The Homeownership Loan Program was created to consolidate the Homeownership Assistance Program (HAP) Construction Loan, the HAP Permanent Loan and the HOME Homeownership Loan programs into a combined rule and application process.

The HAP Construction Loan provides a five-year, zero percent interest construction loan to eligible developers for the lesser of 33 percent of the total development cost or $1,000,000. Eligible developers include nonprofit developers and nonprofit sponsors, established pursuant to Section 617, F.S., and local governments/public housing authorities, with preference given to Florida Housing certified community based organizations, and to developments that have received funding from Florida Housing's Predevelopment Loan Program.

A minimum of 30 percent of the homes must be sold to eligible homebuyers who have an adjusted income that does not exceed 50 percent of the area median income (AMI), and a minimum of another 30 percent of the homes must be sold to eligible homebuyers who have an adjusted income that does not exceed 80 percent AMI. Any remaining homes must be sold to persons or households that have an adjusted income that does not exceed 150 percent AMI.

The HAP Permanent Loan Program provides a zero percent interest nonamortized second mortgage loan to eligible homebuyers purchasing a home built by a participating developer. In order to be eligible, a person's or household's adjusted income cannot exceed 80 percent AMI. This loan is available in an aggregate amount not to exceed the lesser of $30,000, 25 percent of the purchase price of the home, or the amount necessary to meet credit underwriting criteria, based on the monthly mortgage payment to income underwriting ratio. The term of the loan is the lesser of 30 years or the term of the first mortgage, and is due upon maturity, sale, refinancing or rental of the property.

The HOME Homeownership Loan Program provides five-year, zero percent interest construction loans to nonprofit developers and three percent interest construction loans to for-profit developers for the lesser of 33 percent of the total development cost or $2,000,000. Eligible homebuyers whose adjusted income does not exceed 80 percent of the area median income, receive a zero percent second mortgage loan for 25 percent of the purchase price of the house. Eligible participants include Nonprofits and for-profits with preference given to Florida Housing certified community housing development organizations and to developments that previously received funding from Florida Housing's Predevelopment Loan Program.

For more detailed information, including the application submittal process and scoring criteria, select Program Materials from the menu on the left and select the Homeownership Loan Program Summary document, or contact a program staff person.