Community Development
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 5 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. The chart shows the maximum gross household income for program eligibility. Eligibility is determined by household size. The household cannot earn any more than the amount shown. Household income includes all income from all household members including employment income, interest income, social security, dividends, pensions, alimony, and child support. For convenience, the chart shows maximum incomes as hourly, monthly, and yearly amounts.

Applicants purchasing in all eligible areas qualify if a household income is at or below the amounts given in the "Area Wide" row. Income 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 call Community Development at (727) 464-8210.

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 3% of the purchase price. Applicants must contribute a minimum of 2% of the purchase price; half of that amount may be gift funds. Gift funds should be arms length transaction, meaning that interested parties can’t contribute “gift” funds. Interested parties include seller, realtor, lender, and any other parties receiving financial benefit from the transaction. It is very common for the seller to contribute to closing costs and prepaids and that is considered a seller concession or seller contribution and not a borrower contribution. The exception to this rule is when the 1% gift funds is provided by a recognized self help organization providing the financing for the purchase of the home.

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.

An applicant can receive assistance once every five years. If the property receiving assistance goes into foreclosure or short sale resulting in the loss of funds to Pinellas County Community Development the applicant would not be eligible to receive assistance for 10 years from the date of the foreclosure or short sale.

LOAN ADMINISTRATION

This program is administered through Processing Agencies who are under contract to the County. 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, please contact, the 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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