Registered Mortgage Lender Guide

1. Program Highlights

• Assistance is provided in the form of a deferred loan, with a 0% interest rate, and secured by a recorded mortgage and note
• Assistance is forgiven after a ten-year (10) period of affordability
• The loan will become due and payable if the property is sold, rented, ceases to be owner-occupied, or the home is refinanced for cash-out or debt consolidation during the affordability period 
• Funds can be used for down payment, closing costs, reserves, prepaid items and principal mortgage reduction in association with the purchase of a home
• This process may take up to 30 days before a closing date can be scheduled
• All mortgage financing must be arm’s length transactions
• Excessive origination fees or junk fees will not be accepted
• Down payment assistance cannot be used to buy down interest rate (discount or points)
• Interest rates in excess of two (2) points above market will not be accepted
• Origination fees will be limited to one (1) percent to include document preparation, underwriting, processing, administrative, funding, etc.
• Seller will pay all closing costs that sellers in the area typically incur (i.e. owner’s title insurance, document stamps on the deed, builder’s warranty)

2. Mortgage Lenders and Brokers

• Being the point of contact with City of Orlando for the applicant
• Determining the applicant’s eligibility to the Program (including income and household composition 
• Submitting the necessary information and forms to City of Orlando
• Coordinating the closing with title companies and other partners
• Assisting City of Orlando in maintaining the integrity of the program and services

3. Property Eligibility

• The property must be located within City of Orlando limits.
• New or existing single-family homes, townhouses and condominiums are eligible. Mobile Homes and trailers are not eligible.
• The sales price must not exceed 90% of the median area purchase price established by the U.S. Treasury Department (Maximum sales price is $481,176.00).
• Tenant-occupied properties are not eligible.
• The property must have a useful life expectancy of at least 30 years.

4. Assistance Levels

The amount of assistance is based on the applicant's gross household income and need. For example:

5. Borrower Eligibility Requirements

Housing Counseling Agencies

Before your homebuyer can apply for the city's Down Payment Assistance Program, the homebuyer (borrower) and co-applicant are required to attend a pre-purchase homebuyer education workshop conducted by a HUD-approved housing counseling agency.

Find a Housing Counseling Agency

Eligibility Exceptions

The borrower must be a first-time homebuyer (not owned a home in the past three (3) years. Some exceptions are:

• Displaced homemaker
• Single parent
• Displaced homeowner from or future resident in the Parramore Heritage Overlay District
• City of Orlando employee
• Teacher/school administrator
• Public safety personnel

Income Eligibility

The borrower's total household income must not exceed 2024 Income Eligibility Limits. Visit our Income Eligibility Limits page for details.

Other eligibility requirements

• The applicant must have established residency for the last 12 consecutive months in Orange, Osceola, Lake, Polk, Seminole, Volusia or Brevard Counties.
• The applicant must be able to obtain a loan commitment for a first mortgage, with a fixed rate, from a City of Orlando registered lender.  The City does not require debt-to-income ratios or a particular credit score for eligibility.
• The applicant must provide a minimum of $1,000 of their own funds for earnest money deposit ($500 for a Low or Very Low Income applicant).
• Borrowers and Co-borrowers must reside in the property being purchased for a minimum of 10 years during the affordability period of the loan.
• The total amount of liquid assets for the applicant(s) and all household members combined cannot exceed $30,000 (excluding the funds being used in the transaction). Liquid assets are assets that are easily converted into cash without the loss of the initial investment. Retirement assets including workplace IRAs; 401K, 403(b), 457 or 529 accounts; or other similar accounts restricted for retirement usage are not treated as liquid assets for this purpose. 

   

6. Summary

• Missing, incomplete, or unsigned documentation will cause a delay in processing an application.
• Application processing time is dependent upon how many applications are in-house at the time an application is received, and the accuracy of the application and documents received.
• The average processing time is within 30 days from the date an application is received.