Home Purchasing Assistance Program

+ Eligibility requirements:

• Must be a member of Dade County Federal Credit Union
• First-time homebuyer(s)
• Property must be occupied by all borrowers as their primary residence and maintain homestead exemption throughout the term of DCFCU HPA, a minimum of six years.

Eligible property types:

• 1-unit, single-family house, PUD, townhouse, or villa.
• This program cannot be used to purchase a condominium, coop, or manufactured home.

Gross annual household income is determined by the county guidelines where the property is being purchased and may not exceed:

• 140% of the area median income (AMI) for purchasing in Targeted area or
• 80% of the area median income (AMI) for purchasing in Non-Targeted area
• Consistently employed at least 24 months.
• All borrowers must have a good, established credit history.
• All borrowers must be either a U.S. Citizen or have obtained legal permanent residency immigration status.
• All borrowers must be a Miami-Dade or Broward County resident at the time of application and closing.

+ First-time homebuyer definition:

A first-time homebuyer is an individual who meets any of the following criteria:

• An individual or spouse who has had no ownership of a residential real estate during the three-year period ending on the date of purchase of the property.
• A single parent who has owned with a former spouse while married.
• An individual who has owned a residential real estate not permanently affixed to a permanent foundation in accordance with applicable regulations.
• An individual who has owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

+ Additional Criteria:

• At least one borrower must complete approved homebuyer education training from a HUD approved agency. Certificate is valid for one year from issue.
• HUD site link for homebuyer counseling: https://www.consumerfinance.gov/find-a-housing-counselor/

Amount of Home Purchasing Assistance depends upon the census tract where the purchased Home is located:

• Not to exceed $100,000
  • In target areas will receive maximum 25% of purchase price
  • Outside of target zones will receive maximum 3% of purchase price.

Purchase price must be below the limits for Miami-Dade or Broward County

• Target Area: $621,000
• Non-Target Area: $496,800

Miami-Dade & Broward Target Area Census Tracts:https://www.huduser.gov/portal/qct/1statetable.html?statefp=12.0&DDAYEAR=2024

Census Tract locator:https://geomap.ffiec.gov/ffiecgeomap/

Dade County Federal Credit Union must be the 1st mortgage lender.

• Combined Loan to Value (CLTV) does not exceed 105 percent of the purchase price including all mortgages and down payment assistance. Maximum CLTV is based on loan product:

  • Conventional may not exceed 105% CLTV.
  • FHA may not exceed 96.50% CLTV.
  • VA may not exceed 100% CLTV.

• Fixed rate mortgages only.

• Borrower(s) must have a minimum of 1% of the purchase price from their own funds for the down payment.

• DCFCU HPA approval is dependent on first mortgage lender approving first mortgage.

+ Loan Terms:

• HPA is a second mortgage.
• Interest Rate 0%
• No Payments Required
• 30-year deferred mortgage, with possible forgiveness in the seventh year if borrowers continue residing as owner-occupants with homestead exemption on property for six continuous years.
• The second mortgage becomes due and payable upon sale of the property, refinancing of the first mortgage, applying for a new second mortgage, transfer of deed, death of all borrowers, if the borrower no longer occupies the property as his/her primary residence, or homestead exemption is removed.