City of Tampa Down Payment Assistance Brochure and Guidelines

CITY OF TAMPA

DOWN PAYMENT ASSISTANCE PROGRAM

The City of Tampa Housing and Community Development Division (HCD) is the administrator of the City's housing programs. The City offers down payment and closing cost assistance in the form of a Deferred Payment Loan (DPL) to income-qualified homebuyers purchasing a single-family home within the City of Tampa. Please note:

Completion of a City of Tampa approved homebuyer training class is required prior to submitting an application for assistance. HOMEBUYERS CERTIFICATES EXPIRE TWO YEARS FROM DATE ISSUED. The applicant must apply for a first mortgage after executing a real estate purchase contract. The lender will then submit the loan to the City for consideration.

WHAT IS A DEFERRED PAYMENT LOAN (DPL)?

A deferred payment loan is second mortgage with no interest (0%), requiring no monthly payments as long as the property remains your primary residence. The DPL is secured by a mortgage and a promissory note (a second mortgage lien), which defers repayments until a default occurs. This lien remains in effect for thirty years. A default will cause the loan to become due and payable. Default occurs in any of the following situations:

•· Transfer of title

•· Failure to maintain the residence as primary homesteaded property

•· Failure to maintain Fire & Hazard Insurance

•· Failure to pay Property Taxes

•· Default on first mortgage

WHO IS ELIGIBLE? (all of the following must be met)

•1. Applicant who has not owned a home during the past three years.

•2. Applicant who has been approved for primary financing by a lender.

•3. The annual percentage rate of the primary financing cannot exceed the FHA 30-year fixed rate by more than 2%, including all fees and charges associated with that lender's financing.

•4. Applicant's debt ratios shall be at or below 35% (PITI ¸ monthly income) and 47% ([PITI + monthly debt] ¸ monthly income).

•5. Applicant's gross income must be at or below the following annual income limits (80% median income) according to household size as determined by HUD, or (120% median income) according to household size as determined by SHIP.

AMOUNT OF ASSISTANCE AVAILABLE

Income at or below 80%	Income over 80% up to 120%
Up to a maximum of $60,000.00	Up to a maximum of 20% of the Purchase Price

The actual amount of down payment and closing cost assistance provided by HCD will depend upon a financial analysis of each individual household. Not all buyers will qualify for the maximum amount of assistance. Funding for the Down Payment Assistance Program is through the HOME Program, an entitlement grant from the federal government and through the State of Florida State Housing Initiatives Partnership (SHIP) program. All income limits and project cost limits are set by HOME or SHIP Program Regulations.

INCOME LIMITS

FEDERAL (HUD) 80% of Area Median Income/ STATE (SHIP) 120% of Area Median Income:

Federal State Federal State

1 PERSON	$31,650 $47,520	5 PERSONS	$48,800 $73,200
2 PERSONS	$36,150 $54,240	6 PERSONS	$52,450 $78,600
3 PERSONS	$40,700 $61,080	7 PERSONS	$56,050 $84,120
4 PERSONS	$45,200 $67,800	8 PERSONS	$59,650 $89,520

WHICH HOMES ARE ELIGIBLE? (all of the following must be met):

•1. Homes must be single-family, including town homes and condominiums, within the City of Tampa limits. (Mobile homes are not eligible.)

•2. Home must become applicant's homestead.

•3. Home must be one of the following:

•· Vacant for no less than 60 days prior to execution of sales contract.

•· Owner-occupied

•· New construction

•4. Maximum purchase price of a home must be at or below $226,000.00.

•5. A property appraisal must be done. The purchase price cannot exceed appraised value.

•6. Existing homes will require a Housing Quality Standards (HQS) inspection (selected and paid for by the buyer or the seller) utilizing approved HQS inspection format. Escrow for repairs to be completed after closing must be approved in writing by HCD. Any home built prior to 1979 will require a testing for Lead-Based Paint (LBP). The inspector must be an EPA certified LBP inspector. For a list of inspectors, check the Yellow Pages under Lead Inspector or Environmental Consultants and confirm their EPA license. Any lead paint abatement must be completed by an EPA certified LBP abatement contractor and must be completed prior to closing. Abatement must be performed by an EPA certified LBP contractor under "Safe Work Practices" to do stabilization. Clearance documentation must be sent to HCD.

MINIMUM DOWN PAYMENT:

The amount of down payment to be provided from buyer's own funds is $500.00. This requirement can be satisfied by the earnest money deposit and/or cash at closing. No credit is given against this requirement for expenses such as home inspection and lender application and appraisal fees.

APPROVED HOMEBUYER EDUCATION CLASSES:

Ask me about our Home buyer workshop class (813) 235-9889 Katrina Madewell*

*Note: some agencies provide homebuyer education as part of a complete homebuyer assistance program, which includes more than homebuyer education.

Homebuyer Education Certificates from online and self-study courses will not be accepted after May 30, 2008

HOUSING & COMMUNITY DEVELOPMENT DIVISION

APPLICANT'S DOCUMENT CHECKLIST

DOWN PAYMENT ASSISTANCE PROGRAM

Completion of a City of Tampa approved homebuyer training class is required prior to submitting an application for assistance. HOMEBUYERS CERTIFICATES EXPIRE TWO YEARS FROM DATE ISSUED. If an applicant has executed a real estate purchase contract, they must apply for a first mortgage. The lender will then submit the loan to the City for consideration. Please note: Your lender may require different and/or additional documents not listed on the following checklist:

•1. Completed HCD Application for Housing Assistance requires the following information:

•· Name, social security number, date of birth, marital status, and years of schooling for applicant and co-applicant (if any)

•· Current address (including landlord addresses) for the past two (2) years

•· Complete list of all household members and their relationship to applicant residing in the new residence

•· Name and address of each employer for the past two (2) years (for all employed household members)

•· All other sources of income for all household members (e.g. child support, social security, pensions, retirement)

•· Names, account numbers, and account balances of all bank accounts, CDs, stocks, bonds, insurance, etc. (Also include any real property you own)

•2. Authorization form signed by all household members receiving income.

•3. Proof of number of household members: One or more of the following (as applicable) may be required to provide additional information on household size as needed:

•· Birth certificate(s) on which the parent/applicant's name is listed

•· School record(s) which provide the parent/applicant's name and address

•· Court-ordered letter(s) of guardianship

•· Divorce decree

•· Letter(s) of adoption.

•· Social security card(s)

•4. Last two (2) pay stubs for all employed household members. If self-employed, copy of most recent income tax return and a copy of an annual profit and loss statement for the business that projects income for the next 12 months.

•5. Child support documentation for each applicable child (such as divorce decree and recent statements, etc.)

•6. Recent SSI, Social Security, Disability, Pension, documents for each applicable recipient

•7. Copy of executed sales contract (with name of title company)

•8. Last six (6) bank statements for each account in the household (including children/dependents)

•9. Name, address and telephone number of the lender with whom you are working

•10. Appraisal (when available from lender)

•11. Housing Quality Standards (HQS) inspection report (if an existing home)

•12. Lead Based Paint clearance (if home is built prior to 1978)

•13. If you do not submit all required documents within ten days of your application, it will be considered incomplete and will be rejected.