Margate FIRST TIME HOMEBUYER ASSISTANCE PROGRAM

Summary

The Margate CRA First-Time Homebuyer Assistance Program is open to all employees of the City of Margate, the Broward County Board of County Commissioners and the North Broward Hospital District.  The program will provide down-payment assistance to approximately twenty (30) income-eligible employees to purchase properties within the Margate Community Redevelopment Area.  Only single family properties are eligible for purchase under this program.  Bank-owned foreclosures will be eligible for an additional allocation of funding for needed repairs.
If there are not enough applicants after the initial outreach to City, County and Hospital employees, funding will be then made available to employees of businesses within the Margate Community Redevelopment Area.  If there is still funding available after this outreach, then the program will open to the public at large until all funding is expended.

This program will be administered on behalf of the Margate CRA by the City of Margate Grants Office.The Grants office may be reached by phone at (954) 973-0300.

MAP OF CRA AREA - Eligible Homes

Eligibility and Income Limits
This program is open to those applicants who are first time homebuyers (defined as not having owned a home within the last three (3) years) whose total household income falls within 80% to 120% of the median family income (adjusted for family size) for the Fort Lauderdale Metropolitan Statistical Area.  For 2009, the limits are as follows:

Applicants must have a 3% down payment on the property.  Grant funds from this program cannot be used to fulfill this requirement. Applicants must occupy the property full-time.  Assistance is not available for part-time residents or for investment purposes. 

Amount and Type of Assistance

Assistance will be provided in the form of a deferred payment loan of up to $7,000.00 per household, a conditional grant that involves a lien on the purchased property.  Additional loan amounts of up to $3,000.00 will be made available to those households purchasing bank-owned foreclosure properties for needed repairs.  Program staff will have final approval over needed repairs, and homeowners will be required to submit three quotes from qualified, licensed contractors before proceeding with repairs, and will be required to sign a separate deferred payment load agreement for these funds.  Appliances will not be eligible for purchase under this program. 
All loans will have a seven (7) year term.  During the term, no payments are required and no interest will accrue.  The amount due will decrease in equal amounts during the seven year term of the loan on a calendar year basis.  Payment will be required under the following circumstances:

• Sale of property or transfer of ownership
• No longer owner-occupied (i.e., property is rented)
• Refinancing for equity (“cash out”)
• Failure to maintain the property within reasonable standards of care and maintenance

Repayment is not required if property is refinanced for a lower interest rate with no removal of equity (closing costs may be included, but the interest rate reduction must represent a considerable savings).  Repayment is also not required if a sole owner dies, or if both/all owners die before the end of the seven year term.

Loan Application Process and Approval

Application Form:  The application form constitutes the main source of information to evaluate the applicant.  In addition to the application form, the applicant must also bring the following documents to the initial appointment: Print Application Form
1.         Proof of prequalification for a mortgage bringing a prequalification letter from a mortgage lender that is on the CRA's list of pre-approved lenders
2.         Proof of number of dependents claimed  by bringing the most current Federal Income Tax Return and one of the following, as applicable:
Most recent signed Federal Income Tax Return and one of the following:

• Copy of birth certificates with printed parents/applicant name
• School record(s) with parent(s)/applicant name and address
• Guardianship/Adoption letter from Court or other legal entity
• Divorce Decree showing award of children
• Social Security Cards for all dependents

3.         Proof of child support payments.       If court ordered, then provide State/County file number.
4.         Two consecutive months of bank statements for checking, savings and other asset accounts.
5.         Two consecutive pay stubs from all working household members.
6.         If self-employed, Federal Income Tax Return copies, including Profit and Loss statements for the last two years..

• State issued picture I.D. or passport for all household members age 18 or over.

Additional documentation may be required as we process your application.

SATISFACTION OF MORTGAGE/Release of lien

The Margate Community Redevelopment Agency will be responsible for sending each satisfaction of mortgage or release of a lien to Broward County for recording. The homeowner will be responsible to pay all applicable recording cost of said satisfaction of mortgage or release of lien.  Acceptable payment will include; money order, cashier’s check, or Title Company or Law Firm check made payable to the MCRA.  No satisfaction of mortgage or release of lien shall be processed until payment of the loan has been cleared by the MCRA office or the seven year expiration of the lien has been verified by Program Staff.