The Florida homebuyers association has proposed new rules that would require the state to allow more than 1,500 new homes for first-time buyers.
The proposal was introduced Wednesday and is expected to be voted on by the association’s executive board.
The association, which includes a group of Florida homeowners, is proposing rules that will make it more difficult for first timers to purchase homes.
The homebuyer advocates for a state government program to give low-income homeowners the opportunity to buy a home without the need for a mortgage.
The proposed rules, which could be introduced by the end of the month, would prohibit the state from allowing a first-timer to purchase a home unless they already have a mortgage, have a down payment of at least 30% of their annual income, and are paying a downpayment of less than 25%.
If a first timer were to apply for a Florida mortgage, the homeowner would have to provide proof of income.
A homebuyter could also apply for an affordable-housing loan and pay off the loan in the first 10 years of ownership.
The program would be phased in over the next five years, with the first homeowners eligible to apply in 2021.
The new rules would apply to all new homes that are proposed, but not sold, in the state.
Under the proposed rules for new homes, a first time homebuy will have to prove that they: have a reasonable income; have a stable mortgage; and pay a down-payment of at most 30%.
The rule would require a down repayment of 25% of annual income.
The group has been working to craft the rules for a while.
The first-timers plan to lobby for the changes, which they believe will help protect first-generation homebuyrs.
The Florida Homeowners Association said it supports efforts to reduce home foreclosures, but said it believes the changes proposed are too burdensome.
“We are confident that the proposed new mortgage-protection provisions will help the state of Florida meet its housing obligations to its homebuyners,” the association said in a statement.
“We applaud the work of the new administration to support homebuy-a-moment and the new mortgage rules proposed in this proposal.
We encourage the administration to continue the important work of protecting our homeownership program and ensure that the new rule is adopted.”