Palm Bay HOME Down Payment Assistance Program

The City of Palm Bay in Florida recognizes that many first-time homebuyers need help paying initial, upfront costs in a mortgage transaction. That’s why the City established the HOME Down Payment Assistance Program, which is designed to help income-eligible applicants with down payment and closing cost assistance to purchase their first home, and rehabilitation, if needed. Priority is given to “very low-income” and “low-income” families.

Available Assistance
Under the HOME Down Payment Assistance Program, households earning less than 50 percent of the area median income (AMI) are considered very low-income and can receive up to $17,881.50 in total assistance. A minimum of $10,881.50 must be put toward the down payment and closing costs, and the remaining $7,000 can also be directed toward the down payment and closing costs or, if needed, be spent on assistance for code-related rehabilitation work on the house.

This assistance comes in the form of a deferred, multi-year loan forgiven at the end of the applicable affordability period. The amount does not need to be repaid as long as the home is owner-occupied and the title is not transferred. 

Eligibility Requirements
The HOME Down Payment Assistance Program grants only first-time homebuyers eligibility; any person who has owned a home in the last three years cannot qualify for assistance. Applicants must also be creditworthy (no bankruptcies, judgments, repossessions, or charge-offs), and must have secured a first mortgage (conventional, FHA, or VA loans are acceptable). They are also required to complete a homebuyer education course and fall within the program’s stated income limits (shown below). A minimum contribution is also required of each homebuyer, the amount of which depends on their income bracket (Very low-income: $750; low-income: $1,250).

Income Limits
Household income is defined as all income received by household members (18 years or older) who will be living in the home, even if they are not on the mortgage.

1 person household: $33,000
2 person household: $37,700
3 person household: $42,400
4 person household: $47,100
5 person household: $50,900
6 person household: $54,650

Households earning a total annual income between 50 and 80 percent of the AMI fall in the low-income bracket of the program, and receive up to $12,881.50 in assistance funds. $7,881.50 of this must go toward paying the down payment and closing costs, while the rest ($5,000) can be put toward rehabilitation if needed.

(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)