First-Time Homeownership Program

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The Delray Beach Homeownership Program was established to provide affordable housing for the first-time homebuyers through the City of Delray Beach.

The goals of the program are to increase:

  • Homeownership opportunities
  • Improve the condition of existing housing units 
  • Contribute to the City's overall neighborhood improvement efforts

Program Features

This program will provide assistance to those who have traditionally been unable to obtain private mortgage loans. The private lender will provide as much of a mortgage loan as the applicant can afford and the City will subsidize the remainder of the purchase price with available grant funds. 

Additional features include:

  • Below market interest rates
  • No more than 1.5% loan origination fees
  • 30-year fixed mortgage rates
  • Homes priced may not exceed 90% of the average area purchase price in the statistical area for new construction and existing properties and may be purchased depending on the buyer's current income and debt
  • Deferred gap financing and closing costs assistance through 0% interest deferred loans held as second mortgages up to $75,000
  • Provision of homebuyer/homeowner education and training to ensure successful homeownership
  • Forgivable no interest loans made for "gap" financing purposes, principal reduction, payment of closing costs
  • Subsidies are provided in the form of a second mortgage for a period of 15 years for loan amounts less than $35,000 and 30 years for loan amounts of $35,000 or more

Buyer Qualifications

  • First-time homebuyer includes displaced homemakers, single parents and families who have not owned a home within 3 years of the date of application for housing assistance
  • New construction properties must be located within the CDBG target area. Existing unit purchases with rehabilitation are Citywide.
  • Must contribute 2% of the total purchase price at time of closing
  • Must meet lender credit standards
  • Total household income must not exceed maximum federal income limits
  • Assets in excess of $35,000 must be decreased through additional homebuyer contribution
  • Housing expenses (PITI) cannot exceed 35% of gross monthly income unless approved by primary