Housing Down Payment Assistance
The City of St Petersburg Program
You can buy your own home,
1% of the purchase price!
WHO WE ARE?
The City of St. Petersburg offers financial assistance to homebuyers purchasing new or existing single-family homes, condominiums, townhomes, or cooperative apartments within the city’s municipal boundaries.
For over 22 years, Generation Mortgage Associates LLC has been helping our communities secure down payment assistance from various cities and counties. We are not affiliated with any government entity but are approved lenders with several institutions that provide this support to our community.
Stop Paying Rent!
If you pay $2,000 a month in 2 years you are giving away $48,000
REQUIREMENTS
The buyer should be willing and able to meet the following conditions before applying for a loan to assist with buying a home:
Contribute an amount equal to 1% of the sales price into the transaction including out-of-pocket expenses attributed to the transaction such as earnest money deposit, appraisal, credit report, and property inspection.
Attend a first-time homebuyer educational training class provided by a HUD-approved housing counseling agency and receive a certificate of completion for that class
Purchase a modest housing unit with a sales price not exceeding $510,939 located within the city’s municipal boundaries.
Have the property inspected by a licensed home inspector (any deficiencies cured prior to closing).
Ability to sustain homeownership with sufficient residual income to meet anticipated and unanticipated expenses.
Maintain occupancy of the unit as a primary residence for the term of the Housing Down Payment Assistance subordinate mortgage loan or until the loan is paid, after which time the mortgage loan will be satisfied.
INCOME ELIGIBILITY
To be eligible for Housing Down Payment Assistance, a homebuyer’s total annual household income, as defined by the U. S. Department of Housing and Urban Development (HUD), cannot exceed the maximum annual income limit as adjusted for the number of occupants, related or not, residing within the residence.
Annual income is calculated by adding all sources of income from all household members over the age of 18 currently living in the home or will occupy the home within one year. Income includes salaries, child support, alimony, social security, pensions, public assistance, income-producing assets, or income from any other source.
Example: You have a family of 4 in the household, you can NOT earn more than $76,400 (including projected wages increments).
For Homebuyers at or below 80% Area Median Income (AMI)
LOAN TERMS
Housing down payment assistance is provided in the form of a subordinate mortgage loan not to exceed $60,000 and shall be made available to eligible homebuyers whose total household income does not exceed 80% of the Area Median Income (AMI) as defined by the U.S. Department of Housing and Community Development for the St. Petersburg geographic area. The loan amount is determined by the property’s sales price and costs associated with closing the transaction.
An amount equal to 20% of the purchase price shall be attributed to the down payment.
A maximum of $5,000 shall be provided to fund standard closing fees and service charges. Should the borrower’s required 1% contribution into the transaction be insufficient to pay all necessary prepaid items such as the appraisal, credit report, home inspection, and hazard insurance, the City will consider funding the cost of those items over and above the maximum 1% requirement.
The total loan amount, for assistance in paying for down-payment and closing costs, is secured by a mortgage recorded in the public records of Pinellas County.
The mortgage lien is subordinate to the first mortgage.
After 10 years of continued occupancy, the Housing Down Payment Assistance loan will be 100% forgiven and the City’s subordinate mortgage loan will be satisfied, and no monies will be owed to the City.
See what You Qualify For
Who is responsible for submitting the application for a homebuyer seeking assistance?
When a homebuyer is seeking assistance, it's the responsibility of the lender to submit the application on their behalf. Rather than handling the application process themselves, homebuyers should rely on their lender to take care of this step. This approach ensures that the application is completed accurately and efficiently, leveraging the lender's expertise in navigating financial systems and applications. By allowing the lender to manage this task, homebuyers can focus on other important aspects of the home-buying journey with confidence.
What should lenders do before applying on behalf of a buyer?
Preparing to Apply on Behalf of a Homebuyer
Before lenders step forward to apply on behalf of a homebuyer, they should undertake a few essential steps to ensure a seamless process:
Access and Review Resources: Begin by downloading and thoroughly examining any available resources or toolkits specifically designed for lenders. These documents typically contain vital guidelines and requirements that can streamline the application procedure.
Understand Your Role: It's crucial for lenders to fully grasp their role in the application process. Direct communication with homebuyers is advisable to manage expectations and to establish a straightforward, efficient application strategy.
Compile Necessary Documents: Gather all required documentation. This might include financial statements, credit assessments, and personal identification documents of the homebuyer, ensuring everything is in order before submission.
Clarify the Process with Homebuyers: Communicate proactively with homebuyers, ensuring they understand that the application should be submitted by the lender for clarity and compliance.
By diligently preparing and coordinating with homebuyers, lenders can facilitate a smoother, more efficient application process.
Where can homebuyers attend the required Homebuyer Education Class?
Where Can Homebuyers Attend the Required
Homebuyer Education Class?
If you're a homebuyer taking advantage of the city's Housing Down Payment Assistance Program, attending and completing an eight-hour Homebuyer Education Class is a key step. This class must be conducted by an agency approved by the Department of Housing and Urban Development (HUD).
