Housing and Community Development Division “Dare to Own the Dream” Homeownership Program (DARE)
The City of Tampa offers down payment assistance loans to income-eligible home buyers of property within the City limits of Tampa. The loan is in the second position behind primary financing from a mortgage lender and is typically known as a “silent second” because of the 0% rate and $0 monthly payment. The Deferred Payment Loan (DPL) will become due and payable when the primary mortgage is satisfied or ownership is transferred, whichever comes first. The program provides up to $30,000.00 to assist income-eligible first-time homebuyers to achieve the dream of homeownership. Here are the basic highlights of the City-Wide “Dare to Own the Dream” Homeownership Program:
- 1) The potential buyer must begin the process with one of the approved Housing Counseling agencies and MUST NOT be under contract before receiving a reservation number. The Counseling agency will provide education (see below for class schedules), complete application with the client, and collect documentation.
- 2) $30,000.00 max award toward down payment & closing costs: $30,000.00 to eligible buyers whose household income is 80% AMI or below; $15,000.00 to eligible buyers whose household income is above 80% up to 140% AMI.*
- 3) Due and payable when the first mortgage is satisfied or the property is sold, whichever comes first.
- 4) Income calculated based on HOUSEHOLD income, not just the loan applicant.
- 5) Household income must be at or below 140% Area Median Income (AMI).
- 6) Debt ratios of 33/41%. Mid-Credit Score of 600.
- 7) The maximum purchase price is $226,926.00 (regardless of price, you must qualify for the loan payment)
- 8) Minimum of $2,000 investment from the borrower with at least $1,000 from the borrower’s own verifiable funds. The additional $1,000 may include POC’s (appraisal, inspections, etc.)
- 9) Loan types are flexible – Includes fixed and fully amortized products: FHA, VA, and Conventional Affordable Housing Products allowed; ARM loans are not allowed.
- 10) A full independent Home Inspection by the Buyer and a Pass HQS Inspection by the City is required before closing.
- 11) You must attend a City of Tampa Home Buyer Education Class.
The City of Tampa’s Housing & Community Development Division in partnership with Federal Home Loan Bank of Atlanta is proud to announce the Community Heroes Program. The Community Heroes program provides funds to match the City’s down payment assistance program. Through this added funding community heroes have an even greater opportunity to own a home in the community where they serve. Eligible participants can receive a $5,000 grant to match the funding provided through the City’s “Dare to Own the Dream” Homeownership Program.
ELIGIBLE BUYERS INCLUDE:
- 1. Law Enforcement Officers
- 2. Firefighters
- 3. K-12 Public School Staff
- 4. Other First Responders
- 5. Hospital/Medical Personnel
- 6. Code Enforcement Officers
- 7. Building Inspectors
- 8. Parks and Recreation Staff
- 9. Planning and Development Staff