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Lender Coalition

Purchase Assistance Loan Program

The City of St. Petersburg is offering down payment and closing cost assistance second mortgage loans to eligible home buyers whose household income does not exceed 120% of Median Family Income (MFI) according to the 2016 Income Matrix. Federal Home Investment Partnership Program (HOME) will provide the funding to those at 80% MFI and Florida State Initiatives Partnership (SHIP) Program will provide the funding to those at 120% MFI as long as funding will allow.  A private sector home inspection is highly recommended and a city of St. Petersburg Housing Rehabilitation Officer will review the inspection to ensure compliance with the city's code of ordinances as it applies to health and safety of the unit. Should there not be a private sector property inspection, a city Rehabilitation Officer will physically inspect the property for compliance to city code only. A home built prior to 1960 will require a historical property review, which is completed by the State of Florida. If a home was built prior to 1978, a lead inspection may be required if there is evidence that lead may be present. 

To allow sufficient time for the in-house inspection and the historical property review, the Housing and Community Development Department will accept applications that may not include all documentation listed on the tracking sheet. We ask that enough information be submitted to provide for determination of income eligibility. The appraisal, home inspection, third party verifications, etc. may be delayed.  Bank statements, pay-stubs, credit report and other income related documentation to determine eligibility should be submitted to determine eligibility, which may result in a conditional commitment for funding.

Individual loans, not exceeding $20,000, shall be made available to eligible first-time home buyers. The loan amount shall be based on the purchase price of the home, the first mortgage loan amount and the cost of closing the purchase transaction:    

  1. An amount equal to ten percent (10%) of the purchase price shall be attributed to the down-payment;
  2. An amount equal to one percent (1%) of the first mortgagee's loan amount shall be allocated to fund the up-front cost of the FHA Mortgage Insurance Premium (MIP) or the conventional Private Mortgage Insurance (PMI) premium. 
  3. Maximum of $5,000 shall be provided to fund standard closing costs. However, should the borrower's required one percent (1%) contribution to the transaction be insufficient to pay all additional and necessary prepaid items, the City shall consider funding those prepaid items in amount over and above the standard closing costs. In no case shall the total assistance exceed $20,000.


Monthly payments shall be amortized at an interest rate of zero percent (0%) for a term of 240 months. After 120 payments have been made, and the principal balance of the loan has been reduced by fifty percent (50%), the remaining principal balance or fifty percent (50%) of the loan balance shall be forgiven. 

Please do not hesitate to contact Linda Byars at 727-892-5572 or linda.byars@stpete.org for further information.

The city provides for down payment and closing cost assistance in the form of a second mortgage loan to eligible home buyers, whose household income does not exceed 80% of Median Family Income (MFI) as defined by the U.S. Department of Housing and Urban Development. Availability will continue to those at or below 80% MFI until funds are exhausted. The city's Housing and Community Development Department has budgeted funds, received from the State Housing Initiative Partnership (SHIP) Program and the Home Investment Partnership (HOME), sufficient to serve its citizens, at or below 80% MFI, well into the coming fiscal year.

Lenders are requested to submit a complete application package to the City of St. Petersburg Housing and Community Development Department at One Fourth Street North, Ninth Floor of the Municipal Services Building, St. Petersburg including the documentation requested on the TRACKING SHEET and HOME BUYER LOAN APPLICATION:

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