Levy County Down Payment Assistance Program

Program Overview

The State Housing Initiatives Partnership (SHIP) provides substantial support for first-time homebuyers in Levy County. Funds are allocated for the 2026 fiscal cycle.

Deferred Payment Loan

Funds are provided as a 0% interest loan with no monthly payments required. This increases your purchasing power without adding to your monthly debt.

Loan Forgiveness

The assistance is fully forgiven after 10 years, provided the home remains owner-occupied. No repayment is needed if you stay for the full term.

Purchase & Repair

Funds can cover down payment, closing costs, and even necessary repairs for eligible properties.

Assistance & Forgiveness Details

Loan Specifics

Max Assistance

Up to $30,000

For down payment, closing costs, and potentially repairs to the home being purchased.

Loan Type

0% Interest Deferred Payment Loan (DPL)

Recorded as a subordinate (2nd) mortgage. No monthly payments required while in good standing.

Forgiveness Schedule

10-Year Term The affordability period lasts for 10 years.
Prorated Forgiveness Forgiveness is not immediate. It occurs at a rate of 20% per year starting after Year 6.
Borrower Protection If the borrower passes away during the loan term, the loan is fully forgiven.

Who Qualifies in 2026?

Applicants must meet specific criteria to be considered for the 2026 funding cycle. The program operates on a first-come, first-qualified basis.

First-Time Homebuyer: You must not have owned a home in the last 3 years.
Residency: Must be a Levy County resident purchasing a primary residence within the county.
Income Limits: Must fall within Low to Moderate income brackets based on household size.
Buyer Contribution: A minimum of $1,000 contribution from your own funds is required.
Education: Must complete a HUD-approved homebuyer education course.

Priority Groups

Special consideration is given to Special Needs households (SSI, SSDI, Veterans) and Essential Services Personnel.

Important Restrictions

No Mobile Homes: Mobile and manufactured homes are not eligible for this program.

No Owner Financing: Property must be financed through an approved lender.

Repayment Trigger: If you sell, rent, or refinance before the 10-year term ends, the loan generally must be repaid.

Frequently Asked Questions

Common questions about qualifying for and using the Levy County Purchase Assistance Program.

How do I qualify for Levy County down payment assistance?

To qualify, you must be a first-time homebuyer purchasing a primary residence in Levy County. You need to meet household income limits (low to moderate), contribute at least $1,000 of your own funds, complete a HUD-approved homebuyer education class, and secure a first mortgage from an approved lender.

What is the income limit for the Levy County SHIP program?

Income limits depend on household size and are classified as Very Low, Low, or Moderate. While specific numbers change annually, you generally must earn between 80% to 120% of the Area Median Income (AMI). All household income is counted and verified during the application process.

Is the Levy County down payment assistance a loan or a grant?

It is a 0% interest deferred-payment loan, not a grant. However, it functions similarly to a grant if you stay in the home. The loan requires no monthly payments and is forgiven at a rate of 20% per year starting after the sixth year, becoming fully forgiven after 10 years.

Can I buy a mobile home with Levy County SHIP funds?

No. Levy County SHIP funds cannot be used to purchase mobile or manufactured homes. The program is strictly for eligible single-family site-built homes. Funds are also prohibited for use on rental properties or owner-financed transactions.

How much down payment assistance can I get in Levy County?

Eligible homebuyers can receive up to $30,000 in assistance. These funds can be applied toward your down payment and closing costs. In some cases, funds may also be used for necessary repairs to the home you are purchasing to ensure it meets safety standards.

Do I have to pay back the Levy County down payment assistance?

You generally do not have to pay it back if you live in the home for the full 10-year affordability period. If you sell, rent out the property, or refinance before the 10 years are up, the loan balance is triggered and must be repaid to the county.

What happens if I sell my house before 10 years?

If you sell the home before the 10-year term ends, you will be required to repay the SHIP loan. The forgiveness is prorated, meaning you might owe a reduced amount if you sell after year 6, but generally, early sale triggers a repayment obligation.

How long does it take to get approved for Levy County SHIP?

The County has up to 120 business days to review your application from the date it is received. Because funding is limited and awarded on a "first-come, first-qualified" basis, it is crucial to submit a complete application with all supporting documentation immediately when the cycle opens.

Is Levy County SHIP funding currently available?

Funding for the 2025–2026 cycle has been fully allocated. Applications for the next funding cycle are expected to open on October 1, 2026. It is recommended to prepare your eligibility documents and pre-approval now so you are ready when the portal reopens.

Can I use SHIP funds for closing costs?

Yes. The up to $30,000 in assistance can be used to cover both the down payment and typical closing costs associated with your mortgage. This reduces the amount of cash you need to bring to the closing table, though you still need a minimum $1,000 personal contribution.

Does the Levy County assistance require a credit check?

Yes, you must qualify for a first mortgage with a participating lender, which requires a credit check. While the SHIP program itself focuses on income eligibility, you cannot receive the assistance without a lender pre-approval letter for the primary mortgage loan.