Gap Program Introduction

The Keystone Challenge Fund provides financial assistance to low or moderate income households purchasing homes to be occupied as their primary residence in Polk County. We administer State Housing Initiatives Partnership Program (SHIP) funds for Polk County, the City of Lakeland, and the City of Winter Haven. SHIP funds provide down payment and/or closing cost assistance to eligible homebuyers who have secured first mortgage financing. Please refer to the links at left for more information on homebuyer and property eligibility.

Keystone's programs are HUD-acceptable to provide secondary financing for FHA-insured mortgage loans. Conventional mortgages or other financing that meets the basic requirements detailed below is also acceptable. Gap Program down payment assistance varies depending on the income level of the buyer and the local government assistance program guidelines. See information on availability of funding.  An additional amount up to $2,000.00 is usually available for closing costs.

Down payment and closing cost assistance is secured by a second mortgage that is subject to recapture based on length of or continued occupancy. Interest is not charged and the homebuyer does not make monthly payments.

The Polk County assistance program (for clients not purchasing in the city limits of Lakeland or Winter Haven) may allow the assistance to be secured by a third mortgage for clients utilizing the FHFC Bond Programs or the Pinellas County (serving Polk County) Bond Programs.

The SHIP Program establishes some basic requirements regarding homebuyer and property eligibility.  Existing homes must be inspected to ensure that they meet program requirements. The City of Lakeland, Winter Haven, and Polk County have each also established additional guidelines for assistance. The location of the property being purchased determines the source of the assistance funds.

View and print a summary of the guidelines for assistance by funding location.

• Lender Participation Requirements

All lenders are welcome to participate in the Gap Program.  First mortgage loans must meet some basic requirements:

• The first mortgage loan must be affordable. Affordable is defined as a fixed interest rate, fully amortized loan, at not more than 1% above the current 60-day FNMA par pricing.
• The first mortgage loan may not require unreasonable or unnecessary closing costs paid by the buyer.
• Non-qualifying assumables, adjustables, seller financing, or mortgages with balloons or pre-payment penalties are not allowed.

To participate, you must request a manual!  The manual contains needed information to request and reserve funds for your client, specifics on additional program requirements, and the forms and documentation materials to prepare and submit a request for assistance. 

Gap Program Manual Request Form

NOTE:  All Fields are Required

• If you have specific questions regarding our Gap Program, please call our office at 863-682-1025, ext. 7

• All assisted clients must attend a Homebuyer Education Class.

Click here for information on our current class schedule.