Home Purchase Down Payment and Closing Cost Assistance
(Application cycle – Open)

Mobile homes are not eligible for purchase

Maximum New Home Sales Price: $237,031.20
Maximum Existing Home Sales Price: $237,031.20

There is no “Out of Pocket” Borrower Contribution Requirement

Maximum Assistance—

$40,000.00 for Extremely-low and very-low income

$30,000.00 for Low income

$10,000.00 for Moderate income

SHIP funds will be made available to support down payment and closing costs for the purchase of a single family residence on a one time basis to income eligible homebuyers. Funds may be used to pay all related costs attributable to the purchase of a home including, but not limited to; land, site development, certain infrastructure expenses, materials, labor, permitting, impact fees, and closing costs. The household assisted must secure permanent first mortgage financing and must be certified within the income guideline requirements.

Assistance shall be in the form of an interest free, twenty (20) year, deferred payment loan. Payment is due upon sale or refinance. At the end of twenty (20) years, the loan will be forgiven as long as the home has not been sold, leased or rented during the twenty (20) year period.

Assistance is provided on a first-come, first-qualified, first-serve basis following annual advertisement of the availability of SHIP funds. Applicants must submit a completed SHIP application for determination of income eligibility. SHIP assistance will only be provided for the purchase of homes in Sumter County that will be owner-occupied and used as the primary residence.

Steps to Home Ownership:

• Review the Income Chart to ensure you are below the Total Household Income Guidelines.
• Contact a Bank, Mortgage Broker or Financial Institution and provide them with the information they require to Pre-Approve you for the primary Mortgage. They will provide you with a (GFE) Good Faith Estimate itemizing all closing costs. Examples of types of financing to ask for when talking with your Lender (New Construction Home—FHA C/P (construction/perm) mortgage, Existing Home—FHA Mortgage, USDA Rural Development Mortgage)
• Contact the Housing Department (352) 793-0272 to obtain an Application.
• Once the application is complete you must schedule an appointment with the Housing Department to begin the process of approval.

Lender Requirements

Lender Participation:  Participating lenders must have affordable housing underwriting criteria with guidelines available for review and approval by Sumter County, and must submit a firm loan commitment which clearly contains the dollar amount, the anticipated interest rate, terms and conditions.  Conditional commitments must contain conditions and a good faith estimate.

Lending Parameters:  The interest rate shall not exceed the Federal National Mortgage Association (FNMA) 60-day yield at the time of lock, plus one percent.  The term of the loan shall be a maximum of 30 years (except for USDA and VA loans) with a fixed interest rate. 

Fees:  Total charges to the buyer for the items listed below may not exceed 2% of the loan value:

1. Application fee
2. Appraisal review
                          
3. Closing fee
                           
4. Discount points
                           
5. Origination fee
                           
6. Processing fee
                           
7. Underwriting fee
                           
8. Mortgage broker fee
                           
9. Administrative fee

The maximum allowable fees to the borrower with the exception of PMI, FHA insurance and USDA Rural Development guarantee insurance are listed in the following table: