The City of Clearwater’s Housing Grant program is a transformative initiative aimed at fostering homeownership in the region. With a maximum second mortgage loan amount of $75,000 offered at a 0% interest rate, this Clearwater Housing program is tailored to assist potential homeowners with down payment and closing costs. 

Borrowers are required to contribute a minimum of 1% of the property’s sales price, which can originate from personal savings or other eligible sources. Designed to reduce barriers to homeownership, the grant prioritizes affordability with no monthly payments during the initial five-year deferral period. Afterward, repayment occurs over 30 years without additional interest. These flexible terms make it accessible for residents and new entrants to the Clearwater housing market.

Tailored for Clearwater’s Housing Landscape

The grant supports properties within city limits, specifically those with a “CW” tax code, encompassing a diverse range of housing types such as single-family homes, condominiums, and townhomes. Properties must meet strict quality and safety standards, including compliance with HUD Housing Quality Standards (HQS). Inspections are mandatory, ensuring the housing stock maintains a high standard for residents. This program is particularly significant for a city growing in both population and economic opportunity, reflecting an urban planning vision that harmonizes development with affordability. By limiting the acquisition price to $481,176, the initiative aligns with the region’s cost of living while preserving accessibility for moderate-income households.

Welcoming New and Existing Residents

Eligibility for the grant extends beyond first-time homebuyers, requiring borrowers to meet specific income thresholds and other qualifications. Household income limits apply, ensuring the program serves those most in need, and applicants must participate in a HUD-approved homebuyer education workshop. Clearwater’s program emphasizes not just affordability but also sustainability in homeownership, as the grant is contingent on the property serving as the primary residence. For those already living in Clearwater or considering a move here, the Clearwater Housing Grant represents a thoughtful opportunity to achieve homeownership.

The Target Area

The Housing Grant program targets properties within city limits. Located just 23 miles west of Tampa and 17 miles north of St. Petersburg, Clearwater offers convenient access to notable neighborhoods while maintaining its distinct character. Iconic landmarks such as Clearwater Beach and Sand Key Park are minutes away, providing ways to enjoy being outside. The local favorites include the Countryside Mall and Clearwater Marine Aquarium. The median household income in Clearwater is approximately $59,000 as of the 2022 census. That aligns with moderate-income thresholds set by the program to ensure affordability. With an average home value hovering around $375,000, the housing grant bridges the gap for eligible households amid steadily appreciating property values. The increasing demand due can be attributed to its coastal location and high quality of life.

Income Limits

Clearwater’s Housing Grant program is designed to assist households with incomes at or below 80% of the Area Median Income (AMI). Eligibility is determined based on household size and corresponding income limits. Below is a table outlining these limits:

For precise calculations of your household income contact Housing Nonprofit. We can provide personalized assistance and ensure you meet the program’s requirements. You can reach us through questionnaire at HousingNonprofit.org/apply.

Over the income limit? Who Qualifies for Housing Assistance

For higher-income borrowers who do not qualify for an income based grant, Housing Nonprofit offers an alternative path to saving through its below-market interest rate program. But who qualifies for housing assistance through these programs? As a licensed mortgage loan originator, Housing Nonprofit collaborates with 19 lenders across the nation, ensuring competitive rates are available to borrowers of all income levels. By working with a nonprofit loan originator, borrowers can access reduced interest rates that translate to lower monthly payments and substantial savings over the life of their loan.

Unlike traditional lenders, Housing Nonprofit operates with a mission-driven approach, focusing on affordability rather than profit, which helps reduce overall borrowing costs. For borrowers seeking financial flexibility and long-term affordability, partnering with a nonprofit not only provides access to better loan terms but also supports an organization committed to fostering economic sustainability within communities. This program ensures that all borrowers, regardless of income, can achieve homeownership with maximum financial efficiency.

Program Administration of Clearwater Housing Market

Clearwater’s Housing Grant program has a history of helping families achieve homeownership and stabilizing neighborhoods. Originating as part of the city’s broader effort to address affordable housing challenges, the grant is funded through a combination of municipal, state, and federal resources. These funds are specifically earmarked to bridge financial gaps for eligible homebuyers, providing a boost in a market where rising property values are a barrier for middle income families.

The administration of the program, however, faces unique challenges. They are aiming to preserve a balance between rapid urban development and keeping affordable housing stock. Despite these hurdles, the Housing Grant remains a bright spot in Clearwater’s strategy to create a more inclusive housing market.

