Florida Housing Bond Program

The U.S Congress in Florida introduced the housing bonds that were also known as the Mortgage Revenue Bonds (MRB’s).

These bonds were introduced by the Congress, but the bond programs were all formulated by the county, regional, state or city government bodies. These government units are in turn managed by the volunteer boards.
Florida Housing Bond Programs have been authorized by the Congress. Owing to the fact that these bonds are tax-exempt, most of the program rules and regulations are decided by the IRS. The Florida Housing Finance Corporation sets up a pool of funds. This finance pool allows the purchase of mortgages by the local lenders.

Salient Points

* There are certain salient points that define the Florida Housing Bond Program. These points can be explained as below:-
* It is a first mortgage or housing bond program, that simultaneously renders help in housing opportunities. The work sheet of your company should not be used.
* Assistance, terms, rates, and points are all monitored by Florida Housing.
* A basic homebuyer’s education is must.
* The program sets some income limits.
* The program will require the record of past three year’s tax returns for all borrowers.
* The property needs to be eligible for the program .Property eligibility categories as well as limits in sales price exist.
* The prospective purchasers need to occupy the property within 60 days of closing.
* There are times when people thought these housing bond programs to be similar to the other state housing bond programs. But the Florida Housing Bond Program is one of its kinds that provide closing cost support.
* The borrower needs to satisfy terms and conditions related to credit underwriting and other bond program rules and regulations.

Florida Housing Bond Program – Myths

There are certain myths that are attached with the housing bond programs in Florida. Some of these myths are stated below:-
* Bond Programs always force the buyers to reside in a dwelling for a period of 9 years.
* Bond Programs are another form of down payment assistance programs.
* Bond Programs retards the closing process.
* Florida Housing Bond Programs are meant for the purchasers with poor monetary abilities.
* Bond Programs is targeted purely at the low-income buyers.
* Bond Programs is a sub-prime product.

Benefits of the Florida Housing Bond Program

There are certain benefits that the buyers enjoy under the housing bond programs. Some of them are given below:-
* An eligible buyer can always assume a first mortgage.
* The buyers are not required to pay intangible tax or doc stamp on the mortgage and other related notes.
* The buyers need to utilize all the assets available.
* The co-signers are approved in FHA transaction

Florida Housing Bond Program – Timelines

There is a timeline that needs to be adhered to in terms of loan purchase, process and the delivery. The schedule is given below:-

* Loan Purchase, Processing and Delivery Schedule
* Reservation to Underwriter Certification takes almost 45 days.
* Reservation to house closing and delivery of property documents takes about 80 days.
* Reservations to loans purchased and exceptions cleared take a span of 115 days.
* Any new construction needs to be inhabited within 45 days prior to closing. It is during this time that the loan would shift to first or second mortgage allocation.

Florida Housing Bond Program – Procedure

The Florida Housing Bond Program follows a certain procedure that is elucidated below:-
* The lender finds an eligible buyer for the program, and takes a regular loan application. He also receives three year federal income tax returns.
* The buyer signs a two page document named “Notices to Buyer”. The borrower signs up for homebuyer education training.
* The borrower finds and shortlists a property, and also possesses a signed real estate contract.
* The lender receives the full and final approved contract documents under the program, in the name of the buyer.
* The lender gets the loan processed normally.

Post the underwriting approval, the underwriter is required to complete the Underwriter Certification that is available online. The underwriter gets a span of 45 days to finish the certification, failing which the loan gets cancelled automatically.

Loan procedure might close down depending on various factors.

* The lender provides monetary aid for the first mortgage and for any other second mortgage or program support.
* The lender transfers the loan to the United States Bank and in the process clear any or all exceptions in time.
*The United States Bank finances the first mortgage.