Available Options for Your Homebuyer Education Class:
-Local Housing Services Many cities have neighborhood housing services where these classes are offered. These services often work closely with community members to provide valuable educational resources.
-Neighborhood Home Solutions Neighborhood-focused organizations often provide educational opportunities to help buyers navigate the complexities of purchasing a home.
-Phone Support To find a suitable class, reach out to local housing counseling agencies. Customer service can offer guidance on scheduling and enrollment details, ensuring you receive your certificate of completion.
-Online Directories Check online directories of HUD-approved agencies to find classes you can attend either in person or online, tailored to fit your schedule.
With these resources, you'll be well-prepared to meet the program requirements and move one step closer to owning your home.
What is the process for applying for the Housing Down Payment Assistance Program?
How to Apply for the Housing Down Payment Assistance Program
If you're seeking support through the Housing Down Payment Assistance Program, here's a detailed guide to help you or your lender get started.
For Lenders:
Prepare the Necessary Documents: Start by downloading and reviewing the comprehensive Lender Tool Kit. This toolkit provides essential guidelines and requirements critical for a successful application.
Submit the Application: As a lender, you are responsible for submitting the application on behalf of your client, the homebuyer. It's important that homebuyers do not apply directly; instead, coordinate with them to gather all necessary information.
Check Eligibility: Note that only applications for homes situated within specified areas are accepted at the moment. Ensure that the property falls within these eligible areas to prevent submission issues.
Pending Applications: If you have previously submitted applications, these will continue to be processed. However, keep in mind that the current limitations mean some applications might face restrictions, especially those above the 80% AMI threshold.
Focus on Specific Regions: Priority is currently given to properties located in designated areas under specific programs, allowing for applications up to 140% AMI. Ensure you confirm the property location before applying.
Additional Notes
Applications for properties not falling within specified regions are currently on hold. Stay tuned for notifications regarding when these applications might resume.
For mapping and further details, third-party platforms offer resources and links to view eligible areas.
By following these steps, lenders can navigate the application process effectively, ensuring that eligible homebuyers receive the assistance they need.
What type of primary mortgage loan must a homebuyer obtain to qualify for assistance?
What Type of Primary Mortgage Loan Must a Homebuyer Obtain to Qualify for Assistance?
To qualify for homebuyer assistance, it’s essential to secure a primary mortgage loan that’s affordable and reliable for the long term. Here’s what to keep in mind:
Affordability: Your mortgage should comfortably fit within your budget, with monthly payments you can sustain over time.
Fixed or Adjustable Rates: A fixed-rate mortgage offers consistent payments, while an adjustable-rate mortgage may suit those expecting income changes in the future.
Competitive Terms: At Generation Mortgage Associates, we offer a wide range of loan programs with competitive rates and flexible terms tailored to your needs.
By working with Generation Mortgage Associates, you'll receive expert guidance and access to mortgage options that help you qualify for available homebuyer assistance programs with confidence.
What are the repayment terms for homebuyers purchasing homes outside the South St Petersburg Community Redevelopment Area?
Homebuyers earning between 81% and 140% of the area median income (AMI) and purchasing a property outside the South St. Petersburg Community Redevelopment Area have specific repayment terms to consider.
Once the home purchase is finalized, the repayment period for these buyers kicks off just one month after the closing date. During this time, understanding the detailed terms and managing the associated financial obligations is crucial for maintaining a stable homeownership experience.
If you're considering purchasing in other areas, compare the different terms and conditions available to ensure the best financial fit for your new home.
What is the status of applications for homes outside the South St Peterburg Community Redevelopment Area?
Status of Home Applications Outside the Redevelopment Zone
Currently, the application process for homes outside the South St. Petersburg Community Redevelopment Area is temporarily restricted. This is due to the fact that applications for households earning over 80% of the Area Median Income (AMI) are exceeding the city's spending limits.
Key Points:
Current Limitations:
Applications from households with incomes between 81% and 140% of the AMI are not being accepted at this time.
Notification Process:
The city plans to update applicants once they are ready to resume accepting applications outside the redevelopment area.
For those keeping an eye on application opportunities, stay tuned for future announcements from official channels regarding the reopening of the application process.
Work with an Expert Mortgage Consultant
22 Years Experienced as Loan Originator, 3 years as underwriting , 2 years as appraiser.
At Generation Mortgage Associates LLC , we partner with over 50 top lenders nationwide to find the best mortgage loan tailored to your specific needs. Regardless of your financial situation, credit history or income, we can secure a mortgage for you.
Our agents possess extensive expertise in the real estate market, staying ahead of trends and understanding property values. This enables them to offer you tailored, insightful guidance specific to your needs and goals.
Whether you prefer face-to-face meetings or virtual consultations, we are accessible and ready to assist. Trust us for a smooth and stress-free financing journey.
© Copyright 2025. All rights reserved by Generation Mortgage Associates LLC
Company NMLS#: 224585
1155 Pasadena Ave S - Suite H - South Pasadena, FL 33707
This website has not been reviewed, approved or issued by HUD, FHA or any governmental agency.