The University of Florida Extension
Funding for the State Housing Initiative Program, better known as SHIP, is available for Madison County residents; funds help with down payment and closing costs on the purchase of a home. Prospective homeowners must secure a mortgage from a lender before the down payment and closing money is allocated for payment at the official closing on the home purchase. It is an on-going program providing a boost to achieve homeownership that many people overlook.
Over the years, SHIP has helped many families and individuals in Madison County achieve home ownership. The program was established on the idea that many people could make a house payment, but often lacked the substantial amount for down payment and closing costs associated with a home purchase. SHIP money can be used for the purchase of an existing home or the construction of a new one. This program targets moderate and low-income families.
Assistance is based on household income and family size. Individuals can earn up to $40,680 and a family of four can earn an income up to $58,080 to qualify for assistance. Residents in the moderate-income range can get up to $15,000 applied at closing with a two percent contribution toward purchase. Low income residents qualify for an amount up to $25,000 with a one percent contribution toward purchase. The assistance comes in the form of a grant that is paid to the lender at closing and is forgiven after 10 years of ownership. A 10-year lien is placed on the home; each year 10 percent of the money is forgiven, so if the home is sold before 10 years, a portion of the grant money will be paid back to SHIP from the sale of the home.
Before a home can be purchased, potential homebuyers must attend an eight-hour class series held at the Madison County Extension Service on a quarterly basis. Participants learn about the requirements for SHIP funding, steps in the home buying process, how to establish a family spending plan to ensure timely payments and home maintenance for increased value over time.
Currently, a home buying series will be held at the Madison County Extension Office beginning July 23 at 6 p.m. County residents interested in getting assistance must complete the eight-hour class to be eligible for assistance. To register for the home buyer class, call (850) 973-4138.
The University of Florida Extension/IFAS – Madison County is an Equal Employment Opportunity Institution.