Program helps first time homebuyers

PENSACOLA, Fla. (WALA) - The City of Pensacola is offering select home buyers help owning their first homes.

The First-Time Homebuyer Program will assist eligible income-qualified families by providing down payment and closing cost assistance of up to $10,000 in the form of a forgivable loan. Homes purchased must be located within the Pensacola city limits and must have been built after January 1, 1978. The maximum purchase price cannot exceed $189,000.

Buyers must meet specific criteria to apply, including but not limited to:

• Buyer cannot have owned a home or have had ownership interest in property in the last 3 years;
• Buyer must either be a resident or employed in Escambia County for at least 6 months prior to application;
• Buyer must attend a free, HUD certified homebuyer education class prior to closing;
• Buyer must attend a free post-purchase certified foreclosure prevention class;
• Buyer's gross household income cannot exceed 80% of the area median income, adjusted for family size;
• Buyer must have sufficient income and credit to obtain financing approval from the lender to purchase the home and support the primary mortgage amount; debt to income ratio must be within the accepted range.

Interested lenders must also meet certain qualifications, including but not limited to:

• Lender must have a staffed local branch office located in Escambia County;
• Lender's rate and loan requirements must meet FNMA and FHA requirements and comply with FDIC's Statement on Subprime Mortgage Lending;
• Lender must have an active license registered with the State Office of Financial Regulation. The primary lender will be responsible for analyzing each loan application to determine that the applicant is a suitable borrower.

To learn more about Pensacola's First-Time Homebuyer Program, interested local mortgage lenders and homebuyers may contact Mr. Jimmie McFall at the City of Pensacola's Housing Office at 850-858-0350, or via email at jmcfall@cityofpensacola.com .