HPA program offers renters the possibility of homeownership
Broward County, Florida – In South Florida, where the housing market has become exorbitantly expensive, many aspiring homebuyers are left with their dreams of homeownership in shambles. Fortunately, Broward County’s Homebuyer Purchase Assistance Program (HPA) is a beacon of hope for those struggling to transition from renters to homeowners.
With over four decades of success, the HPA program provides a second mortgage loan with a 15-year term and absolutely no monthly payments. According to Suzanne Weiss, the program’s administrator, “it’s one of our most sought-after programs because it provides 0% interest money.”
The HPA program can furnish up to $80,000 of assistance for Broward County, and for small cities and unincorporated areas, up to $50,000 in assistance is available. If a buyer retains the purchased property for the entire 15-year term, the loan converts into a grant. The proceeds can be utilized for a variety of purposes such as down payment, closing costs, principal reduction, or to assist in reducing the interest rate on the first mortgage loan.
To qualify for the HPA program, the buyer must secure a 30-year first mortgage loan that conforms to county standards, pledge to use the property as their primary residence for the duration of the loan term, and not have owned a residential property within the last three years. Additionally, there is a cap on household income.
Broward County Income Category Chart (80% AMI):
|Household Size||Maximum Income|
As per the U.S. Department of Housing and Urban Development (HUD) Income Limits Documentation System, the income limits for the program are determined, with the gross annual household income not exceeding 80% of the area median income (AMI).
Suzanne Weiss, the program administrator, highlights that lenders undertake thorough client vetting to ensure eligibility, resulting in a 95% success rate for applications. The loan itself can be utilized for a range of property types, including single-family homes, townhomes, villas, condos, and even manufactured homes.
The maximum sales price for a property is capped at $382,194, with the exception of Weston, where the sales price may exceed this limit.
The program is available in more than 20 areas across Broward County, with other cities operating their own programs, each with varying funding amounts and income requirements.
Weiss emphasizes the importance of being mortgage-ready as the primary step towards becoming a homeowner. The process, taking approximately seven weeks, requires the individual to obtain pre-approval from a lender.
It is essential to note that funds are limited, and applications are considered on a first-come, first-qualified basis. Therefore, interested parties are encouraged to act promptly.