Down Payment and Closing Cost Assistance

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					                                                                CITY OF TAMPA
                                              MORTGAGE ASSISTANCE PROGRAM
                           The City of Tampa Housing and Community Development Division (HCD) administers
                           the City’s housing programs. The City offers mortgage 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 (only
15yrs for Neighborhood Stabilization Program (NSP) properties). A default will cause the loan to become due
and payable. Default occurs in any of the following situations:
 Transfer of title or Failure to maintain the residence as primary homesteaded property
 Failure to maintain Fire & Hazard Insurance or 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 (not required for NSP).
2. Applicant who has been approved for primary financing by a lender.
3. The annual percentage rate of the primary financing cannot exceed the Freddie Mac weekly market fixed rate by
   more than 2%. No Yield Spread premiums allowed.
4. Applicant’s debt ratios shall be at or below 31% (PITI  monthly income) and 45% ([PITI + monthly debt] 
   monthly income). Lender may require different debt ratios.
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 $20,000.00               Up to 20% of the Purchase Price maximum of
                              ($40,000 for NSP)                                    $10,000.00

The actual amount of mortgage 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
Mortgage Assistance Program is through the HOME Program and the Neighborhood Stabilization Program (NSP),
grants 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, NSP or SHIP Program Regulations. If the
buyer’s housing expense is less than 20%, the buyer can only qualify for assistance in an amount equal to the buyer
paid closing costs and prepaid items up to a maximum of $8,000.00.

City of Tampa – Housing and Community Development, 306 E. Jackson St., Third Floor, Tampa, FL 33602; 813-274-7954; FAX 813-274-7945
REV April 2012
                                    INCOME LIMITS
FEDERAL (HUD) 80% of Area Median Income/ STATE (SHIP) and NSP 120% of Area Median Income:
                      80%          120%                            80%         120%
 1 PERSON            $31,600     $47,400    5 PERSONS             $48,750    $73,200
 2 PERSONS           $36,100     $54,240    6 PERSONS             $52,350    $78,600
 3 PERSONS           $40,600     $60,960    7 PERSONS             $55,950    $84,000
 4 PERSONS           $45,100     $67,680    8 PERSONS             $59,550    $89,400

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.) Homes with inground swimming pools 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 $150,000.00.
5. A property appraisal must be done. The purchase price cannot exceed appraised value.
6. Existing homes 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 1978 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.
   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 Housing & Community
   Development.

MINIMUM DOWN PAYMENT:
The amount of down payment to be provided from buyer’s own funds is 1% of the purchase price. This
requirement can be satisfied by the earnest money deposit and/or cash at closing (This does not include POC
costs). No credit is given against this requirement for expenses such as home inspection and lender application or
appraisal fees. Your lender may require a higher down payment.

APPROVED HOMEBUYER EDUCATION CLASSES:
The agencies below provide Homebuyer Education classes approved by the City of Tampa:
       CredAbility – Nonprofit Credit Counseling & Education    phone: 800-251-2227
       The Center for Affordable Homeownership (THA)            phone: 813-251-5402
       The Housing and Education Alliance                       phone: 813-932-HOME (4663)
       Third Federal Savings and Loan (Ida Campbell)            phone: 813-333-1671
       CDC of Tampa, Inc.                                       phone: 813-248-2552
       Solita’s House                                           phone: 813-425-4847
       City of Tampa Housing and Community Development          phone: 813-274-7954
       Catholic Charities of the Diocese of St. Petersburg      phone: 813-707-7508
       NACA* (Neighborhood Assistance Corp. of America)         phone: 1-888-302-6222
       Homebuyer Education Certificates from online and self-study courses are not accepted.

Website: tampagov.net (go to “Select a Department” and select Housing and Community Development).


City of Tampa – Housing and Community Development, 306 E. Jackson St., Third Floor, Tampa, FL 33602; 813-274-7954; FAX 813-274-7945
REV April 2012
                                              City of Tampa
                                     Planning & Development Services
                                Dept of Housing & Community Development
                                              (813) 274-7954

                                        A New Homeownership Opportunity

The City of Tampa, working with several housing providers, is purchasing foreclosed homes and renovating
those homes for resale to qualified, income-eligible homebuyers. This is part of the City of Tampa
Neighborhood Stabilization Program (NSP). These homes are located in neighborhoods throughout the City as
listed below:

                 City of Tampa NSP Home Ownership Areas

                 Sulphur Springs                                      Live Oaks Square
                 North Tampa Community                                Northeast Macfarlane
                 University Square                                    North East Community
                 Old West Tampa                                       Lowry Park Central
                 Terrace Park                                         Temple Crest
                 Rivergrove                                           Riverbend
                 Woodland Terrace

The homes will have energy efficient features and new appliances to enhance long-term affordability. The
project goal is to redevelop and sell 80 completely renovated homes. The first homes will be completed early in
2010. Purchase prices should average about $100,000.00.

