Neighborhood Redevelopment Down-payment Assistance

What is Neighborhood Redevelopment Down-payment Assistance?

Neighborhood Redevelopment Down-payment Assistance is a forgivable loan for homebuyers in Florence, South Carolina.

• City of Florence Community Services down-payment and closing-cost assistance for low- to moderate-income buyers purchasing newly constructed homes built by the City throughout the North, Northwest, and East Florence redevelopment neighborhoods. Assistance amount is determined case-by-case depending on the home purchased and is structured as a 15-year deferred, forgivable second mortgage. The City also pays a 4% realtor commission on behalf of the buyer. Pro-rated repayment is owed if the home is sold or no longer owner-occupied within the 15-year affordability period.
• Down-payment and closing-cost assistance toward the purchase of newly constructed City of Florence homes built in North, Northwest, and East Florence under the Neighborhood Redevelopment program. Amount of assistance varies and is provided on a case-by-case basis depending on the home purchased. Assistance is a 15-year deferred, forgivable second mortgage. The City pays a 4% realtor's fee on behalf of the buyer. No monthly payments. Fully forgiven at the 15-year anniversary if owner-occupancy is maintained.
• Funding comes from City of Florence Neighborhood Redevelopment funds; CDBG and local funds; HUD Federal/Local.

Do you have to pay it back?

Neighborhood Redevelopment Down-payment Assistance is forgiven after 15 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale of home, transfer of title, or failure to maintain the property as primary residence within the 15-year term triggers pro-rated repayment of the unforgiven balance to the City. After 15 years the lien is released.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Neighborhood Redevelopment Down-payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Neighborhood Redevelopment Down-payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

• Household income must be within the City of Florence eligible range, approximately 80% AMI for Florence, SC: 1p $39,350; 2p $44,950; 3p $50,550; 4p $56,150; 5p $60,650; 6p $65,150; 7p $69,650; 8p $74,200. All income sources counted.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Neighborhood Redevelopment Down-payment Assistance caps the purchase price as follows: Limited by the sale price of City of Florence-constructed homes in the redevelopment areas.

• Eligible property types include Newly constructed single-family home built by the City of Florence in the North/Northwest/East Florence redevelopment neighborhoods.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Neighborhood Redevelopment Down-payment Assistance serves buyers purchasing in Florence, South Carolina.

• The program targets specific areas: Neighborhood Redevelopment areas in North Florence, Northwest Florence, and East Florence where the City of Florence is constructing new infill homes.

How do you apply?

Applications for Neighborhood Redevelopment Down-payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Buyer must complete a homebuyer education class..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Applications submitted to City of Florence Community Services on a first-come, first-served basis; $25 nonrefundable application fee., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.