Home Key Plus 2nd Mortgage: A New Financial Solution for Homeowners
The Housing Finance Authority of Pinellas County has developed a comprehensive First-time Homebuyer Program, aimed at assisting potential borrowers in purchasing their dream homes. This program not only provides a primary mortgage but also offers substantial down payment assistance through the Home Key Plus 2nd Mortgage.
Enhanced Financial Support for Homebuyers
The Home Key Plus 2nd Mortgage offers eligible applicants a non-amortizing, zero-interest second mortgage, enhancing their ability to afford a home. The program provides up to $7,500 in assistance, specifically to help cover down payment and closing costs. This loan becomes repayable under certain conditions: if the borrower sells or refinances the property, pays off the first mortgage, rents out, or ceases to occupy the property as their primary residence.
Eligibility Criteria for Applicants
To qualify for this program, applicants must meet several key requirements:
- They must be first-time homebuyers (defined as those who have not owned a home in the past three years) or veterans.
- U.S. citizenship or permanent residency is required.
- Completion of an 8-hour, HUD-approved homeowner education course is mandatory.
- Applicants are required to contribute a minimum of $1,000 from their own funds.
- The program has specific income and credit requirements:
- Credit score requirements are 660 for the FHA version and a minimum of 640 middle FICO for Conventional loans.
Income Limits and Property Price Caps
The program sets income limits based on household size and whether the property is in a target or non-target area:
- Maximum for Non-Target Area:
- 1 or 2-person household: $70,300
- 3 or more-person household: $80,845
- Maximum for Target Area:
- 1 or 2-person household: $84,360
- 3 or more-person household: $98,420
Property Eligibility and Guidelines
Properties purchased with assistance from this program must be the borrower’s primary residence and occupied within 60 days of closing. Eligible properties include new or resale homes, but manufactured homes are not permitted. The purchase price limits are:
- Non-Target areas: $294,600
- Target areas: $360,067
The First-time Homebuyer Program with the Home Key Plus 2nd Mortgage by the Housing Finance Authority of Pinellas County is a significant initiative, offering a blend of financial assistance and educational resources. It is designed to empower individuals and families in their pursuit of homeownership, making it more accessible and affordable.
