State Housing Initiatives Partnership
2009 SHIP Annual Report
SHIP 3-year Local Housing Assistance Plan 2007-2010
Request for Proposals - Reservation of Funds
New - Affordable Housing Advisory Committee Draft Recommendations
The City of Ocala is working with area lenders, builders, non-profit groups and real estate agents by offering State funds for down payment and closing cost assistance for first-time homebuyers. Limited funds are available for very low and low-income households who are constructing new, or purchasing an existing rehabilitated affordable home, in the City limits.
What is available?
Up to $30,000 for very low-income and up to $20,000 for low-income households in down payment and closing cost assistance is available for purchase of newly constructed homes, or existing homes that have been or will be rehabilitated. An additional $5,000 of assistance is available if you choose a house in a focus area. (Map of focus area). Homes must be located inside the Ocala City limits. See a City limit Map. See How SHIP works to see how SHIP funds are used to help you buy a house.
For new homes, you pick out your own builder and lot. Maximum house and lot price is $174,000. An additional $15,000 in purchase assistance is available through the Ocala-Marion County HOME Consortium for new construction in areas served by central water & sewer.
For existing homes, purchase assistance is only eligible with rehabilitation. Rehabilitation is defined as housing improvements needed for safe or sanitary habitation, correction of substantial code violations, or the creation of additional living space. An example of eligible repairs would be re-roofing. The City must verify that repairs meet these guidelines. Rehabilitation must be conducted no more than 12 months prior to or 12 months subsequent to the purchase date. If you borrow funds for after-purchase repairs, purchase mortgage financing and rehabilitation project financing must be combined. For your protection, and before SHIP funds are committed, the applicant must have the house inspected by an independent home inspector. SHIP funds are not used for the rehabilitation costs. See SHIP repairs for more information. Maximum existing house and lot price, is $154,000.
Who is eligible?
Income: Households with total household income at or below 80% of the median income for this area are eligible. This amount varies according to household size. The maximum gross income for a low-income family of four, for example, is $35,900.
Maximum income for very low-income assistance is about $21,000, depending on the number of people in the household.
Type of House: The house and lot must be affordable to the household, with the household paying no more than 30% of their total income for house payments. House payments including principal, interest, taxes and insurance (PITI) are averaging $500 to $700 a month.
SHIP funds cannot be used to purchase or rehabilitate mobile homes. Applicants for down payment and closing cost assistance cannot already own a home.
Mortgage Eligibility:
Households obtain a mortgage loan from a lender of their choice. City staff can help direct you to participating lenders and builders. Generally, lenders require the following to consider you for a mortgage loan:
- Good credit: Mortgage lenders require no outstanding unpaid judgments, past-dues or collections and one year satisfactory credit history. We will help refer you to Consumer Credit Counseling Service to straighten out any credit problems.
- Total debt (including your proposed house payment) cannot exceed 41% of your total income.
- You should be employed in the same profession or field for one year and have verifiable income.
Not all mortgage-related costs are covered by SHIP. Buyers will need at least $500 in up-front costs.
The City provides pre-home ownership classes which you attend before receiving SHIP funds, covering subjects such as selecting a lender, the mortgage loan, the closing process, the house contract and credit management.
Distribution of Funds:
Funds are available on a first-come, first-served basis based on the date of your approval by the mortgage lender and the City's subsequent commitment letter. Commitment of SHIP funds is dependent on the mortgage approval, a purchase contract, and approval by City SHIP of the construction involved (new construction or rehabilitation). SHIP funds in all cases are available without discrimination as to race, creed, color, age, sex, familial status, handicap, religion or national origin.
The SHIP funds are provided as a no-interest loan, forgiven at 10% a year for ten years. If you sell or rent the house in the 10-year period, you must repay the City the SHIP funds still outstanding.
How to apply:
Call, write or come to the City's Community Programs Department for more information. If you're interested in applying, appointments are recommended so we can assist you in filling out the application.
Please contact Community Programs for more information!
:: SHIP Links of Interest ::