Down Payment Assistance Program
Lake County offers assistance to help low and moderate income households purchase homes. The program is funded through the State Housing Initiatives Partnership (SHIP). The funds can be used for down payments, closing costs and mortgage buydowns for new homes, or for existing homes that have been or will be repaired within twelve months of transfer of title. The maximum purchase price for new and existing homes is $247,387. Up to $5,000 of the assistance can be used for repairs to existing homes. Extremely low, very low and low income households purchasing newly constructed homes will also be eligible for partial impact fee waivers. The amount of SHIP assistance available varies by income category.
The buyer must
- Meet the income requirements. Annual household income cannot exceed 120% of the area median income.
- Complete a home buyer's education seminar.
- Secure first mortgage financing.
The assistance is in the form of a deferred second mortgage which is forgiven after ten years. No payments are due if the borrower lives in the home for the term of the mortgage; however a lien held by the County is placed on the home during the mortgage period. If, before the ten years have elapsed, the home is sold, ceases to be the principal residence of the borrower, the borrower refinances with cash out or uses the home as collateral for a home equity line of credit, the loan must be repaid in its entirety within 30 days of closing. The loan does not need to be repaid if the refinancing was to obtain a lower fixed interest rate, or to create additional living space due to an increase in family size.
Households wishing to participate in the Home Purchase program must be creditworthy, able to obtain a thirty year fixed rate first mortgage from an approved lender that meets the Lake County Lenders’ Guidelines, cannot currently own another home, and must have incomes that do not exceed the following guidelines based upon household size.
The property must
- Be new or existing with substantial rehabilitation and located in Lake County (some areas may be excluded).
- Not exceed a sales price of $247,387.
- Receive competitive fixed rate financing.
- Be fee simple ownership.
Until further notice, Lake County will no longer provide downpayment assistance to existing homes unless the home receives substantial rehabilitation.
The assistance
- Ranges from $10,000 to $35,000 depending on household income.
- The County's assistance is provided to the buyer's closing agent at closing in the form of a soft second mortgage which is forgiven after ten (10) years if the home remains owner-occupied.
- In addition, the total first mortgage and Lake County's second mortgage may not exceed 105% of appraised value.
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Information gathered from mortgage lenders, Lake County and HUD websites for lake county down payment assistance program, down payment assistance program does and will change in features and benefits. Two4One of Orlando, its broker or agents do not warrant or guarantee any information.