SHIP Down Payment Assistance
Looking for a home
in St. Johns County?
Need help with down payment and closing costs?
St. Johns County’s State Housing Initiatives Partnership (SHIP) Down Payment Assistance Program can help.
Eligibility Requirements
- Household must meet income eligibility requirements. All household income of people 18 years and older, who will reside in the property, must be included.
- Limited funding for applicants whose Area Median Income is greater than 80%. See chart to determine your category of qualification.
- The home must be your primary residence, and homestead filed with SJC Tax Collector.
- Must currently live or work in St. Johns County for at least 12 consecutive months.
- Must be a first-time homeowner (has not owned a home in the last three years).
- Must submit an application for the Housing and Financial Counseling Program
- Must have a credit score of 640 or higher
- Must complete Homebuyer Education class provided by the SJC HUD Certified Housing Counselor.
- The certificate is good for one year.
- Applicants must submit a completed SHIP application and required documentation for determination of income eligibility.
- You must prepare for up to 3% of the purchase price for negotiation before closing.
- Must be approved for a first mortgage by a participating lender.
- The first mortgage must be a fixed-rate; no ARM’s, prepayment penalty, negative amortization, balloon loan, or owner financing is permitted.
- You will be asked for income, asset, and liability information multiple times during this process. Be prepared to provide this and keep these items current as you move through this process.
Maximum Award
- Up to $100,000
Payment Assistance Loan Terms
- This second mortgage is a 15-year deferred loan forgiven on a prorated basis of 10% per year, beginning in year 6. (No forgiveness period between years 1 through 5)
- Second mortgage and note signed at closing for this deferred loan
- 0% interest rate- no interest accrues throughout the life of the loan
- No repayment is required as long as first loan is in good standing
- Repayment is required in full when one of the following conditions are met:
- Sale of home
- Title is transferred
- Loss of homestead exemption of homeowner no longer lives in the home
Frequently Asked Questions
How do I get started?
First, contact our HUD Housing Counseling Team. Then you will need to take the Home Buyer Education class with St. Johns County. All applicants must have taken and received a certificate from St. Johns County’s HUD Housing Counselor within the last 365 days.
Contact Housing to get started 904-827-6890.
Can funds be used for repairs?
Necessary repairs to major systems: roof, plumbing, HVAC, and electrical systems are encouraged to be made at the time of purchase as funds permit to prevent future financial burdens on homeowners.
NOTE: repairs are not eligible for condominiums, duplexes, and townhomes.
Is refinancing allowed?
Refinance to access equity in the home is prohibited. However, refinancing of the first mortgage is permitted if the request is submitted in writing, the refinance is at a lower fixed rate with no cash-out, and refinanced closing costs do not increase the loan balance beyond the original loan amount.
How can funds be used?
- Funds will be awarded on a first-qualified, first-served basis.
- Funds can be used to assist first-time homebuyers with the purchase of a new or existing single-family home, condominium, duplex, townhome, or mobile/manufactured home (home/land package) constructed after June 1994.
- Funding may be used for down payment, closing costs, principal buy down and/or repairs as needed for affordable homeownership.
What is your credit score?
Minimum Credit score requirement is 640. Need to get your score up? An SJC Housing Counselor can help you! Our HUD Housing Counselor will set up a meeting with you, conduct a soft credit pull (Cost $21.00) and personalize your next steps towards homeownership.