Buyers cannot own a home at the time a contract to purchase is signed. Buyers must be pre-qualified by the
Housing and Community Development Division before submitting a purchase contract. The home must be the
buyer’s primary residence.

The City will assist eligible homebuyers by providing mortgage assistance. The assistance amount will be
secured by a deferred payment mortgage at 0% interest, no monthly payments, and will, if the buyer remains the
owner-occupant, be forgiven after fifteen years. Maximum amount of assistance is the lesser of $40,000.00
or 50% of the purchase price. If the buyer’s housing expense is less than 20%, the buyer can qualify for
assistance in an amount equal to the buyer paid closing costs and prepaid items up to a maximum of $8,000.00.


   2012 NSP INCOME LIMITS ADJUSTED FOR FAMILY SIZE AS PER “SHIP” GUIDELINES AS
                               POSTED ABOVE, PG. 2


As properties are purchased they will by listed on the Housing and Community Development website:
http://www.tampagov.net/dept_housing_and_community_development/.

For additional information, contact the Housing and Community Development Division of the Department of
Planning & Development Services, at (813) 274-7954 or any of the housing providers listed below.


City of Tampa – Housing and Community Development, 306 E. Jackson St., Third Floor, Tampa, FL 33602; 813-274-7954; FAX 813-274-7945
REV April 2012
         Organization                        Contact             Phone Number                 Email Address
Alexander Inc Of Tampa Bay                Sudesh Maraj           813-377-2020         max@maxmaraj.com
Coach Foundation, Inc.                     Willie Dixon          813-254-3700         wdixon2558@aol.com
                                         Phillip A. Smith                             psmith@crosland.com
Crosland, LLC                                                    813-777-6981
                                          Bowen Arnold                                barnold@ddadevelopment.com
                                                                813-672-7860 x
Florida Home Partnership, Inc.              Earl Pfeifer                              earl@flhome.org
                                                                      242
Mourer and Mourer, Inc.            Don Mourer                    813-310-2379         ddmjr@verizon.net
                                 Inc.
Richard A. Stenholm Construction,Richard Stenholm                813-839-5627         rstenholm@cfaith.com
APD Solutions                            Rodney Milton                                rodneyrmilton@adpsolutions.com



  For a list of available properties go to tampagov.net (on drop-down menu “Select a Department” go to Housing
  and Community Development).




  Revised Apr 2012




  City of Tampa – Housing and Community Development, 306 E. Jackson St., Third Floor, Tampa, FL 33602; 813-274-7954; FAX 813-274-7945
  REV April 2012
                                City of Tampa Mortgage Assistance Program Process

        The following is an outline of the steps involved in approval for Mortgage Assistance. This is
        a summary of the process.

         1.      Complete an approved homebuyer education class.

        2.       Schedule an appointment with the City of Tampa Housing and Community
        Development Division to complete an application. The City will then verify income and other
        eligibility information. If qualified and eligible, the City will issue an income eligibility letter
        to the applicant. The City will do the income eligibility process before the applicant has
        completed a homebuyer education class, but will not issue the eligibility letter until class
        certification is received.

         3.      Receive income eligibility letter from the City.

         4.      Select a lender and obtain a pre-approval.

         5.      Shop for a home.

         6.      Select a home and complete purchase contract and mortgage application.

         7.      Lender submits financing package information to the City for review. Continues
                 processing for approval.

         8.      City completes processing for Mortgage Assistance loan approval.

         9.      Close on property and move in.

         Items required for application include:

        1. At least two recent paystubs for employed applicants. Income statements or benefit award
        letters for retirement income, social security, etc.

         2. Credit and debt information and rental history.

         3. Recent bank statements.

        4. Identification information for all household members: driver license, social security card,
        etc.

         5. Copy of most recent IRS tax return.

         6. Proof of other income including child support, alimony, etc.

         7. Other information as needed relating to income and assets.




City of Tampa – Housing and Community Development, 306 E. Jackson St., Third Floor, Tampa, FL 33602; 813-274-7954; FAX 813-274-7945
REV April 2012
         Contact Information:

         City of Tampa
         Housing and Community Development Division
         2105 N. Nebraska Ave.
         Tampa, FL, 33602

         813-274-7954

        Website: http://www.tampagov.net/dept_housing_and_community_development/




City of Tampa – Housing and Community Development, 306 E. Jackson St., Third Floor, Tampa, FL 33602; 813-274-7954; FAX 813-274-7945
REV April 2012

				
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