so, the Florida Hometown Heroes TBA Loan Program might be the perfect solution to help you achieve your dream of homeownership. This comprehensive guide will explain everything you need to know about the program, from eligibility requirements and benefits to the application process and frequently asked questions.

And when you're ready to apply, My Forever Home is here to help you every step of the way!

What is the Florida Hometown Heroes TBA Loan Program?

The Florida Hometown Heroes TBA (To Be Announced) Loan Program is an initiative by the Florida Housing Finance Corporation (FHFC) aimed at making homeownership more accessible for eligible first-time homebuyers who serve their communities. The program offers competitive mortgage rates, down payment assistance, and other special benefits to those who qualify, ensuring that Florida's heroes have the opportunity to own homes in the communities they serve.

Key Features and Benefits Competitive Mortgage Rates

• One of the primary benefits of the Hometown Heroes TBA Loan Program is the competitive mortgage rates offered to eligible borrowers. These rates are often lower than standard market rates, making monthly mortgage payments more affordable.

Down Payment and Closing Cost Assistance:

• The program provides significant assistance with down payments and closing costs. Borrowers can receive up to 5% of the total loan amount, capped at $35,000, with a minimum of $10,000 in down payment and closing cost assistance. This can make a substantial difference for first-time homebuyers who may struggle to save enough for these upfront costs.

No 1% Origination Fee

Unlike many other mortgage programs, the Hometown Heroes TBA Loan Program does not charge the standard 1% origination fee. This can save borrowers thousands of dollars in upfront costs, making homeownership more attainable.

Deferred Second Mortgage

The down payment and closing cost assistance is provided as a 0%, non-amortizing, 30-year repayable second mortgage. Repayment of this loan is deferred until the sale, transfer, or refinancing of the property, or if the borrower ceases to occupy the home as their primary residence.

Special Benefits for Community and Military Heroes

The program is specifically designed to benefit those who serve their communities and country. Eligible occupations include military personnel (active duty and veterans), teachers, healthcare workers, law enforcement officers, firefighters, and other essential workers.

Eligibility Requirements

To qualify for the Hometown Heroes TBA Loan Program, borrowers must meet specific eligibility criteria:

• Borrowers must be employed full-time by a Florida-based employer.

• Veterans are exempt from this requirement if they provide a valid DD214 form.

• Only one occupying borrower needs to meet the employment requirement (excluding non-occupying co-signors).

First-Time Homebuyer Requirement

• Occupying borrowers must be first-time homebuyers, meaning they have not had an ownership interest in a primary residence within the last three years.

• Veterans and borrowers purchasing in federally designated targeted areas are exempt from this requirement.

Income Limits

• Borrowers must meet the program's income limits, which vary by county. The income limits are adjusted for household size and are updated annually to reflect current economic conditions.

Loan Limits

• The total loan amount must not exceed the program's loan limits, which also vary by county. These limits ensure that the program targets affordable housing.

Credit and Debt-to-Income Requirements

• Minimum credit score: 640 for all loan types.

• Maximum debt-to-income (DTI) ratio: 50% with automated underwriting system (AUS) approval, 43% with manual underwriting.

Homebuyer Education

• At least one borrower must complete a program-approved pre-purchase homebuyer education course. This requirement ensures that borrowers are well-prepared for the responsibilities of homeownership.

Eligible Loan Types

The Hometown Heroes TBA Loan Program offers both government and conventional financing options:

Government Loan Programs

• FHA Loans: Federal Housing Administration (FHA) loans offer lower down payment requirements and are a popular choice for first-time homebuyers.

• VA Loans: Veterans Affairs (VA) loans provide favorable terms for eligible veterans and active-duty military personnel.

• USDA-RD Loans: United States Department of Agriculture Rural Development (USDA-RD) loans are available for properties in eligible rural areas.

Conventional Loan Programs

• HFA Advantage (Freddie Mac): This program offers reduced mortgage insurance (MI) premiums for borrowers with income at or below 80% of the area median income (AMI). Borrowers above 80% AMI will pay standard MI rates.

The Application Process

Applying for the Hometown Heroes TBA Loan Program involves several steps:

• Step 1: Attend Training and Get System Access

  Lenders participating in the program must attend online training sessions and obtain access to the program's reservation and reporting system, eHousingPlus.

• Step 2: Qualify Borrowers

  Lenders will qualify borrowers based on program requirements and ensure that they meet all eligibility criteria, including employment, income limits, and credit standards.

• Step 3: Collect Documentation

  Borrowers must provide necessary documentation to confirm their eligibility, including proof of employment, income, and completion of a homebuyer education course.

