• Palm Beach County HFA Down Payment Assistance Program

Palm Beach County HFA Down Payment Assistance Program

  • 30-year, fixed-rate FHA first mortgage loans. This program is offered to all borrowers in Palm Beach County Florida who meet income, purchase price and other program guidelines, and can otherwise qualify for an FHA, VA, FNMA HFA Preferred, or FHMLC HFA Advantage mortgage loan.
  • Funds may only be used with a Florida HFA 1st mortgage loan.
  • Maximum Purchase price = $317,646
  • Maximum Household Income per Palm Beach County Florida
  • Palm Beach (1-2 person household = $76,900) (3 + persons = $88,435)
  • The down payment assistance comes in the form of either: a $10,000 - 0% interest, fixed-rate second mortgage loan for Palm Beach County. No monthly mortgage payments for the "silent second" mortgage.
  • Grant of 3%, 4% or 5% guidelines following the Lee County grant program.
  • Only one Florida down payment program can be used by the borrower per transaction.
  • The down payment assistance loan is immediately repaid if the homebuyer sells the home, transfers ownership, satisfies or refinances the first mortgage, or ceases to occupy the home. The Grant version of the program is never paid back.
  • First Time Homebuyer's or Borrowers or Spouse have not owned a home in the last 3 years.
  • IRS Tax Returns filed for the past 3 years for all Borrowers.
  • First and second mortgage Doc Stamps ARE exempt on this program. Intangible Tax is not exempt on the first mortgage but is exempt on the "silent second" mortgage.
  • Minimum Funds directly from Buyer of $1000.00 to close on the home.
  • 44.99% Debt to Income or less for FHA.
  • Fannie Mae and Freddie Mac conventional loans possible 49.99% back end DTI. Use AUS findings for acceptable ratio's.
  • Low fixed mortgage interest rates.
  • Eligible loan types include Conventional (Fannie Mae, HFA Preferred, Freddie Mac HFA Advantage), FHA, USDA, and VA loans.
  • Can purchase new or resale homes
  • Single-family residences, townhouses, villas, and Program APPROVED Condos, no manufactured homes. Duplexes, triplexes or quadruplexes are allowable unless the loan is a Freddie Mac loan, in which case the unit must be single.
  • Buyers must occupy property within 60 days of Closing.
  • 8-hour face to face or online HUD-approved Mortgage Counseling course required. Certificates valid for 2-years.
  • Primary Residences only, no second homes or investment properties.
  • No Prepayment Penalty Fee on if 1st mortgage loan is paid out early.
  • No cash back at closing, any excess funds will be used to pay down the first mortgage. In excess money can be used as a Principle Reduction.
  • Borrowers are permitted a reimbursement of prepaids and reimbursement of overage of earnest money deposit to the extent any minimum contribution has been satisfied and permitted by Agency guidelines.
  • The appraisal must indicate the structure has at least 30 years of possible life.
  • Credit restrictions:
  • Minimum 640 FICO scores credit score to qualify for all Conventional loans.
  • Minimum 660 FICO scores to qualify for FHA, VA and USDA loans.
  • FHA guidelines: bankruptcies discharged over 2 years or foreclosures older than 3 years, minimum 2 trade lines with no late's in the last 12 months, No NSF's in the last 6 months.
  • .Conventional either Fannie or Freddie Mac guidelines: Bankruptcies must be discharged over 4 years or foreclosures, short sales and deed in lieu older than 7 years, minimum 2 trade lines with no late's in last 12 months, No NSF's in last 6 months.
  • Co-Signors/Non-occupying Co-Borrowers allowed if related by blood, marriage or law and Agency guidelines.
  • Lender credit not available.
  • No Manual underwrites.
  • ALL Household income will be counted and must be below Palm Beach county income limits. This includes all part-time income and alimony. All income in the house must be counted, not just qualifying income.
  • Income must be supported by pay stub's and 2 year history of continuous employment. Gaps in employment can be considered. 2 year overall employment required, not necessarily continuous employment required.
  • Refinances: Not permitted.