General SHIP Questions
Q. Are there payments on this loan?
A. This is an interest free, deferred loan. This means that, if you stay in compliance with the Program, at the end of the term the loan will be forgiven. If you do not stay in compliance with the loan it will cause a default. A default requires repayment of the full awarded amount plus 4% per annum (counting the number of years you have had the loan) within 60 days of the default or the County will need to foreclose.
Q. In what ways can I make sure that I stay in compliance with the SHIP program during the life of the loan and avoid defaulting, and also avoid the county foreclosing on the SHIP loan?
A. Some of the ways you can make sure that you stay in compliance with the SHIP program are:
- Maintaining the home as your primary residence for the entire life of the loan.
- Keeping your contact information up to date with the SHIP office for the life of the loan.
- Keeping your home insurance up to date.
- Paying your property taxes every year.
- Avoiding any City or County code violations on the property during the life of the loan.
Q. What happens if the SHIP loan recipient passes away before the loan has ended?
A. If the SHIP loan recipient passes away while the loan is still active, then their heir may apply to see if they qualify for the program. If they don’t qualify, then the loan must be repaid in 60 days or less.
Q. What happens if I move out of the house before the loan has ended?
A. If you move out of the house before the loan has ended then you are considered in default of the loan. You will have 60 days to pay the money back plus 4% per annum.
Q. Is it possible that there is waiting list?
A. Yes, this could happen. The County is only awarded $350,000 a year. Each applicant can receive $100K, so the entire amount of money could be used up by only 4 applicants.
Q. If I am a single man who owns a home and is in need of assistance, and my fiancé lives in the home with me, do I have to count her income?
A. Yes, we look at current income and projected income. The fact that you are going to get married will be counted toward projected income.
Q. If I own my home and need assistance but I know I will not be able to pay homeowner's insurance every month throughout the life of the loan, do I still qualify?
A. NO, it is VERY important that insurance is kept on the home to protect your and the County's investment.
Q. Can I have a co-signer on my mortgage with the financial institution even though they do not live in the home?
A. Yes, BUT if default happens then the County will try to get the money back from you and the co-signer.
Down Payment Assistant Program
Q. Do I need to have a Pre-Qualification letter from a first mortgage lender before I can turn in an application?
A. Yes, it is a requirement that you obtain a Pre-Qualification letter from a mortgage lender before submitting your SHIP application to us.
Q. Do I need to complete a Home buyer Education Course?
A. Yes, you are required to complete the course.
Q. When using the Down Payment Assistance Program, can I do an owner finance?
A. No, this is not allowed in the Glades County SHIP Program.