• Step 4: Execute Sales Contract and Loan Application

  Once a fully executed sales contract is obtained, the lender will take the loan application in their origination system and provide program disclosures to the borrower.

• Step 5: Underwriter Certification

  The lender's underwriter will certify that the loan meets all program requirements. This certification should be completed no later than 60 days from the reservation date.

• Step 6: Prepare and Submit Loan Documents

  The lender will pull program closing documents from eHousingPlus and forward them to the closing company along with lender-generated first mortgage loan documents.

• Step 7: Close the Loan

  After the loan closes, the lender will submit a program compliance file to eHousingPlus for review and approval, and a closed first and second mortgage loan file to Lakeview Servicing for purchase review and approval.

• Step 8: Address Exceptions

  If there are any compliance or documentation exceptions, the lender will address and resolve them to ensure the loan can be purchased by Lakeview Servicing.

• Step 9: Finalize Purchase

  Eligible loans will be purchased by Lakeview Servicing, and lenders will be reimbursed for the net amount of table-funded first and second mortgages, along with a service release premium (SRP).

Frequently Asked Questions

Who is eligible for the Hometown Heroes TBA Loan Program?

The program is available to first-time homebuyers who are employed full-time by a Florida-based employer. Veterans and borrowers purchasing in federally designated targeted areas are exempt from the first-time homebuyer requirement. Eligible occupations include military personnel, teachers, healthcare workers, law enforcement officers, firefighters, and other essential workers.

How much down payment assistance can I receive?

Borrowers can receive up to 5% of the total loan amount, capped at $35,000, with a minimum of $10,000 in down payment and closing cost assistance.

What are the income limits for the program?

Income limits vary by county and are adjusted for household size. These limits are updated annually to reflect current economic conditions. Borrowers must meet these limits to qualify for the program.

Do I need to pay back the down payment assistance?

The down payment assistance is provided as a 0%, non-amortizing, 30-year repayable second mortgage. Repayment is deferred until the sale, transfer, or refinancing of the property, or if the borrower ceases to occupy the home as their primary residence.

What types of loans are available through the program?

The program offers both government loans (FHA, VA, USDA-RD) and conventional loans (HFA Advantage through Freddie Mac). Each loan type has specific benefits and requirements.

How do I apply for the program?

To apply, you must work with a participating lender who will guide you through the qualification and application process. The lender will ensure you meet all eligibility criteria and help you gather the necessary documentation. At My Forever Home, we specialize in helping heroes like you navigate the home buying process and secure the best possible terms.

What is the first-time homebuyer requirement?

Occupying borrowers must not have had an ownership interest in a primary residence within the last three years. Veterans and borrowers purchasing in federally designated targeted areas are exempt from this requirement.

Is homebuyer education required?

Yes, at least one borrower must complete a program-approved pre-purchase homebuyer education course. This requirement ensures that borrowers are well-prepared for the responsibilities of homeownership.

Can I use the program if I am self-employed?

Yes, self-employed borrowers are eligible. They must provide documentation to confirm their full-time employment and business registration with the Florida Department of State or licensing with the Florida Department of Business and Professional Regulation.

Why Apply with My Forever Home?

At My Forever Home, we are dedicated to helping you achieve your dream of homeownership. Here’s why you should choose us as your trusted partner:

Expertise and Experience

Our team of mortgage professionals has extensive experience with the Hometown Heroes TBA Loan Program. We understand the specific requirements and benefits of the program and can guide you through every step of the process.

Personalized Service

We offer personalized service tailored to your unique needs and circumstances. Our goal is to make the home buying process as smooth and stress-free as possible, ensuring you get the best possible mortgage terms.

Comprehensive Support

From initial consultation to loan closing and beyond, we provide comprehensive support to ensure your home buying journey is successful. We are here to answer your questions, help you gather necessary documentation, and address any challenges that may arise.

Commitment to Community

We are committed to giving back to the community and supporting those who serve. By working with My Forever Home, you are partnering with a company that values your contributions and is dedicated to helping you achieve your homeownership goals.

Conclusion

The Florida Hometown Heroes TBA Loan Program offers a unique opportunity for first-time homebuyers who serve their communities and country to achieve their dream of homeownership. With competitive mortgage rates, significant down payment assistance, and special benefits tailored for community and military heroes, this program is designed to make homeownership more accessible and affordable.

By understanding the program's key features, eligibility requirements, and application process, you can take advantage of this valuable resource and move one step closer to owning your dream home in Florida. If you meet the criteria and are ready to embark on your homeownership journey, contact My Forever Home today to get started. Our experienced team is here to help you every step of the way.

Reach out to My Forever Home today and take the first step towards your forever home. Let us help you unlock the door to your new home with the Florida Hometown Heroes TBA Loan Program.