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Updates and Reminders for January 8, 2024
Hometown Heroes Program
HTH fallout funds are available today for reservation. By the time this email is sent, the funds may be completely utilized. As a reminder, all Florida Housing Programs are available Monday - Friday, excluding holidays, 10:00 AM - 8:00 PM ET.
FAQ
Can I cancel and loan and switch out a borrower? No, canceled loans will not be replaced with a new lock.
What if my HTH loan cancels due to the timeline, can it be reinstated? Most likely no, the funds will be utilized by another borrower. Loans must be underwriter certified by the 60th day or they will cancel.
When will more HTH funds become available? We hope that we will receive an appropriation in the 2024 session to offer the HTH Program in 2024.
Does this mean Florida Housing does not have any program available until later this year? No, Florida Housing still has the Bond and TBA Programs that offer down payment and closing cost assistance.
Targeted Area Census Tracts Effective Jan. 8, 2024
The Florida Housing targeted area census tracts have been revised and are available to view in the guidelines.
FAQ
What is a Targeted Area?
Means those areas within the State identified as Qualified Census Tracts and Areas of Chronic Economic Distress. Targeted Areas are determined by HUD specifically for this program by census tract. It is very important to only use the designated targeted area census tracts found within the Florida Housing guide.
What is special about a Targeted Area?
In the Florida Housing Bond Program, borrowers purchasing in a Targeted Area do not need to be first-time buyers and there are higher income and purchase price limits. This is to offer an incentive to purchase in a Targeted Area.
What changed?
Not every county in the state will have targeted areas. However, Florida Housing gained 10 new counties to the list and many existing counties had changes to the qualified census tracts.
Are there maps? How do I know a property is located in a targeted Area?
Yes, there are maps and they may be found on the flip card for the FHFC Bond program - click here then hover over the FL Bond flip card, scroll down to Targeted Area Census Tracts maps.
Click on this link to look-up the property address. Then, compare the tract code to the allowable targeted area census tracts listed in the Florida Housing guidelines. If you find a match, the property is located in a targeted area.
Other updates (Highlighted in yellow and revised in guidelines)
Cash Back to Borrower
Any potential cash back to borrower, including EMD, should be applied as a Principal Reduction (PR) to the first mortgage, with a maximum PR of $1,000 (this does not apply to fees incorrectly charged where a PR is required). If the amount exceeds $1000, you must rework the loan and lower the loan amount (LTV) with any excess funds.
Per agency guidelines, principal curtailments are required to be applied prior to delivery of the loan. A payment history is required on any loan where a principal reduction is applied.
If the funds are received as Gift Funds, we do allow a refund to the borrower. Since this is not the borrower(s)’ own funds, a refund of any excess gift funds is not considered “cash back”.
When refunding gift funds, include a copy of the Agency required Gift Letter in the compliance file. Adhere to any additional Agency (FHA, RD, FNMA and FHLMC) guidelines when applying a principal reduction for cash back other than those received from gift funds. Cash Back from a gift of equity is not permitted. Cash back from a gift of equity is not permitted.
Borrowers Changing Lenders
A borrower may not improve their interest rate by changing lenders. For any active loan or loan that has been cancelled within the last 60 days, the borrower will receive the higher of the previous locked rate or current interest rate if higher. Contact eHousngPlus to clear flags if cancelled and follow up with new loan number when locked so that rate adjustment can be made. This does not apply if the borrower is purchasing a different property from the original lock.
eHousingPlus Lunch & Learn Jan. 24th – The ABC’s of Targeted Areas
Click here to register to learn more about Targeted Areas.
How to determine if a property is located in a Targeted Area? Why are census tracts important? Where can I find the Targeted Area census tracts? Where are the maps of Targeted Areas?
You are not going to want to miss this Lunch & Learn session! Please use this opportunity to ask your questions to the program experts.
After you register, you will receive a confirmation email with the link to submit your question prior to the event.
Thank you for your continued participation in the Florida Housing Program.
Charles White
Homebuyer Loan Program Director
Charles.white@floridahousing.org
Sandy Smith
Homebuyer Loan Program Manager
Sandy.smith@floridahousing.org
Homeownership Loan Program Team
dpa@floridahousing.org
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