Program Structure
The HOME DPA program provides a "soft" second mortgage to bridge the gap between what you have and what you need to close. It is widely used because, unlike CDBG, it can be used anywhere in the county.
The "Gap" Subsidy
- ● Max Amount: Up to 10% of purchase price (max $34,000).
- ● Needs-Based: Calculated as (Required Funds - Earnest Money/Gifts) = Eligible Amount.
- ● Can be used for down payment AND closing costs.
The Terms
- ● 0% Interest second mortgage.
- ● No monthly payments.
- ● Forgiven over 10 years (10% per year).
Can I Use This With a $0-Down Loan?
Yes. If you are using a VA or USDA loan (which requires no down payment), the HOME program can still cover your closing costs and pre-paids, drastically reducing your out-of-pocket expense.
Critical Eligibility Rules
Property Requirements
- ✓ Existing Homes Only (Must have CO for 1+ year. No new construction).
- ✓ Located anywhere in Lee County.
- ✓ Single-Family, Condo, PUD, or Double-Wide (on owned land, post-1978).
- ✗ No Pools (In-ground pools are a disqualifier).
- ✗ Max Price: $340,000.
Borrower Rules
- ● You do not have to be a first-time buyer (but cannot own other property at application).
- ● No non-occupying co-signers allowed.
- ● Married couples cannot live separately.
- ● All household members must be U.S. Citizens or Permanent Residents.
Strict Inspections
The property must pass a HUD inspection by the county.
Pre-1978 Homes: Require a lead-based paint inspection by a certified assessor. This is paid by the buyer and strictly enforced.
Zero Cash Back
The homebuyer cannot receive any cash back at closing.
This includes reimbursement for earnest money, appraisals, or application fees. If there is a surplus, the assistance amount is reduced.
Income Limits (Effective June 1, 2025)
Warning: Income is calculated for the entire household (all adults).
| Household Size | Max Income Limit |
|---|---|
| 1 Person | $57,250 |
| 2 Persons | $65,400 |
| 3 Persons | $73,600 |
| 4 Persons | $81,750 |
| 5 Persons | $88,300 |
| 6 Persons | $94,850 |
10-Year Forgiveness Plan
This loan is self-amortizing. If you remain in the home as your primary residence, the balance reduces by 10% every year until it hits $0.
Triggers for Repayment
The prorated balance is due if you: Sell, Refinance, Lease, Transfer Title, or Stop homesteading the property.
How to Apply
Get a Mortgage Commitment
You must have a fully executed contract and a loan commitment from a lender first.
Lender Submits File
Your lender submits the application directly to Lee County Human & Veteran Services.
Funding Reservation
Funds are reserved on a "first come, first ready" basis. Approval generally takes 4-6 weeks.
Pre-Screen Checklist
If any of these are true, this program may not work for you:
- ⚠ Is the purchase price over $340,000?
- ⚠ Is it New Construction? (Must be existing home > 1 year).
- ⚠ Is there a Pool or Mother-in-Law unit?
- ⚠ Do you need a non-occupant co-signer?
- ⚠ Is your household income above the limit?