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The Hometown Heroes Program recently made some exciting changes in July 2023 for Florida residence. Check out our blog post on the changes, here.

Q. Do borrower(s) have to qualify with an eligible occupation?
A. No. Effective with all reservations made on or after July 1, the former occupational requirement will
no longer apply.

Q. Will borrower(s) qualify with 35 hours a week if the VOE only confirms full-time status?
A. No. Borrower(s) must work 35 hours or more a week to qualify. Lenders will need to obtain a VOE
or paystubs that reflect 35 hours or more a week.

Q. What documentation is required to confirm a borrower’s employer is a FL based company?
A. Borrowers that work at a brick and mortar location of employer can confirm with the Employer
Address located on page 1 of the 1003.

Borrowers that work from home can confirm employer is a FL based business through the FL
Division of Corporations @ www.sunbiz.org IF employer’s registration reflects a Principal
Address located in FL

Self-Employed borrowers can provide a copy of their 1099 validating contracted employer is a
FL based company if 1099 reflects the Payer’s company name and address is located in FL.

Self-Employed borrowers that file a Schedule C can confirm a FL based company if the
Schedule C reflects a proprietor’s business address located in FL.

Q. What is the DTI for HTH?
A. Max DTI 50% Manufactured Housing Max DTI 45%
Manual underwriting Max DTI 43% (FHA, Fannie Mae and Freddie ONLY)

Q. Does the borrower have to use any reserves for down payment since other programs that
provide down payment require?

A. No. FL Housing does not require an asset test.

Q. Do you have to use all of the second mortgage funds if they are not needed?
A. Lenders should use the entire amount of eligible subsidy. The eHousing reservation system will
auto calculate 5% of the total loan amount for the HTH Second Mortgage. The HTH Second is
0%, non-amortizing, deferred second mortgage.

Q. Do Veterans still qualify as first time buyers under the new HTH Program?
A. Yes. Veterans that provide a valid DD214 with a discharge status of other than dishonorable can

Q. Do active military personnel or members of the reserves still qualify as a first time buyer
under the new HTH Program?

A. If utilizing the BOND HTH Program, active military personnel and Reserve members must qualify
as a first time buyer by providing the last three years’ tax returns or transcripts (or a
combination of the two) or a VOR or copy of lease.
If using the TBA HTH Program, active military personnel and Reserve members would qualify
as a first time buyer when they provide a copy of their LES or SCRA.

Q. Do you allow originators to participate in HTH if they are located in another state?
A. No. Originators must have a primary residence in FL in order to participate.

Q. How do you confirm a self-employed borrower is working 35 or more hours a week?
A. Obtain a copy of most recent paystubs (4-6 weeks) or a copy of work schedule or copy of contract
validating 35 hours or more a week.

Q. Can a buyer who is retired qualify for HTH?
A. Other than veterans, all borrowers must currently work 35 hours or more a week to qualify.

Q. Does the HTH Program consider household income?
A. Yes and no.
YES. If using the BOND HTH Program, the household income is considered. The gross,
annual income of all occupants aged 18 and older must be considered in the household
Co-signor income is not considered in the household income since co-signors will not
be a member of the household; they will not occupy the property.

NO. If using the TBA HTH Program, the AUS income is considered. Co-signor income would
be considered in qualify since co-signor income is considered in the AUS approval.

Q. Does the HTH Program require three years’ tax returns to validate first time buyer status?
A. Yes and no.
Yes. If using the BOND HTH Program, all borrowers (including the spouse even if not on the
loan) must provide confirmation of first time eligibility through their last three years’ tax returns
or transcripts (or a combination of the two) or a VOR or copy of lease.

No. If using the TBA HTH Program, the borrowers must complete the Declarations Section of
the 1003 accordingly.

Q. Does FL Housing allow co-signors for HTH?
A. Co-signors are permitted with FHA and Fannie Mae’s HFA Preferred only.
Co-signors income will NOT be considered in household income for the BOND HTH Program
since they do not occupy the property.
Co-signor income IS considered in the TBA HTH Program since co-signor income is
considered in the AUS approval.

Q. If my borrower(s) income exceeds the 80% AMI limits on a CONV HFA Preferred or HFA
Advantage loan does that mean my borrower(s) does not qualify for HTH?
A. No. The 80% AMI income limits determine if a borrower(s) is eligible for reduced cost mortgage
insurance. Refer to the HTH income limits to determine borrower(s) meet income limits for

Q. Why are there separate rates for the 80% and below AMI and the above 80% AMI
conventional products?

A. Borrower(s) that have income that is at or below Fannie Mae and Freddie Mac’s 80% AMI limits
(which are used in determining borrower’s eligibility for reduced rate mortgage insurance),
would qualify for charter MI coverage AND a lower first mortgage rate.
Borrower(s) income that exceeds 80% AMI would receive standard MI and a higher first
mortgage rate. Remember: lower AMI (80% AMI or below) = lower first mortgage rate and
lower MI costs. Higher AMI (80% AMI and above) = higher first mortgage rate and higher MI

Q. Is Manufactured Housing permitted in HTH?
A. Yes, but only for VA, FHA and Fannie Mae’s HFA Preferred. Please see the Manufactured
Housing Cheat Sheet
for more info.

Q. What is the max CLTV for HTH?
A. FHA and VA do not have a max CLTV when using down payment assistance from a governmental
entity like FL Housing. Fannie Mae and Freddie Mac have a max 105% CLTV. For max CLTV
on USDA RD, refer to USDA-RD’s maximum CLTV requirements.

Q. Can borrower(s) receive their EMD back at closing?
A. NO. The only cash back permitted to borrower(s) would be any funds that were provided as gift
funds. Be sure to obtain a copy of gift letter. Otherwise, any cash back of $1,000.00 or less
should be applied as a principal reduction to the first mortgage. Any cash back exceeding
$1,000.00 should be applied to the loan amount to reduce the borrower’s monthly housing

Q. Is the 203k or 203ks permitted in HTH?
A. The standard 203k is not permitted but the streamline 203 is permitted.

Q. Do all borrower(s) have to attend homebuyer education in the HTH Program?
A. Only one borrower must attend homebuyer education. Currently, FL Housing Homebuyer Loan
Program Staff recommend Home View which is sponsored by Fannie Mae, it is available
online and it’s free.

Q. What are the fees for HTH?
A. First mortgage loans originated under the HTH Program allow lender to charge their usual and
customary origination fees but are NOT permitted to charge a 1% Origination. The HTH First
Mortgage Fees are:
$400 Investor Funding Fee (payable to Master Servicer)
$275 Compliance Fee (payable to eHousing)
$75 Tax Service Fee (payable to Master Servicer)
$10 Flood Certification Transfer Fee (payable to Master Servicer)
The HTH Second Mortgage allows a recording fee only. No other fees are permitted.

Q. If a borrower(s) no longer occupies the property and chooses to rent out the property, is
the HTH Second Mortgage required to be repaid?

A. Yes, the HTH Second Mortgage is required to be repaid, in full, upon the sale, refinance, transfer
of deed, payoff of the first mortgage or if the borrower(s) no longer occupy the property as their
primary. A demand letter would be issued to the borrower(s) if any of the above occur.

Q. Can the HTH Second Mortgage be used to bridge the gap between the purchase price and
the appraised value?

A. No. FL Housing down payment funds cannot be used to bridge the gap between the purchase
price and the appraise value and cannot be used to pay off borrower(s) debt. It also cannot be
used to pay broker fees.

Q. Does the HTH Program allow down payment funds from another agency?
A. Yes, as long as agency providing the down payment funds take third lien position.

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