Down Payment Assistance Program
Information Statement

This program is made available through the Pinellas County Board of County Commissioners and is implemented through a contract with various community-based processing agencies. The purpose of the DOWN PAYMENT ASSISTANCE PROGRAM is to help income eligible households share in the American dream of home ownership. The program provides financial assistance in the form of interest free, second mortgage loans with repayment deferred for five years.

ELIGIBLE PROPERTIES
Single-family detached houses, townhouses, villas, cooperatives, and condominiums are eligible types of housing. Mobile homes are not eligible; however, funds can be used to purchase a leasehold in a resident-owned manufactured housing community. Rental and income-producing properties are not eligible. The home must serve as the applicant's primary residence; vacation homes and second homes are not eligible. Properties may be located in unincorporated Pinellas County or within the boundaries of one of the cities listed below.

Properties located inside the city limits of Clearwater, Largo, St. Petersburg, and Belleair Shore are not eligible for this program. Please contact those cities for information about their programs.

The purchase price for the property cannot exceed $175,750. This program does not displace existing renters; sellers must certify that a renter did not occupy the property at the time of contract signing. Unless the property is a newly constructed home, applicants must obtain a home inspection to confirm that the property meets minimum quality standards and to identify problems that may result in additional costs in the near future. The cost of the inspection may be included in the loan.

ELIGIBLE APPLICANTS
Applicants must meet income guidelines.

Applicants purchasing in all eligible areas qualify if a household income is at or below the amounts given in the "Area Wide" row. Incomes limits in the "Target Areas Only" row apply only to those applicants purchasing in selected Target Areas throughout Pinellas County. For information on Target Area locations, please check with the Processing Agencies listed later in this statement.

LOAN AMOUNT AND TERMS
The maximum loan amount is $10,000. Repayment is deferred for five years. Beginning in year six, the loan is repaid at 0% interest over the next three to ten years, depending upon the amount of the loan. Although this is primarily a down payment assistance program, loan funds can be used to pay closing costs equivalent to three percent (3%) of the purchase price. Applicants must contribute a minimum of two percent of the purchase price; half of that amount may be gift funds.

Applicants must qualify for a first mortgage, demonstrating the ability to meet standard underwriting and lending guidelines. In general, the first mortgage lender’s documentation shall be sufficient to meet criteria for assistance under this program. However, no assistance will be provided if the applicant’s first mortgage commitment carries excessive fees, adjustable rates, balloon payments, or interest rates that are higher than FHA rates for similar loans.

The County's loan amount combined with the first mortgage amount cannot exceed 105% of the value of the property. Down payment assistance loans are not assumable. Outstanding balances are usually due and payable if the borrower sells, rents, leases or otherwise vacates the residence. However, the Department will work with subsequent buyers to determine if they qualify to assume the mortgage.

LOAN ADMINISTRATION
This program is administered through Processing Agencies. Each processing agency works differently. But in general, an application will be mailed to the applicant or a personal interview and in-home visit arranged, if needed. A representative will meet with the applicant to walk through the property, discuss needed repairs with the homeowner, and help compile a list of items to be repaired or replaced. The homeowner will obtain cost estimates from licensed general contractors. It is recommended that at least three contractors be interviewed so that the owner can compare costs and bids, and determine which contractor with whom they would want to work. The agency will assist the homeowner by helping to review the estimates and advising the homeowner if the bids are complete and reasonable. The homeowner then selects a contractor to complete the work. The contractor must agree to comply with the Community Development Department's guidelines and to warranty the work for a minimum of one year. Once the homeowner selects a contractor, the agency will arrange for loan settlement. A draw schedule will be developed to determine how funds will be released to the contractor. A representative will inspect the contractor's work to confirm that it has been completed. Some agencies may require contractors to complete special training programs. To apply, call (727) 464-8210 or Apply on line Now!

All loan payments are sent to SunTrust Mortgage, Inc., the servicing agent for Pinellas County Community Development loans. All loan payments are due on the first day of each month. There is a 5% late fee for any payment that is over 15 days late.

Review criteria and processing guidelines are determined by the processing agencies and approved by Pinellas County Community Development. It is not practical to list all possible requirements and terms in this abbreviated format. Interested residents should contact Community Development if they have questions or need more information about program requirements or processing. If any resident feels they have not received an adequate response to their inquiry, please contact, Single-Family Programs Administrator, at the address below.

Pinellas County Community Development Department 600 Cleveland Street, Suite 800 Clearwater, Florida 33755 Phone (727) 464-8210 Fax (727) 464-8254

Our goal is to offer the residents of Pinellas County the highest quality service possible. We are always interested in any comments about the quality of our services or suggestions for ways to improve them.

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