Program summary: Leon County is providing down payment assistance funds to first time homebuyers to ensure that residents of the unincorporated areas of the County derive the maximum possible economic benefit from the federal first time homebuyer tax credit created through The American Recovery and Reinvestment Act of 2009. 

 Parameters:

 Leon County has received a funding allocation for the FHOP program to assist 15 first-time homebuyers interested in purchasing their home in unincorporated Leon County. These funds are allocated on a first come, first qualified basis.

Leon County is providing a loan for your use to assist with purchasing your first home until you receive your first-time homebuyer tax credit. You must purchase your home on or before November 30, 2009. The funds loaned to you should be repaid to Leon County within 10 days of your receipt of your first-time homebuyer tax credit check from the IRS, or within 18 months of receiving assistance.

Eligibility and Criteria:

 A. Income Categories to be served: Up to $75,000 for single taxpayers or $150,000 for joint filers.  

 B. Leon County requires two separate processes for documenting income:

1. Determine if an applicant is eligible via their 2008 tax return.

2. Using the SHIP income verification process, which documents estimated income for the next 12 months.

 C. Property types: Single family, condos, town-homes, and modular/manufactured homes with the Department of Community Affairs insignia, in accordance with Chapter 553, Florida Statutes, are eligible for assistance. No mobile homes.

 D. Home Buyer must occupy the home as their primary residence.

 E. The maximum award is the smaller of:

1. $8,000.00 (but only half that amount if married filing separately), or

2. 10% of the purchase price.  

F. APPLICANT FLOW, see below:

1. Phone-in eligibility screening;

2. Borrower, upon applying for first-mortgage loan with lender, will have their 2008 tax return verified with the IRS to ascertain any outstanding tax liability to determine loan amount;

3. Borrower will also have their 10 year historical tax account verified with the IRS, by the Lender, to ascertain any outstanding tax liability, that can also effect loan amount;

4. Borrower will have their most recent three-year historical tax returns verified with the IRS, by the Lender, showing no mortgage interest paid as one type of proof of first-time homebuyer status;

5. Lender’s verification at this stage will provide further eligibility or non-

eligibility confirmation; 

6. Borrower works with Lender to get first mortgage approval, and Realtor to purchase a property from a seller and obtain an executed purchase & sale contract.

7. With the first mortgage approval, Lender will reserve your FHOP assistance funds with the County;

8. Borrower to visit County by appointment to verify income, re-verify 2008 tax return, re-verify tax account status, and executing all applicable program documents;

9. Upon Income Certification by the County and review of your tax records, the County will issue an “Award Letter” confirming your down payment and closing costs assistance FHOP funds;

7. Borrower will attend the required homebuyer education class, using award letter to allow entrance into the class;

8. Borrower, Lender, Title Company, & County will close on the first mortgage

 and our second and or third mortgage assistance loan.

 G. Our Assistance is a loan and is recorded as a lien against your property in the form of a second/third mortgage. Our assistance is never forgiven – it must be paid back.

 H. Receiving your tax credit is obtained by the use of IRS Form 5405. Visit www.IRS.gov to obtain one and a copy of its instructions.

 I. Disclosure Statement: There are two (2) costs that you will/may be responsible for associated with your approval process.

a. Homebuyer Education Class cost of $125.00, which can be paid out of your pocket (money order or cashier’s check only), or, you can elect to have the cost deducted from your award.

b. On occasion, during our income verification process, a lending institution will not provide us more than three (3) months of banking history without charging a fee (our program requires six (6) month), ranging from $15 to $35, and you will be required to pay this amount. If your bank does not charge a fee to provide historical information up to six (6) months, you pay nothing.

 J. Terms, Recapture and Default:

a. If Leon County receives repayment from the homebuyer within 18 months after the closing date of the loan, Leon County shall waive all interest charges and or fees. A homebuyer who fails to fully repay the loan within 18 months shall be considered in default.

 b. An FHOP default loan penalty is 10% of the loan amount, a one-time charge.

K. Obtaining a home inspection report before receiving a FHOP award shall be mandatory.

L. Maximum purchase price must be $204,000 or lower.

M. You must purchase in unincorporated Leon County.

N. You must attend a Home Buyer Education Counseling Class/Seminar.

O. You must contribute 1% of the purchase price from your own funds.

Applicant Flow Chart