The City of Tampa is offering a unique opportunity for income-eligible first-time homebuyers to achieve their dream of homeownership through its Dare to Own the Dream program. This program aims to provide up to $40,000 in down payment assistance loans, which can help buyers purchase a property within the city limits of Tampa.
The program is designed to make it easier for individuals and families to overcome financial barriers and enter the housing market, creating stable and prosperous communities throughout the city. This article will delve deeper into the program’s details and eligibility requirements and highlight the benefits of this program for potential buyers.
The Dare to Own the Dream program is an excellent opportunity for those who may not have been able to purchase a home otherwise. The program’s financial assistance can help bridge the gap between a buyer’s financial situation and the cost of homeownership, enabling them to secure a property in Tampa. By providing this assistance, the City aims to promote economic stability, create a sense of community, and encourage long-term investment in the city’s residential neighborhoods.
Key Takeaways
- The City of Tampa offers down payment assistance loans up to $40,000 for income-eligible first-time homebuyers purchasing property within the City limits.
- The loan is in the second position behind primary financing and is known as a “silent second”with a 0% rate and $0 monthly payment as long as the property remains the owner’s primary residence and owner-occupied.
- Household income must be at or below 140% Area Median Income (AMI), and the loan types are flexible, including fixed and fully amortized products such as FHA, VA, and Conventional Affordable Housing Products, but ARM loans are not allowed.
- The program requires a minimum of $2,000 investment from the borrower, with at least $1,000 from the borrower’s own verifiable funds, and a full independent home inspection by the buyer and a Pass HQS Inspection by the City before closing. The loan is fully forgivable after 10 years, assuming the property is still owner-occupied.
Program Details
The Dare to Own the Dream program offered by the City of Tampa provides down payment assistance loans of up to $40,000 to income-eligible first-time homebuyers for properties within the City limits.
The loan is in the second position behind primary financing from a mortgage lender and is typically known as a ‘silent second’due to the 0% rate and $0 monthly payment. The Deferred Payment Loan (DPL) can remain silent as long as the property continues to be the owner’s primary residence and owner-occupied, making it an attractive option for those looking to purchase a Tampa home.
The program’s income requirements are based on household income, not just the loan applicant’s income. To be eligible for the program, the household income must be at or below 140% Area Median Income (AMI).
The loan types are flexible, including fixed and fully amortized products such as FHA, VA, and Conventional Affordable Housing Products, but ARM loans are not allowed. Additionally, the loan terms require a minimum of $2,000 investment from the borrower, with at least $1,000 from the borrower’s own verifiable funds.
Eligibility Requirements
Prospective buyers seeking to qualify for the City of Tampa’s down payment assistance loan program must initiate the application process with one of the three approved housing counseling agencies and engage the services of a loan officer and real estate agent from the City’s current approved lists.
The first step in the application process is to attend homebuyer education classes and receive counseling services from one of the approved housing counseling agencies, which include Housing Education Alliance, Real Estate Education and Community Housing, Inc. (R.E.A.C.H), and Solita’s House, Inc.
Once the buyer has completed the education and counseling requirements, they must work with a loan officer and a real estate agent from the City’s approved lists in order to obtain primary financing and identify a property that meets the program’s eligibility requirements.
In addition to working with approved housing counseling agencies, loan officers, and real estate agents, prospective buyers must also meet income eligibility requirements in order to qualify for the program.
Household income must be at or below 140% of the Area Median Income (AMI), and debt ratios must be within 36/43%. Additionally, the minimum mid-credit score required is 600, and the purchase price of the property cannot exceed $300,000 (if the buyer qualifies for primary financing).
Furthermore, the buyer must invest a minimum of $2,000, with at least $1,000 coming from their own verifiable funds.
By meeting these eligibility requirements and engaging in the application process with the approved parties, prospective buyers can access up to $40,000 in down payment assistance funds to help them achieve their dream of homeownership in the City of Tampa.
Additional Information
To participate in the City of Tampa’s down payment assistance loan program, interested individuals must contact one of the approved housing counseling agencies, which include Housing Education Alliance, Real Estate Education and Community Housing, Inc. (R.E.A.C.H), and Solita’s House, Inc.
These agencies offer a range of services, including Homebuyer Education classes in both English and Spanish, Homebuyer Counseling services, and down payment closing cost assistance funds. Additionally, these agencies can guide potential homebuyers through the application process, helping them navigate the program’s eligibility requirements, debt ratios, and income limits.
Participating in Homebuyer Education and Housing Counseling Services is an essential component of the City of Tampa’s down payment assistance program. These services provide potential homebuyers with the knowledge and tools they need to make informed decisions about the home buying process.
By participating in these services, individuals can gain a better understanding of the responsibilities and obligations that come with owning a home, as well as learn about the resources that are available to help them achieve their homeownership goals. Ultimately, these services can help potential homebuyers feel more confident and prepared as they embark on the journey to homeownership with the support of the City of Tampa’s down payment assistance loan program.
Resource: https://www.tampa.gov/housing-and-community-development/programs/mortgage-assistance