Florida’s HOP program
For a brief overview of the program, please see my first posting
Eligible Homebuyer Requirements:
1. In order to receive a HOP Loan under the HOP program, the Eligible Homebuyer must:
(1) Have an Adjusted Income that does not exceed eighty
percent (80%) AMI
(2) Qualify as an Eligible Homebuyer at the time of the
execution of the purchase contract
(3) Occupy the Unit as their principal residence
(4) Provide a minimum down payment of $500, except when participating in a Self-Help program
(5) Not have Personal Assets in excess of $30,000 and Retirement Assets in excess of $100,000,
excluding equity contributions toward the Unit
(6) Complete a HUD approved or SHIP approved face to face homebuyer education course
(7) Comply with the HOP Homebuyer Underwriting Guidelines (5/1/08), which are adopted and
incorporated herein by reference and available at:
http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP.
2. The Eligible Homebuyer must maintain the following types of insurance, naming the Corporation as an additional insured:
(1) Replacement cost hazard insurance
(2) Title insurance in the amount of the HOP Loan
(3) Flood insurance if the Unit is located within the 100-Year Floodplain.
3. Repayment of principal on the HOP Loan shall be deferred until maturity or if the homebuyer sells, transfers or disposes of the Unit either voluntarily or involuntarily, or ceases to occupy the Unit as a principal residence pursuant to 24 CFR § 92.254(4) or 420.5088, F.S.
4. The Corporation will consider resubordinating its HOP Loan to a first mortgage loan when a refinancing occurs. In making a determination, the Corporation will review the following terms of the new transaction: loan type; term of the loan; fixed interest rate percentage; principal balance of the loan; reason for the request and whether or not the terms of the new loan are beneficial to the homebuyer. The homebuyer is subject to the following:
(1) The homebuyer must have resided in the property for at least one year
(2) No additional debt can be refinanced into the new first mortgage, with the exception of
Unit repairs or improvements which require that these funds be escrowed
(3) The homebuyer cannot receive any cash out as a result of the refinancing
(4) The homebuyer is limited to a single approved resubordination prior to repayment of the
mortgage
(5) The homebuyer is subject to a processing fee not to exceed $50. In the event it is determined
that the homebuyer is not eligible, fifty percent (50%) of the processing fee will be returned.
Requirements for Building Eligibility:
Additional Building Requirements:
Eligible Homebuyer Requirements:
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