Gap Program Introduction
The Keystone Challenge Fund provides financial assistance to
very low, low or moderate
income households purchasing homes to be occupied as their primary residence in
Polk County. We administer State Housing Initiatives Partnership Program (SHIP)
funds for Polk County, the City of Lakeland, and the City of Winter Haven. SHIP
funds provide down payment and/or closing cost assistance to eligible homebuyers
who have secured first mortgage financing. Please refer to the links at left for
more information on homebuyer and property eligibility.
Keystone's programs are HUD-acceptable to provide
secondary financing for FHA-insured mortgage loans. Conventional mortgages or
other financing that meets the basic requirements detailed below is also
acceptable. Gap Program down payment
assistance varies depending on the income level of the buyer and the local
government assistance program guidelines.
See information on availability of funding. An additional amount up to $2,000.00 is
usually available for
closing costs.
Down payment and closing cost assistance is secured by a second mortgage that
is subject to recapture based on length of, or continued, occupancy. Interest is not charged
and the homebuyer does not make monthly payments.
The Polk County assistance program (for clients not purchasing in the city
limits of Lakeland or Winter Haven) may allow the assistance to be secured by a
third mortgage for clients utilizing the FHFC Bond Programs or the Pinellas
County (serving Polk County) Bond Programs.
The SHIP Program establishes some basic requirements regarding homebuyer and
property eligibility. Existing homes must be inspected to ensure that they
meet program requirements. The City of Lakeland, Winter Haven, and Polk County have each
also established
additional guidelines for assistance. The location of the property being
purchased determines the source of the assistance funds.
- Lender Participation Requirements
All lenders are welcome to participate in the Gap Program. First mortgage loans must meet some basic requirements:
The first mortgage loan must,
- Be a fixed interest rate loan at not more than 1% above the current 60-day
FNMA par pricing.
- Be fully amortizing for a term not to exceed forty (40) years.
- Not contain a pre-payment penalty.
- Not include a yield - spread premium.
Not require unreasonable or unnecessary closing costs paid by the
borrower.
Seller financing is not allowable. Interest rate buydowns of up to 2% may be
allowable if applicant has been qualified at highest rate and lender obtains
advance approval from Keystone.
To participate, you must have a Gap Program Manual!
The manual contains needed information to request and reserve funds for your
client, specifics on additional program requirements, and the forms and
documentation materials to prepare and submit a request for assistance.
Before downloading the manual, if you are a new lender to us, please make sure you submit the
information requested on the form below to let us know that you wish to receive
future communications regarding any changes or updates to our programs. The link to
download the manual will display after you complete the form below.
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