State Program to Finance $100M in Florida Home Loans For Lower- and Middle-Income Residents

Make no mistake about it, Florida is in the midst of an affordable housing crisis. But the state and local governments are addressing the matter.

For example, Florida Housing Finance Corp. has made $100 million in home mortgage loans available to low- to moderate-income Florida residents through the First Time Homebuyer Program. The money is available in 30-year, fixed-rate form, at 5.75 percent, and in 13 counties, including Brevard County, residents will be eligible for a special 5.5 percent rate.

The First Time Homebuyer Program traditionally has made its low-interest Florida home loans available to first-time buyers only, but this requirement has been waived in 13 counties affected by recent hurricanes. The other 12 counties include Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach and St. Lucie.

Mortgage industry giant Freddie Mac has agreed to buy $25 million of bonds at 25 basis points through the market, which will subsidize the rates for the Florida home loan applicants in those 13 counties. Florida Housing’s First Time Homebuyer program has provided more than 1,100 mortgages across the state, totaling close to $119 million in 2005.