The City of St. Petersburg has released guidelines for the $8,000 1st Time Home Buyer Tax Credit Bridge Loan. Applications will be accepted on a first ready, first served basis.
Please review the documents through the links provided below, and if you have any additional questions, please contact Tom deYampert or Linda Byars.
Total allocated funds for this loan product is $199,719 or approximately 25 loans at $8,000 per loan.
City of St. Petersburg
Housing & Community Development
Tom deYampert, Manager
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727-893-7615
Linda Byars, Finance Coordinator
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727-892-5572
2009 First Time
Homebuyer
Tax Credit
Bridge Loan
Herein is the City of St. Petersburg’s Working to Improve our W.LN. Lender
Neighborhoods (W.I.N.) First time Homebuyers Tax Credit Bridge & Realtor
Loan Program Notice
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www.stpete.oro
City of St. Petersburg
“Working to Improve our Neighborhoods”
WIN. Lender & Realtor Notice
Florida Housing Opportunity Program (FLHOP)
Federal 1st Time Homebuyers Tax Credit Bridge Loan
Effective August 31, 2009, the City of St. Petersburg’s Housing & Community Development
Department, W.l.N. Program, will begin accepting loan applications from lenders. The
purpose of this program is to allow the applicant to apply their pending tax refund towards
the closing of their new home.
Applications will be accepted on a “FIRST READY, FIRST SERVED” basis. Funding will be
reserved only for those who submit a COMPLETE LOAN PACKAGE for W.l.N. processing.
The city does not control the date of funding. Therefore, no loans will be closed until such
time that funding has been made available from the State of Florida.
• Loan application packages can be submitted as follows:
o As a stand alone request for a bridge loan up to $8,000 or
o As an additional loan up to $8,000 when submitted with a SHIP Homebuyer
Assistance loan application.
• Loan Underwriting Requirements
o Stand Alone Bridge Loan
• The maximum loan amount is $8,000.00 or 10% of the purchase amount
whichever is less.
• Applicant(s) can not have owned real estate as their primary residence in
the past three (3) years preceding the date of closing.
• Applicant(s) “Adjusted Gross Income” as defined on line 37 of their 2008
U.S. Individual Income Tax Return can not exceed $75,000 for a single
filer or $150,000 for a joint return.
• Applicant(s) cannot have any outstanding liens that have any impact on
receiving the tax credit.
• The maximum purchase price is $215,555 and the maximum borrower
backend debt ratio cannot exceed 41%.
• Applicant(s) must submit a completed IRS Form 1040X Amended U.S.
Individual Income Tax Return and the associated IRS Form 5405 (Rev. 2-
2009) First-Time Homebuyer Credit for homes purchased between
January 1, 2009 and December 1, 2009.
• All proceeds from this Bridge Loan must be applied to the home purchase
reflected on the HUD 1 Closing Statement and the borrower(s) can not
receive any cash at the closing.
• All other state and federal rules as related to the First-Time Homebuyer
Tax Credit and the State of Florida FLHOP apply.
• Lenders must submit 2006, 2007 & 2008 IRS Form 1040 U.S. Individual
Income Tax Returns along with their complete loan underwriting package
including the lender’s commitment letter.
o Bridge Loan Accompanied with SHIP Homebuyer Assistance Loan
• All underwriting requirements associated with the Stand Alone Bridge
Loan apply with the exception of “INCOME QUALIFICATIONS”.
• Income Qualifications
• Household Median Income (MI) adjusted for family size cannot
exceed 120%.
• All standard W.I.N. Homebuyer Assistance Loan underwriting
requirements apply.
• Terms of W.I.N. FLHOP Bridge Loan
o At closing applicant(s) must submit a completed and signed IRS Form 2008
1040X and the IRS Form 5405 which the title agent will mail to the IRS returnreceipt
requested.
o The intent of this loan is to provide the applicant(s) a bridge loan to reduce
the principal loan amount of their first mortgage andlor pay closing costs.
The bridge loan can also be used to buy down the interest rate of the first
mortgage.
o The interest rate is equal to the interest rate charged by the applicant(s) first
mortgage lender.
o For a period not to exceed 10 days following receipt of the applicant(s) tax
credit refund or 18 months from the date of closing, whichever occurs first.
All interest will be waived if paid within this time frame.
o The loan can be pre-paid at any time. The borrower must document receipt of the
tax refund via copy of the IRS check and or bank statement showing deposit of
tax refund.
o The first mandated loan payment begins 36 months from the date of closing with
all accrued interest and principal being paid back in 24 equal monthly
installments. (See example below.)
Original Loan Amount $8,000.00
1st Mortgage mt. Rate 6.00%
IRS Refund received 3 months following date of closing
Borrower(s) elect to defer repayment for 36 months
Loan Balance when payment begin
Principal $8,000.00
Accrued Interest for 33 mo. $1,431.27
Total accrued Principal and Interest $9,431.27
Payments begin on the 37th mo. after closing for a $418.00 per mo.
period of 24 mos. @ 6% interest
