67-59.230. Form of Assistance

Effective on Thursday, December 12, 2013
  • 167-59.230 2Form of Assistance.

    5(1) Eligible Applicants who have not been declined by their mortgage servicer will receive assistance under the PR Program in the form of a forgivable loan. Applicants must execute Hardest Hit Fund loan documents before any funds are provided. Funding will be paid by Florida Housing directly to the Applicant’s mortgage servicer.

    57(2) For loans that are recast pursuant to 65The Agreements, 67after the application of the PR assistance, the loan will be in the form of a 0% interest, non-recourse, deferred payment, forgivable loan. The loan will be forgiven over a five year period at a rate of 20% per year.

    107(3) For Federal Housing Administration (“FHA”), Veterans Administration (“VA”) and United States Department of Agriculture Rural Development (“USDA-RD”) loans, if the borrower fails to refinance the loan within 180 days from the date that the principal reduction payment is made on their behalf, then the loan will only be forgiven 100% at the end of the fifth year (no incremental forgiveness).

    168(4) If the home is sold or refinanced prior to the maturity date of the HHF loan and there are sufficient funds to the Applicant out of the transaction, then the balance of the loan that has not been forgiven must be repaid.

    211Rulemaking Authority 213420.507(33) FS. 215Law Implemented 217420.507(33) FS. 219History–New 12-12-13.

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