City of Largo, Florida

Benefits of the Program

• Low Closing Costs: Purchase of the first year's hazard insurance is the only cash required from the Homesteader. All other closing costs will be included in the City's second mortgage, discussed below.
• 10% Down Payment Provided: The City deducts 10% from the purchase price to count as the Homesteader's down payment. This 10% is initially deferred and then forgiven after the five-year residency requirement has been met. The Homesteader must live in the house for at least five full years to receive unconditional fee simple title to the property.
• Affordability: The mortgage payment will be below 30% of the Homesteader's monthly income - no matter what the purchase price of the home is! The City will provide a zero-interest second mortgage to cover any remaining balance not covered by the first mortgage. Here's how it works: Ninety percent of the purchase price is mortgaged with a combination of fixed rate and/or deferred financing. The City of Largo provides the fixed financing at market rate, with a maximum monthly mortgage payment (principal, interest, tax and insurance) to be below the affordability standard (30% of gross monthly income, but at least $50,000). Deferred loans are available from the City at 0% interest to finance the remainder of the 90% not covered in the first mortgage. You must be able to qualify for at least a $50K payback first mortgage with the City.
• Condition of Property: All homestead houses are "brought up to code" by the City prior to sale. This is done at no cost to you! Any work performed by the City on the house is guaranteed by contractor for one full year! This is not a guarantee that nothing will ever go wrong with your house, but an assurance that you will start with everything in good working condition.

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