HFA Background

The HFA was created for the purpose of addressing a housing shortage in the County by stimulating the construction and rehabilitation of housing through the use of public financing.

Home Ownership Programs

The HFA currently offers four first mortgage options with rates as low as 4.99% (actual APR to be disclosed by the lender). Down payment and closing cost assistance is available with three of the four loan options in the form of a grant. For more information, see the Single-Family Program Page. For more information, see the Home Ownership Program page.

Rental Programs

The HFA currently has bond capacity available to provide financing for the development of rental properties, which meet certain income and rent restrictions. For more information, see the links to the Application and Multi-Family handbook on the Rental Programs Page.

February 1, 2010

HOME OWNERSHIP PROGRAM

The Authority currently offers a 4.99%, 30 year, fixed rate mortgage (actual APR to be disclosed by the lender). Down payment and closing cost assistance is also available in the amount of $5,000 per loan in the form of a 0% second mortgage. For more information, see the Single-Family Program page. There are $20 million of funds available on a first-come first-served basis.

Home Ownership Program

If you have ever dreamed about home ownership but felt that buying a home was a little beyond your reach, the Housing Finance Authority (HFA) of Hillsborough County may make your dream easier to reach with the 2009/2010 Home Ownership Program.

How does the program work?

The program offers a borrower a first mortgage loan at 4.99%. The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan. There are zero origination points and zero discount points on FHA, VA or RD loans (0.5% origination fee on conventional loans).

Down Payment and Closing Cost Assistance

Assistance is available in the form of a second mortgage of $5,000. The second mortgage is a 30-year deferred, 0% loan that may be used for down payment and/or closing costs. It is never forgiven and it is repayable at 30 years or sooner if the property ceases to be the borrower's principal residence, is sold, refinanced or rented.

What kind of home may I purchase?

You may purchase a new or existing single family home (attached or detached) a condo, town home or PUD anywhere in Hillsborough County, including unincorporated Hillsborough County, the City of Tampa, the City of Temple Terrace or Plant City. The purchase price of the home may not be more than $258,690. In some areas of the county there are areas referred to as "targeted areas" that have higher income and sales price limits. A participating lender can provide information regarding targeted areas.

Who qualifies?

1. Buyers must be first-time buyers (have not had an ownership interest in a home for the past three years) and meet standard credit requirements.
2. There are household income limits:
1-2 Person Household Income Limit = $63,831
3 or More Person Household Income Limits = $73,406

Cost and Cost Savings

In addition to the low rate first mortgage and downpayment assistance, the first mortgage and note are exempt from documentary stamp and intangible tax --this represents a significant savings. Buyers should check with participating lenders for disclosure of all fees charged to the homebuyer, including the bond program fee of $225.

What are the steps in the process?

Complete Do I Qualify on the next page.

If you answer YES to any of the questions, this program may not be able to assist you. If you answer NO to all questions, for more information (including referrals to participating lenders), buyers may contact the program administrator's office toll free at 888-316-8536. Local lenders who wish to participate may also call the toll free number for more information. You may also contact eHousing Plus (Sue Denihan at 813-671-7344) with general questions, or contact a participating lender so they may pre-qualify you for a loan. The lender will determine your eligibility for a loan and notify you. You will also be required to provide the lender with other information necessary.

If you answer NO to all questions, for more information (including referrals to participating lenders), buyers may contact the program administrator's office toll free at 888-316-8536. Local lenders who wish to participate may also call the toll free number for more information. You may also contact eHousing Plus (Sue Denihan at 813-671-7344) with general questions, or contact a participating lender so they may pre-qualify you for a loan. The lender will determine your eligibility for a loan and notify you. You will also be required to provide the lender with other information necessary.

Am I Eligible for the Federal $8,000 Tax Credit?

Homebuyers may utilize the Authority's 5.0% loan and downpayment assistance AND also take advantage of the federal $8,000 tax credit (if you qualify for the tax credit). However, buyers must have binding contracts by April 30, 2010 and close by June 30, 2010 to be eligible for the federal tax credit. You may discuss the terms of the federal tax credit and your eligibility with a participating lender.

What is Recapture Tax?

The benefits provided by this loan are considered a federal subsidy of your mortgage loan. Federal law requires a recapture of some of the benefit if all three of the following are true:

1. The property ceases to be your primary residence during the first full 9 years of ownership;
2. You make a net profit on the sale of the home;
3. Your household income exceeds the allowable income at the time of the sale.

Your tax preparer can assist you with determining if you owe recapture tax.