Downside Considerations

While Clearwater offers many appealing attributes, prospective homebuyers should consider certain factors that might influence their decision. Crime rates in some neighborhoods have declined in recent years but remain higher than neighboring cities and Pinellas County averages. This disparity has raised concerns among potential buyers seeking long-term stability.

Some older properties in the area may need extensive renovations to meet modern safety and quality standards. These renovations can increase upfront costs.

For those seeking affordable housing in Clearwater, the proximity to tourist-heavy areas is appealing. However, it can also lead to seasonal traffic congestion and noise. This may impact the desirability of certain residential areas.

Buyers should carefully consider these factors along with the benefits of living in Clearwater to ensure their decision aligns with long-term goals.

Quality of Schools in Clearwater

The quality of schools in Clearwater offers insights into the community. Some schools perform at state average levels. Others lag behind nearby cities like Safety Harbor and Palm Harbor, known for higher-performing districts. This variation in ratings reflects Clearwater’s socioeconomic diversity. It highlights the need to research individual schools or districts when choosing where to buy a home.

Beyond academics, schools can serve as subtle indicators of community investment, safety, and family engagement. Well-maintained facilities, active parent-teacher associations, and extracurricular opportunities often signify a community that prioritizes youth development and civic participation. Conversely, schools with limited resources or underperformance may suggest areas facing economic challenges or transitional growth. For prospective homeowners, evaluating schools is important. It helps gauge educational quality. It also provides a view of neighborhood vitality and stability.

Health and Well Being in Clearwater

Clearwater offers various options for health and well-being, but access can vary by neighborhood. The city has major healthcare facilities, like Morton Plant Hospital, which provides comprehensive services and is highly ranked. For healthy food, residents can shop at grocery chains like Publix and Whole Foods, as well as local farmers’ markets with fresh, local produce.

However, some areas in the target zone may have fewer healthy food options, requiring longer trips to reach premium stores. Fitness and wellness services, including gyms, yoga studios, and parks like Crest Lake Park, support an active lifestyle. These factors create a healthy environment, but prospective buyers should assess neighborhood-specific resources when considering properties.

What People Say About Clearwater’s

Clearwater is widely talked about for its coastal neighborhoods. The city is recognized in nationally which says something about its growing appeal. Affordable housing in Clearwater is a key factor in its charm. It offers diverse housing options to suit most tastes. Here are five notable rankings that showcase Clearwater’s excellence:

1. Best Beach in the U.S. – TripAdvisor ranked Clearwater Beach as the #1 beach in the United States and the 6th best beach worldwide in 2022.
2. Top Place to Live in Florida – Niche ranked Clearwater among the top 500 cities in its “Best Places to Live in Florida” rankings for 2024.
3. Retirement Haven – U.S. News & World Report recognized Clearwater as one of the “Best Places to Retire,” citing its affordability and coastal charm.
4. Thriving Tourism Destination – Clearwater consistently ranks among the top Florida cities for tourism, driven by its natural attractions and cultural events. (Visit Florida)
5. Quality of Life and Safety – Safewise named Clearwater one of the safest cities in Florida, offering a mix of urban amenities and suburban peace.

These accolades highlight that Clearwater has something for most home buyers including families, professionals, and retirees.

Clearwater Housing Grant with Conventional or FHA Financing

When buying a home in Clearwater using a housing grant, it’s important to understand the options for a primary mortgage. Consider the differences between conventional and FHA financing. FHA loans are popular for first-time buyers. They have lower credit score requirements and smaller down payments. They also offer more lenient debt-to-income ratios. These benefits work well with housing grants. The grant can help cover down payments and closing costs, reducing upfront expenses.

On the other hand, Conventional financing usually requires higher credit scores and down payments. However, it may provide long-term savings. This can happen through lower private mortgage insurance (PMI) costs, or by avoiding PMI altogether if 20% equity is reached. In Clearwater, homebuyers must ensure the combined loan-to-value (CLTV) ratio, including the grant amount, meets program guidelines for both FHA and conventional loans. Each option has unique benefits. Borrowers can work with Housing Nonprofit to explore which mortgages are compatible with area housing grants.

