Builder Subsidy Program

Florida Mortgage Corporation offers a "Builder Subsidy" Program which allows the builder to pay up to 12 months of the borrower's PITI (Principal, Interest, Taxes, Insurance) including mortgage insurance (PMI), if applicable or the ITI (Interest, Taxes & Insurance) if an "Interest Only" mortgage is used. The amount of the builder subsidy must be stated on the sales contract.

Imagine; NO mortgage payments to make for the up to the first twelve months, when you move in. If your builder is not offering a mortgage subsidy program, ask them to call us. The builder subsidy is safe and protected, because it's held in escrow. NO mortgage payments for the first year!

Amount of the Builder Subsidy is limited to the following maximum Builder-Seller contributions:

  • LTV's 90% or higher    =  3%    (Based on sales price)

  • LTV's 75% to 90%      =  6%                 "

  • LTV's 75% and less    =  9%                 "

      Purchase "NEW" completed constructed home or near completion

       One unit  (SFR)

       Owner-Occupied and Second Home  (No investment property)

       Minimum 660 Credit Score Required

       Maximum Loan Amount:  $1,500,000

       Mortgage payments apply to new home

Eligible Mortgage Programs:

  • Conforming Fixed Rate & Interest Only

  • Jumbo Fixed Rate & Interest Only

  • Conforming 3/1, 5/1, 7/1, 10/1 and Interest only

Builder subsidy may be calculated as a "lump sum" or estimated, based on a certain number of months. Builder is required to pay the full amount at closing. The amount of the builder subsidy must be stated on the sales contract.

Ineligible Properties: Investment properties, Manufactured Homes, CondoTels, Co-ops.


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