For those looking to buy a home in Miami-Dade County, the Miami-Dade Economic Advocacy Trust (MDEAT) Homeownership Assistance Program (HAP) offers vital support to eligible first-time homebuyers. This program is designed to help lower- and moderate-income individuals afford homeownership by providing financial assistance with down payments and closing costs. Miami-Dade County is a diverse and dynamic place to live, and this program supports individuals and families in establishing long-term residency in the area.

Whether you’re drawn to Miami-Dade for its cultural richness, economic opportunities, or warm climate, the Homeownership Assistance Program (HAP) can help bridge the financial gap for those who need it most.

Overview of the Miami-Dade Homeownership Assistance Program

The Miami-Dade HAP is a second mortgage loan program that offers qualifying first-time homebuyers financial assistance for the costs associated with purchasing a home. This assistance is available as a deferred, forgivable loan with favorable terms to reduce financial strain on new homeowners.

The amount of assistance varies based on household income:

• For households at or below 80% of the Area Median Income (AMI): Maximum assistance is $28,500.
• For households above 80% of AMI: Maximum assistance is the lesser of 4% of the property purchase price or $14,500.

The grant amount is provided as a second mortgage with a 0% interest rate, deferred repayment, and a 20-year term. If all program conditions are met, the loan is forgiven at the end of the 20-year period, meaning that homeowners who remain in their property as their primary residence for the full term do not have to repay the loan.

Second Mortgage Loan Terms and Repayment Conditions

The loan terms for the Miami-Dade HAP are structured to support long-term residency while reducing the financial burden on homebuyers. Here are the key terms:

• Forgivable 20-Year Term: The loan is forgivable after 20 years as long as the homeowner meets all program requirements. This includes using the property as the primary residence for the full term.
• 0% Interest Rate: The loan is issued with a 0% interest rate, ensuring no additional costs accrue over time, making the financial commitment manageable for homebuyers.
• Conditions for Repayment: Repayment of the loan may be required under certain circumstances, including:
  • Sale, transfer, or lease of the property within the 20-year period.
  • Refinancing of the primary mortgage with a cash-out option.
  • Change of ownership or ceasing to use the home as the primary residence.
  • Default on the primary mortgage.

Eligibility Criteria for the Miami-Dade Housing Grant

To qualify for the Miami-Dade Housing Grant, applicants must meet specific criteria to ensure the program assists those most in need. The primary eligibility requirements include:

• First-Time Homebuyer Requirement: The applicant must be a first-time homebuyer, defined as someone who has not owned a home within the past three years. Exceptions to this rule include single parents with children under 18 who are recently divorced, displaced victims of domestic abuse, or individuals displaced due to government action.
• Miami-Dade County Residency: Applicants must currently reside in Miami-Dade County at the time of application and intend to use the property as their primary residence.
• Income Limits: Household income must fall within the established limits based on the AMI for Miami-Dade County. These limits are set as a percentage of AMI and adjusted annually.
• Down Payment Requirement: Homebuyers are required to contribute 1% to 3% of the home’s sales price as a down payment, demonstrating a personal investment in the property.

Income Limits for Miami-Dade Housing Grant

Eligibility for the HAP is determined in part by household income, which must fall within specific limits relative to the Area Median Income (AMI) for Miami-Dade County. Below is the income limit table for 80%, 100%, and 120% of AMI as of the current fiscal year.

Table 1. Income Table Miami-Dade, FL

Property Eligibility and Inspection Requirements

The Miami-Dade HAP includes specific requirements regarding eligible property types to ensure the homes purchased are suitable for the program’s objectives. Eligible properties must be located within Miami-Dade County and may include single-family homes, townhomes, villas, and certain condominiums. All properties must be sited on a permanent foundation with utility hookups and must serve as the buyer’s primary residence.

The program requires that each property undergo an inspection before closing to confirm that it meets basic safety and habitability standards. Homes purchased through this program must be immediately habitable, and any necessary repairs identified during the inspection must be completed before closing. By requiring inspections, the program ensures that homebuyers are investing in safe, quality housing that meets the program’s standards.

Financial Benefits and Considerations for Miami-Dade Homeownership

The Miami-Dade Housing Grant provides significant financial benefits, but there are a few considerations homebuyers should keep in mind:

• Initial Investment: Buyers are required to contribute a portion of the down payment, ranging from 1% to 3% of the purchase price. This contribution ensures that buyers have a personal investment in their home.
• Long-Term Savings: By deferring and ultimately forgiving the loan, the HAP reduces the financial burden of upfront costs and minimizes monthly expenses. This allows homeowners to build equity and financial stability over time.
• Community Commitment: The program’s long-term residency requirement encourages stability and community commitment. By remaining in the property for the 20-year term, homeowners avoid repayment and benefit from full loan forgiveness.

Why Choose Miami-Dade County?

Miami-Dade County offers a rich blend of cultural, recreational, and economic opportunities. Known for its vibrant communities, Miami-Dade boasts a diverse population, access to beautiful beaches, and a range of attractions, from the bustling neighborhoods of Miami Beach and Coral Gables to the tranquil parks and green spaces throughout the county. Living in Miami-Dade offers residents access to top-rated schools, a growing job market, and various cultural experiences that make the area an exciting place to call home.

Steps to Apply and Next Steps

To apply for the Miami-Dade Housing Grant, prospective buyers should work with a participating lender who is familiar with the program. Applicants must also complete an 8-hour homebuyer education course provided by MDEAT or an approved HUD counseling agency. This course helps ensure that first-time homebuyers are well-prepared for the responsibilities of homeownership.

Conclusion: Making Homeownership Possible in Miami-Dade County

The Miami-Dade Housing Grant offers invaluable assistance for first-time homebuyers seeking to establish a home in this dynamic region. By reducing the burden of initial costs and providing support throughout the home-buying process, the program empowers more individuals and families to achieve homeownership in Miami-Dade County.

Contact Information for Further Assistance

For more information about the Miami-Dade Housing Grant, please contact:

Miami-Dade Economic Advocacy Trust (MDEAT)
601 NW 1st Court, Suite 2132
Miami, FL 33136
Phone: (305) 375-5621
Email: HAPINFO@miamidade.gov
Website: MDEAT Homeownership Assistance Program

This article was prepared by the staff of Housing Nonprofit, with information sourced from the Miami-Dade Economic Advocacy Trust.