Islamorada, Village of Islands First-Time Homebuyer Down Payment Assistance Program

Special Alert

Program limited to deed restriction properties or must have a deed restriction placed at closing.

Maximum Purchase Price


Contact Info:

https://www.islamorada.fl.us/departments/planning/affordable_housing_resources/index.php 86800 Overseas Highway, 3rd Floor, Islamorada, FL 33036 305-664-6498


An applicant for the first time homebuyer down payment assistance program shall meet all of the following requirements: (1) Be either a resident of the village or Monroe County or be employed within the village or Monroe County at the time the application is submitted. The applicant shall provide proof of residency or employment within the village, Monroe County. (2) Agree to occupy the eligible property to be purchased under this program as the applicant’s principal residence (provided, however, that this requirement may be temporarily suspended if the applicant has to temporarily relocate due to the applicant or spouse being (i) an armed forces reservist being called to active duty or (ii) an active duty member of the armed forces being called to serve in a conflict area, (3) Be a United States citizen or a resident alien; (4) Be at least 18 years of age; (5) Have adjusted gross income that meets either the very-low, low, or moderate income requirements set forth in article II of chapter 30; (6) Shall not have previously received a loan under this program; (7) Shall have the ability to secure first mortgage financing on the property on terms and conditions reasonably acceptable to the village as approved by the village attorney; and (8) Shall provide at least three and one-half percent of the purchase price for the property in cash (or such other percentage as may be required by the FHA, and as amended from time to time). Buyer must be a first-time home buyer. The term first-time homebuyer also includes an individual who is a displaced homemaker or single parent. If approved, the grant money is transferred to the closing agent prior to the closing date to be held in escrow. If the unit proposed for purchase does not have an existing deed restriction within a minimum of ten years remaining, then the applicant shall be required to complete all required forms and documents for the Declaration of Restrictive Covenants to deed restrict the unit prior to the closing agent releasing the funds.

Credit Score Requirements

Based on 1st mortgage requirements.

Deferred Payments?

Waiting Period: 10 years Affordability Period: 10 years Forgiveness Increment: 10% per year Forgiven Portion: 90%

Accepted First Mortgage Type:

Freddie Mac, Freddie Mac HFA Advantage, Freddie Mac Home Possible, Fannie Mae, Fannie Mae HFA Preferred, Fannie Mae HomeReady, FHA 203(b)

Homeowners Education Class:


Is Forgivable?

Every year the buyer lives in the home and does not default on the program, the balance of the loan is reduced, or “forgiven”, by 10% ($1,000) up to a maximum reduction of 90% ($9,000).


Islamorada Home purchase must be with the village of Islamorada

Income Limitations:

Yes, based on Compliance Income (including household income) Income limits from HUD 2022 140% AMI guidelines Income Limits are based on the following formula: Total adjusted gross income of one or more naturalized persons or a family, which does not exceed 50% for very low income persons, 80% for low income persons and 140% for moderate income persons of the median annual adjusted gross household income for households within Monroe County. (Our program model will reflect the highest limit eligible)

Maximum Assistance

$10,000 The maximum down payment loan an applicant is eligible for under this program is $10,000.00. All residential dwelling units purchased with funding from the first time homebuyer down payment assistance program shall be either: a. An existing deed-restricted affordable residential dwelling unit as defined in section 30-32 of the village Code with a minimum of ten years remaining on the affordable housing deed restriction at the time the application is submitted; or b. An existing market-rate residential dwelling unit provided that a deed restriction is placed on the unit for a minimum of ten years in a form approved by the village attorney.

Education Requirements Info:

Contact Program Provider

Eligible Property Types:

Single Family Detached

Income By Household Size:

HH1HH2HH3HH4HH5HH6HH7HH8 $100,450$114,800$129,150$143,500$154,980$166,460$177,940$189,420 *Income limits as of 05/31/2023

Qualifying Ratios:

Determined by first mortgage product or lender.
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