Loan funds are available to help homebuyers cover part of their down payment and closing costs when purchasing a principal/homestead property within the city limits of Clearwater.
The city of Clearwater, through its approved non-profit housing agencies, provides down payment and closing costs assistance to income eligible households who meet program criteria. Assistance is provided in the form of a loan, 50% of which will be amortized over 20 years, the other 50% will be forgiven at the maturity date, so long as no event of default exists. If the home is sold prior to the maturity date, the entire outstanding balance of the loan will be due and payable to the City.
Payments will begin on the 50% amortized balance after a five-year deferral period. The property to be purchased must be the borrower’s principal residence. The maximum loan amount is $45,000 for existing or newly constructed homes. The maximum sales price is $244,000 for existing homes and $263,000 for newly constructed homes.
For more information on the Down Payment Assistance Program, please contact one of the following agencies:
For additional details about the program, please see our Down Payment Assistance Program Manual(PDF, 1MB).
To request a payoff for a recorded mortgage, please obtain a Release of Information form from our mutual client and contact Kara Grande with your request for payoff at (727) 562-4056.
Please allow three business days for processing.
All requests for subordination must meet the requirements of our Loan Subordination Policy:
In general, the city of Clearwater does not subordinate mortgages made using CDBG, HTF, HOME, and SHIP funds. However, under the following circumstances, the City will consider taking a subordinate position:
- The original borrower continues to own and occupy the home as its primary residence.
- The original borrower would be benefited by securing a lower interest rate on his or her first mortgage accompanied by lower monthly payments.
- The new monthly payment includes escrows for taxes and insurance and represents between 30% - 35% of a borrower’s gross monthly income.
- The new first mortgage interest rate is at least two percentage points below the original first mortgage, and/or as a result of the monthly savings, the borrower should be able to recoup (break-even) the loan closing costs within 3-5 years.
- The new loan’s origination fee, points, commitment fees, buy down fees and other lender charges do not exceed 4% of the loan amount.
- The new first mortgage is a permanently fixed-rate mortgage with no balloon payments and no pre-payment penalty. Terms may be made for as few as ten years and may go up to thirty years as applicable based on the original loan balance and the term remaining on the original note.
- The borrower does not receive any cash out for any purpose, including, but not limited to, home improvement loans, bill consolidation loans, lines of credit, future advances, personal loans, medical collections, other mortgages or encumbrances or liens.
- The borrower must have sufficient equity in the home so as not to displace the City beyond a 145% loan to value ratio.
- If the borrower has a payment-type loan, the account must be current.
- Property Taxes must not be delinquent.
Borrowers interested in seeking approval from the City’s Housing Division to subordinate a first mortgage must:
- Write the city of Clearwater’s Housing Division requesting the City subordinate to their lender and authorize the lender to receive information regarding their loan for the purposes of the refinance.
- The Lender must provide the details of the loan being requested by supplying copies of the Loan Estimate, Itemization of Fees, Title Commitment, Appraisal, Application (1003 form the Lender) and the projected settlement costs.
- Provide additional information as needed to establish that the loan is strictly for a reduction in payment/interest rate and that the lender is not charging rates or providing terms that will in some way fall under the category of predatory lending practices.
- The City must review a copy of the Closing Disclosure prior to release of the City’s executed Subordination Agreement. If a title company faxes the Closing Disclosure to the City when completed, and supplies their FedEx account number, the City will overnight, or fax, if acceptable, the executed Subordination Agreement, if in agreement with the figures on the Closing Disclosure.
- Borrower must submit proof of homeowner’s insurance.
- Processing fee of $100 will be charged to the borrower for subordination review and processing.
- All requests for subordination must be made at least thirty (30) days prior to closing.
If your new loan meets the criteria above, please contact Terry Malcolm-Smith at (727) 562-4036 AT LEAST 30 days prior to closing.