Downpayment Assistance Program
We are not currently accepting applications for this program. Please check back after June 4th. Thank you.
Purpose of Program
The City of Cape Coral will provide down payment/closing cost assistance to first time homebuyers purchasing existing homes. A portion of the assistance will be reserved to assist clients with minor repairs/replacement (not cosmetic in nature) identified in the home inspection.
Maximum Amount of Assistance
Down Payment/Closing Cost Assistance is available to applicants who are very-low and low income as determined by guidelines provided by US HUD. (see Income Guidelines Chart below).
The income level maximum assistance amounts are categorized as follows:
Very Low Income: a maximum award of up to $27,500
Low Income: a maximum award of up to $25,500
Eligible Applicants
Must meet income guidelines. These limits are based on the income and assets of all residents in the household and are adjusted on an annual basis.
| Income Guidelines Chart | ||
| Lee County, Florida | ||
| Your annual income must fall within the categories below: | ||
| Household Size | Very Low: Up to 50% MI | Low 50.01-80% MI |
| 1 | $19,950 | $31,950 |
| 2 | $22,800 | $36,500 |
| 3 | $25,650 | $41,050 |
| 4 | $28,500 | $45,600 |
| 5 | $30,800 | $49,250 |
| 6 | $33,100 | $52,900 |
| 7 | $35,350 | $56,550 |
| 8 | $37,650 | $60,200 |
Property Requirements
The home being purchased must be a single family home located within the city limits of Cape Coral.
Mobile homes are not eligible.
The home must be the primary residence of the client. The City of Cape Coral will check the property’s homestead status through the Lee County Property Appraiser on an annual basis.
Must have legal right to reside permanently in the United States.
Must not own another home.
The home must appraise at or above the sales price.
Maximum purchase price is $258,690.
Assistance will be no more than 20% of the sales price up to $25,000.
Clients will be responsible for obtaining the first mortgage from a financial institution in accordance with the City of Cape Coral Lender Guidelines.
First Mortgage Products
Minimum 30-Year Fixed Rate (No Balloons or ARMS) conventional mortgage loans
Veterans Administration loans (VA)
Federal Housing Administration loans (FHA)
United States Department of Agriculture (USDA)
Maximum Principal, Interest, Taxes, Insurance (PITI) Debt-to-Income Ratio (total monthly housing payment divided by gross monthly income) cannot exceed 33%
Maximum Total Debt-to-Income Ratio (total household payment plus other recurring debts (e.g. car payments) divided by gross monthly income) cannot exceed 45%
Buyer Contribution
$2,000 before or at closing.
Resale Provisions
The SHIP DP and rehabilitation subsidy received by a client will be secured by a surbordinate second mortgage for 10 years. During this lien period, the second (SHIP) mortgage is a “silent” (zero interest, no payments required) mortgage as long as the client uses the property as the primary residence. The second (SHIP) mortgage will be forgiven at the end of the lien period. SHIP subsidy must be repaid if the property is sold prior to the end of the lien period or if the property is rented or refinanced without prior approval of the City of Cape Coral.
Homebuyer Education
Homebuyers must complete eight hours of first-time homebuyer counseling through a HUD approved counseling agency.
Application and Program Information
This program is being run by Cape Coral Housing Development Corporation, a non-profit corporation. The agency can be reached at (239) 471-0922. The agency’s website address is www.capecoralaffordablehousing.com.
Applications for the program are available by contacting the agency directly. A fully accepted purchase contract and a commitment letter for a first mortgage from a lender should be included in the application packet. Home inspection report will be submitted to CCHDC. Based on the inspection report, CCHDC will identify the repairs that will be paid with SHIP funds. The client must provide 3 estimates from the licensed and insured contractors for these repairs. The amount of the lowest bid will be shown as an escrow account (held by the title company) on the HUD-1 Settlement Statement. This will be shown as separate amount from the down payment assistance on the HUD-1 Settlement Statement. Once the repairs are completed (and pass inspection), the payments from the escrow account will be released to the contractor.
