Florida Homebuyer Opportunity Program | Free $8,000

The Florida Homebuyer Opportunity Program (FL HOP) was created during the 2009 regular legislative session it will provide $30 million in financial assistance to first time homebuyers eligible to receive the federal first time homebuyer tax credit established through the American Recovery and Reinvestment Act of 2009.

The FL HOP program will be administered through the State Housing Initiatives Partnership (SHIP) program; Eligible FL HOP applicants can receive up to $8,000 in purchase assistance, which is expected to be repaid by the applicant upon receipt of his/her federal tax refund.

The links on this page provide additional information on the program. Interested persons should contact their local SHIP office for additional information and/or to apply for the program.

Orlando’s Local SHIP Contact is:

Kerwin Mellott, SHIP Administrator
Housing and Community Development
525 E. South St.
Orlando, Florida 32801

                                                                                            Florida First Time Homebuyer Opportunity Program FAQ
                                          (pulled from| http://www.floridahousing.org/FH-ImageWebDocs/Housing%20Partners/Local%20Governments/FLHOP/FLHOP_FAQ.pdf)

How will funds be allocated?

Funds will be allocated according to the SHIP statute (420.9073, F.S.). All SHIP eligible local governments will receive some funding.

When will funds be available to local governments (you, the borrower)?

Due to documentary stamp collections, the first disbursement will not be available until the first week of August.

Where do interested persons apply for funding?

IN Orlando:

Kerwin Mellott, SHIP Administrator
Housing and Community Development
525 E. South St.
Orlando, Florida 32801
Phone: (407) 836-5172 FAX: (407) 836-5193
Email: kerwin.mellott@ocfl.net

When will funds be made available to the public?

Each local government will be able to process funding to applicants once they have received funding from the state in August. In some cases, local governments may not have completed their advertising or approval process at that time which would delay funding in that jurisdiction.

Can a borrower use the FHOP funding as the required 3.5% down payment requirement for FHA?

Borrowers who access the $8,000 tax credit through a state or local government program may use it to make up the required 3.5% DP; those who access through any other FHA-approved lender must (as with any standard FHA loan), provide the 3.5% themselves.

Can a mobile home be purchased?

The SHIP rule still applies related to ‘Eligible Housing”. However, since the passage and signing of SB 360, manufactured housing that meets certain criteria are eligible under SHIP. This change will be included in the rule during the rulemaking process.

How will the buyer’s income to determine eligibility, 2008 income or the 2009 income?

Look at their 2008 income tax return AND also determine that their income is also below $150,000 for 2009 when they buy their house.

In the LHAP, can an Income Max Below $150,000 per family be incorporated?

Eligibility must remain set at $75,000 for individuals and $150,000 for couples. However, there is no prohibition from setting a priority for first serving applicants with lower incomes before serving higher income applicants.

Does FHOP have a separate Education requirement for buyers?

There is nothing required in this Legislation, but the first mortgage provider often has some minimum requirement.  If the local government requires homeownership counseling, it is legible just as in SHIP.

Can you explain what you have referred to about 36 months?

The legislation States: (6) If the county or eligible municipality receives repayment from the homebuyer within 18 months after the closing date of the loan the county or eligible municipality shall waive all interest charges. A homebuyer who fails to fully repay the loan within 18 months shall be subject to repayment terms provided in the local housing assistance plan. Therefore, a jurisdiction may explain in its LHAP that it is setting a repayment plan which requires repayment starting 36 months after home purchase, in order to avoid negatively affecting FHA’s debt ratio calculations. The LHAP must clear state that the recapture terms will be recorded as a lien against the property. In addition, FHA’s Mortgagee Letter 2009-15 states that a balloon payment cannot be required.

Do our SHIP maximum purchase price limits apply to FHOP?

Yes.