The City of Titusville, Florida / Community Development / Neighborhood Services / Housing / GOALS & PROGRAMS / First Time Homebuyer ProgramFirst Time Homebuyer Program
APPLICATIONS ARE BEING ACCEPTED STARTING OCTOBER 1, 2019
The City of Titusville offers loans to qualified applicants who wish to purchase and occupy new or existing homes within the city limits. First-Time Homebuyer Assistance loans can be used for down payment, closing costs, and/or interest rate buy down. These loans are deferred and offered at a 0% interest with no monthly payments required. Repayment of the principal balance of the loan plus a portion of the net appreciation is required when the home is sold, the property is transferred, or the home is no longer owner-occupied as primary resident during the loan term period. The loan terms are as follows:
ASSISTANCE REPAYMENT TERM FORGIVENESS RATE
Under $15,000 5 years 0% *
$15,000 to $40,000 10 years First 5 years at 0%, then 20% per year thereafter*
More than $40,000 15 years First 5 years at 0%, then 10% per year thereafter*
*PLUS: % of pro-rated share of the difference between the sales price and the original purchase price; net closing costs, improvements, etc. Example provided below:
In the event of default (sell or title transfer), the full amount of the loan will be owed to the CITY OF TITUSVILLE in addition to a pro-rated share of the difference between the sale price and the initial cost of the home at the time assistance was provided. For Example:
Initial Purchase Price of Home= $185,000
Assistance Provided= $ 45,000
Percent of Assistance to Purchase= 24%
New Sale Price= $200,000
Amount due the City= $ 48,600 (45,000+24% of $15,000)
**In the event an Essential Services Personnel receiving the additional incentive in Section G of the policy terminates their employment, he/she shall be required to repay only the incentive portion of the loan, unless he/she is in default; then the loan terms in Section H of this policy shall apply.
- First time homebuyers only (not having ownership in the past 3 years)
- Must have ability to secure first mortgage financing
- Conventional, FHA, VA are all acceptable; 30-year fixed rate. MORTGAGE LOAN MUST BE AT CURRENT MARKET INTEREST RATES. If buyer cannot get a mortgage loan at a current interest rate, C.H.I. will first assist the buyer in correcting credit issues.
- Liquid assets (savings, checking, CD's, treasury bonds, money market, savings bonds, etc.) can not exceed $8,000.
- Must attend a 5 hour Homebuyer Education Workshop.
- Maximum sales price and income limits apply.
- The home must pass a housing inspection and be free of lead-based paint. All required repairs or lead-based paint abatement must be done before closing.
FAIR HOUSING MARKETING
The City of Titusville takes all steps necessary to ensure affirmative marketing to further the fair housing objectives of Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, as amended, and other relevant federal, state, and local fair housing laws that will attract eligible persons from all racial, ethnic, and gender groups in the housing market area. A wide range of marketing strategies are implemented to ensure that eligible persons living within Titusville city limits are informed and have ample opportunity to participate in the City's First Time Homebuyers Program.
Eligible housing purchase assistance includes new or existing single family homes, condominiums, town homes, or modular homes. Mobile or Manufactured Homes are not eligible. Property, including lot, may not exceed 90% of the Melbourne-Titusville-Palm Bay Metropolitan Statistical Area (MSA) Median Area Purchase Price, as established by the United States Department of Treasury and provided by Florida Housing Finance Corporation, as may be adjusted periodically. Effective 2019, the purchase price may not exceed $185,000 for existing homes and $238,000 for new construction, for the City of Titusville. ALL PROPERTIES MUST PASS A HOME INSPECTION AND BE FREE OF LEAD-BASED PAINT.
The proposed monthly mortgage payment cannot exceed buyer's affordability ratios (front-end 34%, back-end 42%).
LEVELS OF ASSISTANCE FOR THE 2017 PROGRAM ARE:
INCOME LEVEL % of the area median income Maximum Subsidy Amount*
Very Low Below 50% of the area median income up to $45,000.00
Low Between 50% - 80% of the area median income up to $35,000.00
*The actual amount of assistance provided would be the minimum amount needed to get an affordable housing unit. THE PROGRAM WILL NOT OVER SUBSIDIZE ANY HOUSEHOLD.
HOMEBUYER'S CONTRIBUTION REQUIREMENTS ARE:
Applicants must make a MINIMUM GOOD FAITH CONTRIBUTION based upon their income bracket. Out of Pocket expenses paid before closing are considered as part of the applicant’s contribution (i.e. appraisal fees, credit reports, deposits, homeowner’s insurance premium, etc.). At closing, the minimum contribution must be satisfied on the settlement statement. The lender may require more contribution.
Very Low Income (50% or less of AMI $500.00
Low Income (51% to 80% of AMI) $1,250.00
2020 INCOME LIMITS
Qualifying homebuyer's income must be at or below 80% of the area median income, adjusted to household size, as shown below. These amounts are subject to change:
FAMILY SIZE INCOME LIMIT
ARE YOU READY TO BE A HOMEOWNER?
Beginning October 1, 2019 Community Housing Initiative, Inc, (C.H.I.) will accept applications for the City's First-Time Homebuyer Program. CHI will implement the City of Titusville's First-Time Homebuyer Program; they are dedicated to assisting residents in attaining home ownership.
C.H.I. administers the City's down payment and closing cost assistance, marketing, pre-screening, income and asset verification, loan processing, property inspections, closing requirements and recording of the city's mortgage.
As a potential homebuyer there will be documentation that you will need to gather; you will need to know and understand your credit and credit score; you will need to know how much house you can afford; you will need to fill out forms, submit an application, fill out more forms, and fill out even more forms. To guide you through this process and to answer any questions that you might have you can go directly to C.H.I.'s website at www.chibrevard.org and explore all the areas of importance to you. You may also call CHI at 321-253-0053 for more information on or after October 1, 2019.
C.H.I is not a Finance Company nor a Realtor, therefore, you will need to make arrangements for financing and locating a home in which you would like to purchase. However, you should contact C.H.I. before you begin that process to inquire about funding availability, how long the waiting list is, which level of assistance you qualify to receive and the maximum purchase price of a home you can afford to buy. Once these factors have been determined, it is recommended that you contact several lenders to get the best rate and terms package that most closely meets your needs. When you call the lenders, identify yourself as an applicant for Titusville's First-Time Homebuyer's Program and your lender will do the rest. The lender will "Pre-Qualify" you for a loan amount. A "Pre-Qualification" is NOT a commitment by the lender but an estimate of the maximum loan amount you may qualify for after you have selected your home.
HOME BUYER EDUCATION
It is a requirement of receiving assistance through the City of Titusville's First Time Homebuyers program, implemented by C.H.I., that all homebuyers attend and complete a five hour Homebuyer Training Workshop. Homebuyers not fulfilling this requirement will not be eligible to receive funds under this program. The course is designed to educate the client on the program's rules and regulations and all aspects of home ownership, fair housing, and the purchase/mortgage process.
C.H.I. is a HUD approved Housing Counseling Agency. As such, they conduct many types of counseling services; pre-purchase counseling, credit counseling, rental counseling, homebuyer education and mortgage default counseling. It is highly recommended and to the benefit of each homebuyer to participate in these counseling services prior to committing to purchase a home.