First-Time Homebuyer Program
First Time Homebuyer program provides zero percent (0%) deferred loans to
first-time homebuyers purchasing a property in the City of Miami. The buyer
selects their own eligible property to purchase and meets with one of the
to be pre-qualified for a mortgage loan. The
City of Miami underwrites the loan based on the
first mortgage lender's commitment. The City
only accepts applications from participating
lenders and they are processed on a first-come, first-ready, first-serve
basis. Please refer to our Frequently Asked Questions section for more
the First-Time Homebuyer Program
Residences; townhomes, condominiums
Property must be located
in the City of Miami;
Property must meet
Housing Quality Standards as per 24 CFR
- Must not have owned a
home in the past 3 years;
- Household income less
than or equal to 80% of the area median
income adjusted for family size.
Must be able to afford a
monthly payment based on income and
Must contribute at least
$500 of personal funds towards down
payment / closing costs.
Maximum Sales Price:
$235,000 for exisiting and/or new homes
Amount of Assistance: Varies based
on the number of bedrooms of the
home being purchased,
and the financing needs of the
The current Maximum limits as
determined by U.S. HUD under the
Basic Statutory Mortgage Limits
(Sec. 221 (d)(3) and 234, Federal
Register), are listed in the chart
The loan will be secured by a second mortgage on the property.
First Mortgage Restrictions:
Term of the loan must be 30 years; fixed interest rate & cannot
exceed more than 150 basis points over
Freddie Mac's weekly average 30-year
rate, as published in the
Primary Mortgage Market Survey ("PMMS");
no prepayment penalties; Total
percentage charged for Discount,
Origination & Broker fees must not
exceed 2 points; all other lending fees
must be reasonable and cannot exceed
$500 or 0.5% of the loan amount,
whichever is greater.
Applicant must reside in purchased unit at all times.
If the owner sells and/ or transfer the
house before the end of the City's
mortgage term, the following provisions
1. The borrower will be required to repay the
original amount given as assistance.
sale or transfer, the City shall share
in any gain
realized, based on its pro-rated share
of participation in the original
purchase. Furthermore, if the sale
occurs within the first 3 years, the
City shall keep 100% of its pro-rated
share of the "gain",
from year 3 up to year 20, the City's
share of its pro-rated "gain"
shall decrease by 5% every year, while
in turn, the owner's
share shall increase by 5% each year. At
year 20 up to the City's
loan maturity, the owner shall retain
100% of the City's gain'.
This above share gain proposal terminates in the event of a
foreclosure, with the lender
required to provide the City the
right of first refusal to purchase
the loan at a negotiated price. In
the case of a foreclosure, the City
will recapture any amount of net
proceeds available for the sale of
How Do I Get Started?
Pick up an application for the First-Time Homebuyer Program at the Department of
Community Development or at any of the City's Neighborhood Enhancement Team
Gather all documents listed in the
"First-Time Checklist", under the header
"Provided by Homeowner."
Attend an approved Homebuyer Counseling workshop.
Contact a participating lender to obtain a loan commitment and to
be pre-qualified for a mortgage loan,
subject to the City's down payment amount.
Search for a home in the City of Miami based on your pre-approved loan amount
and within the maximum sales price limit.
Have your lender provide you with a full mortgage commitment.
Fill out the
First-time Homebuyer Program application, include all proper
documentation, and submit them to your lender. Have your lender submit your loan
package to the City.
For more information,
regarding our First-Time Homebuyer Program, please call (305) 416-1927