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Down Payment Assistance (DPA) Second Mortgage Loan Terms:

  • DPA is a lien secured by a second mortgage
  • Up to 5% of the total loan amount with a maximum of $25,000
  • May be applied to closing costs, down payment, prepaids, upfront funding fee, or other related program and mortgage loan fees and expenses
  • 30-year second mortgage at 0%, non-amortizing, and deferred with zero monthly payment
  • Lien is NOT forgivable
    • Repayment is deferred until the event of the sale, transfer of deed, refinancing, satisfaction of the first mortgage, or when the mortgagor ceases to occupy the property

Product Highlights:

  • 30-year fixed rate first mortgage loan
    • FHA, VA, Conventional, and USDA
  • Primary residence only
  • Property must be in Florida
  • Must be able to permanently reside in the US
  • Must occupy the home within 60 days
  • Property types:
    • 1-unit Single Family/PUDs (includes townhomes)
    • 2–4-unit properties are restricted to 95% LTV
    • Repair Escrows are not permitted
    • Condominium and manufactured home properties are not eligible
  • Purchase transactions only
  • One borrower must be one of the following at application
    • Licensed or certified front-line worker
      • Will need a copy of the state license or certification
    • Must be actively employed full-time in Florida in a position in which their license or certification is held
      • A verification of employment must show full time as defined by the employer
    • Active military, veterans with any discharge other than dishonorable
    • A surviving spouse of a veteran, but is only eligible to use a VA loan
    • Fully executed heroes loan program attestation form signed by borrower
  • Minimum 640 credit score
    • Borrowers must generate at least 2 credit scores
  • Maximum debt-to-income (DTI) ratio varies by loan product as follows:
    • Conventional, FHA, and VA – maximum DTI varies by credit score as follows:
      • credit scores 640-679 – maximum 45% DTI
      • credit scores 680 or greater – maximum 50% DTI
    • USDA Loans- maximum DTI 45%
  • All borrowers must be a first-time homebuyer unless they have an exemption status
    • Have not owned nor occupied a primary residence within the last 3 years
    • Do not claim their mobile home as real property (it is located on a rental lot / land)
    • Veterans, active duty, and their spouses are exempt from the first-time homebuyer requirement
    • Surviving spouses must be a first-time homebuyer and is not exempt
  • There are no purchase price limits
  • Loan amount restrictions vary by county.  Duval, Clay, and St Johns County are:
  • FHA is $432,400
  • VA and Conventional is $647,200
  • Income limits vary by county and is 150% of the area median income
  • Duval, Clay, and St Johns County are $118,950
    • Income eligibility is determined by the income used in underwriting
    • Only income reflected on the loan application is considered
      • Household income is NOT used
      • Non-occupying co-signor income is included
  • Minimum borrower contribution varies as follows:
    • FHA/VA/USDA- no minimum borrower contribution
    • Conventional, varies by number of units, as follows:
      • 1-unit property- no minimum borrower contribution
      • 2-4-unit property- 3% minimum borrower contribution 
  • Cash back from DPA Funds is not allowed
    • Any potential cash back should be applied as principal reduction to the 1st mortgage
    • The maximum principal amount allowed is $1,000, if exceeded the loan amount must be reduced      
    • Cannot be used for an appraisal gap, but the borrower can use their own funds
    • Cannot be used to pay off borrower debt, but the borrower may use their own funds
  • Homebuyer education is required by the borrower and spouse

Click Here to View Occupations Eligible
For the Hometown Heroes Program

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