Hometown Heroes Down Payment/Closing Cost Assistance Program

[Chelsea Dillon]

Hello,

I live in the Tampa Bay area and recently got approved for the recently passed Hometown Heroes program for the state of Florida. This is a down payment and closing cost assistance program for first time home buying teachers, first responders, police officers, etc. I see this as an opportunity to get started with investing in real estate.

Short breakdown of program:

-Must be primary residence

-eligible home buyers will receive up to 5% of their first mortgage loan amount (up to a maximum of $25,000) in down payment and closing cost assistance in the form of a 0%, non-amortizing, 30-year deferred second mortgage.

-can be refinanced or sold after 6 months

My question is what would you do to turn this opportunity into an investment?

Thank you!

Chelsea D.

[Obed Calixte]

The Florida Housing site has the below additional key notes about the program— with the second sentence being key. Gathering additional details around that would be critical (if you have not already).

“Down payment and closing cost assistance is available in the form of a 0%, non-amortizing, 30-year deferred second mortgage. This second mortgage becomes due and payable, in full, upon sale of the property, refinancing of the first mortgage, transfer of deed or if the homeowner no longer occupies the property as his/her primary residence. The Florida Hometown Heroes loan is not forgivable.”

To your question— some ideas would be considering house-hacking, live in flip, small multifamily with FHA or a home that has potential to add an ADU.