SHIP Homeownership Mortgage Assistance Guidelines

SHIP funds SHIP funds may be awarded to income-eligible first time homebuyers to assist with the purchase of an existing home. Funds may be used for down payment, closing costs, and gap financing.  A newly constructed home must have received a certificate of occupancy within the last 12 months. An eligible home is defined as an existing single-family home or a manufactured home built after June 1994.

1.   Income Categories to be served: Very Low, Low, and Moderate

2.   Maximum award: awards will be awarded by income category as follows:

• Very Low: $40,000
• Low: $25,000
• Moderate: $15,000

3.   Terms:

1. Repayment loan/deferred loan/grant: Funds will be awarded as a deferred loan secured by a recorded subordinate mortgage and note.
2. Interest Rate: 0%
3. Years in loan term: 10 years
4. Forgiveness: The loan will be forgiven on a prorated basis monthly over the term of the loan.
5. Repayment: Not required as long as the loan is in good standing.
6. Default: The loan shall be in default and be due and payable to the Okeechobee County Board of County Commissioners Housing Assistance Fund under the following conditions:
   • Property is sold or vacated
   • Property is leased or rented
   • Refinancing occurs with cash out to the borrower
   • Property is used as collateral for a home equity line of credit
   • Loss of Homestead exemption status
   • Property is occupied by a person or household other than the person or household for which the assistance is intended for a period of (15) years
   • Title or any of the interest in the property is transferred, given away, or otherwise conveyed whether by voluntary act or involuntary act, by operation of law or otherwise
   • Applicant is divested of title by judicial sale levy
   • Or if foreclosure action is completed against the property
   • In cases where the qualifying homeowner(s) die(s) during the loan term, the loan may be assumed by a SHIP eligible heir who will occupy the home as a primary residence. The SHIP eligible heir must be the legal owner of the property. To become the legal owner, a probate action will need to be filed with the Circuit Court in Okeechobee County, Florida. If the legal heir is not SHIP eligible or chooses not to occupy the home, the outstanding balance of the loan will be due and payable.
7. Recipient/Tenant Selection Criteria: Applicants will be ranked for assistance based on a first-qualified, first-served basis.
8. Additional Information:
   • The maximum amount will not be awarded in all cases.
   • Applicants must secure a first mortgage from an approved lender.
   • Mobile homes that do not meet Department of Highway Safety and Motor Vehicles installation standards, zoning, and other local code requirements, or are not classified as real property (ownership of unit and land) therefore are not eligible for purchase assistance.