Tampa First Time Home Buyer Programs

Dreaming of buying your first home in Tampa? With a lively job market, high number of home buyers, and warm weather all year round, Tampa has become2022's top housing market in the nation. However, this means that the competition will be tougher and property prices will be higher as well.

For most people, buying a house is a top goal. But with the changes in the economy, achieving homeownership has become a bit of a challenge. Thankfully, there are Tampafirst-time home buyer programs available.

In this article, we're going to discuss mortgage programs for first-time buyers in Tampa and where to get help with the application.

City of Tampa Mortgage Assistance Program

The City of Tampa offers a down payment assistance loan to those who are purchasing a home within the city limits of Tampa. This program provides a maximum award of $14,999 to help eligible home buyers get into homeownership. Because of its 0% interest rate and 0% monthly payment, this home loan assistance program is also known as "second silent".

Take note that not all borrowers will receive the maximum award. The amount you'll get will depend on what you need.

Here are the main features of the City of Tampa mortgage assistance program:

• Maximum award of $14,999. This involves the down payment assistance of up to 20% of the buying price or $10,000 whichever is less. Additionally, assistance is available to cover up to 50% of the closing costs or $4,999, whichever is less.
• The potential buyer must begin the home buying process with one of the four approved Housing Counseling agencies and must not be under contract before receiving a reservation number. The counseling agency will provide homebuyer education classes, complete applications with clients, and collect necessary documentation.
• Fully forgivable after 5 years, assuming the property is still owner-occupied.
• The income required is based on the household income and not just the loan applicant.
• The household income should be at or below 140% of the Area Median Income (AMI).
• Can be used on fixed and fully amortized VA, Conventional, and FHA mortgages.
• Can be used on a maximum home cost price of $226, 926.
• Qualifying factors include a mid-credit score of 600 and a DTI ratio of 33/41%.
• A minimum of $2,000 investment from the borrower with at least $1,000 from the borrower’s own verifiable funds are required. The additional $1,000 may be used for POCs (appraisal, inspections, etc.)
• A full independent home inspection by the home buyer and an HQS inspection by the city are required before closing.

Dare to Own the Dream (DARE)

The Dare to Own the Dream or DARE program is another down payment assistance loan provided by the City of Tampa for homebuyers within the city limits of Tampa. Just like the mortgage assistance program mentioned above, DARE is also a "silent second" with a 0% rate and 0% monthly payment. The primary difference between these two programs is that DARE provides a maximum award of $40,000 and, thus, requires a bit higher qualifications.

Here are the highlights of Tampa's Dare to Own the Dream program:

• Maximum award of $40,000 depending on the needs of the borrower.
  • 0-50% AMI                 $40,000.00
  • 50.01%-80% AMI       $30,000.00
  • 80.01%-120% AMI     $20,000.00
  • 120.01%-140% AMI   $15,000.00
• The potential buyer must use the services of a Loan Officer and Real Estate Agent (if applicable), who is reflected on the City’s current Approved Lender List and current Approved Realtor List.
• Fully forgivable after 10 years, assuming the property is still owner-occupied.
• Can be used on fixed and fully amortized FHA, VA, and Conventional loans.
• Can be used on a maximum home purchase price of $300,000.
• Qualifying factors include a mid-credit score of 600 and a DTI ratio of 36/43%.