A Caution on Choosing a Lender in Clearwater

If arranging your own financing remember to approach traditional lenders with caution. Since a Housing Grant functions as a second mortgage, it can reduce the overall commission earned by lenders or mortgage brokers, potentially making them less inclined to prioritize the grant’s integration. This could lead to delays or complications during the loan process. In contrast, Housing Nonprofit specializes in bundling housing grants with low-cost FHA or Conventional first mortgages. As a mission-driven organization, Housing Nonprofit ensures the grant is seamlessly incorporated to reduce upfront costs and long-term payments for the borrower.

Housing Counseling and Buyer Education

Homebuyer education and housing counseling are important tools for applicants who do not yet meet eligibility requirements for a mortgage or housing grant. A HUD-certified first-time homebuyer course equips participants with knowledge about the homebuying process, including budgeting, credit management, and understanding loan options. These courses often include workshops or personalized counseling sessions address specific financial challenges. Our HUD-certified housing counselors can help resolve common eligibility issues such as low credit scores, high debt-to-income ratios, or insufficient savings for a down payment. They also assist with creating tailored financial plans, negotiating with creditors, and identifying programs to boost affordability. The HUD seal of approval ensures that these programs meet rigorous federal standards, providing unbiased and reliable guidance. Working with HUD-certified counselors not only helps applicants improve their mortgage eligibility but also lays the foundation for sustainable and successful homeownership.

Affordable Areas in Clearwater

In Clearwater several neighborhoods offer affordable housing options with convenient access to local amenities:

• Woodland Villas: Located near the intersection of U.S. Highway 19 and Sunset Point Road, Woodland Villas is approximately 3 miles east of Clearwater Beach. This neighborhood offers a cost of living index 25% lower than the Clearwater average, making it an attractive option for budget-conscious buyers.
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• Mission Hills: Situated close to the intersection of U.S. Highway 19 and Belleair Road, Mission Hills is about 4 miles southeast of downtown Clearwater. Residents enjoy proximity to Eagle Lake Park and have a cost of living index 21% lower than the city average.
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• Wyatt Street: Located near the intersection of Wyatt Street and North Highland Avenue, this neighborhood is approximately 2 miles north of downtown Clearwater. It offers easy access to Crest Lake Park and has a cost of living index 21% lower than the Clearwater average.
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• Villas of Lake Arbor: Found near the intersection of Belcher Road and Sunset Point Road, Villas of Lake Arbor is about 5 miles northeast of Clearwater Beach. The neighborhood is close to Lake Chautauqua Park and has a cost of living index 19% lower than the city average.
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• On Top of the World: Situated near the intersection of Belcher Road and World Parkway Boulevard, this community is approximately 6 miles northeast of downtown Clearwater. It offers residents access to two private golf courses and numerous recreational facilities, with a cost of living index 16% lower than the city average.
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These neighborhoods provide more affordable housing options in Clearwater, each with unique features and convenient access to local landmarks, parks, and major roads.

Sources

For additional information about the Clearwater Housing Grant program, please refer to the agency contact details below:

City of Clearwater Economic Development & Housing Department
608 N. Garden Avenue
Clearwater, FL 33755
Website: City of Clearwater Housing Programs

This article was written in collaboration with Housing Nonprofit staff, using information sourced from the City of Clearwater’s Economic Development & Housing Department and related materials.

References

1. Clearwater’s, Florida – Wikipedia
2. Clearwater Beach – Wikipedia
3. Pinellas County Property Appraiser
4. City of Clearwater – Housing Programs
5. Suncoast Housing Connections – Down Payment Assistance

These resources provide additional context and data about Clearwater, its housing opportunities, and the community at large.

FAQs

What is the current trend in the Clearwater housing market?

The Clearwater housing market shows steady growth, with rising property values driven by high demand and proximity to urban amenities and beaches.

Are there affordable housing options in Clearwater, FL?

Yes, neighborhoods like Woodland Villas and Mission Hills offer cost-effective housing options while maintaining access to local amenities and parks.

What is a housing grant, and how does it help?

A housing grant provides financial assistance for down payments and closing costs, making homeownership more affordable for eligible residents.

Who qualifies for housing assistance programs in Clearwater?

Eligibility depends on factors such as household income, residency, and participation in HUD-approved homebuyer education workshops.

What services are included in housing counseling?

Housing counseling includes credit management, budgeting advice, and guidance on improving eligibility for housing programs, tailored to individual financial situations.