Down Payment Assistance Orlando

Assistance Available

The City of Orlando offers financial assistance to first time homebuyers with incomes varying from very low to moderate. Additionally, financial assistance is available for teachers, city employees, and public safety workers who purchase homes in Orlando. Depending on income and other relevant factors, awards can range from $10,000 to $30,000.

Who is Eligible for Down Payment Assistance Orlando?

• First time homebuyers program who meet the criteria for:
  • Very low household income
  • Low househole income
  • Moderate household income
• Eligible moderate income public safety personnel who are first time homebuyers.
• Moderate income full-time certified public or private school teachers and administrators in Orange County. Applicants do not have to be first time homebuyers to be eligible for this program.
• Moderate income City of Orlando employees who have been employed by the city for six months. Employees do not have to be first time homebuyers.

Do I Meet the Income Requirements?

The determination of whether or not your income meets the criteria for one of these programs is based on a combination of household income and size. The specific dollar values change each year because they are based on the median income for the area.

To be classified as a very low income household the income must be 50 percent of the median income for the area or less. Low income households range from just over 50 percent to 80 percent of median. Households with incomes from slightly above 80 percent of median up to 20 percent above the median are considered moderate income households. Those with incomes greater than 120 percent of the area's median income are not eligible to participate in some programs.

You can view the current Income Guidelines on the City of Orlando’s website.

Program Criteria

• Homebuyers must pay $1,000 of their own money toward the down payment.
• The buyer cannot have greater than $7,500 in liquid assets.
• Applicant cannot have owned a home in the past three years for certain programs, with possible exceptions for displaced homemakers.
• The applicant must qualify for a first mortgage from a lender certified by the city of Orlando.
• If a co-borrower signs for the loan, he or she must occupy the property.
• Applicant must complete an approved education program for home buyers that includes pre-purchase and post-purchase training. Post-purchase training is required within 90 days of closing.

Property Guidelines

• The property must be located within the city limits of Orlando.
• The home can be new construction or an existing dwelling.
• The structure can be a single-family dwelling, a townhouse, a condominium, or a manufactured home.
• The dwelling must pass a Housing Quality Standards (HSQ) inspection prior to closing.
• The residence must comply with all applicable local and federal codes.
• The home must have an expected useful life of 30 years or more.

Exclusions

• The property cannot be a trailer or a mobile home.
• The property cannot be occupied by a tenant at the time of the sale.

Conditions for Grant Funds

At the time of closing, a secondary mortgage is recorded on the property for the amount of down payment assistance. The mortgage is forgiven once the homeowner meets the requirement of occupying the property as his or her primary residence for a minimum of ten years. However, if the homeowner does not meet this requirement, all down payment assistance funds must be repaid.

Additionally, those who qualify for the program as a function of their employment must meet continuing employment requirements. Educators who receive down payment assistance are required to continue employment in an Orange County school for a minimum of five years following receipt of funds. Public safety officers who receive assistance are required to continue to work in that capacity for a minimum of five years after closing. City of Orlando employees are required to remain employed with the city for at least five years after receiving assistance.

Circumstances Requiring Repayment

If any of the following situations occur within ten years of the property’s purchase, the down payment assistance funds will have to be repaid to the city.

• The property is rented
• The property is sold
• Homeowner stops living in the property
• Property is refinanced
• Employment requirements are not met

How to Apply

If you’re planning to purchase a home in the City of Orlando it is a good idea to check out the city’s exceptional down payment assistance program. If you meet the income eligibility requirements the first thing you should do is attend free homebuyer education classes. Applications are processed on the basis of a first come, first served basis, so don’t procrastinate. For information on how to register visit the website for the City of Orlando. Once you have attended the required classes, you will have more knowledge about the program and will be able to proceed to the next step in qualifying for down payment assistance Orlando.