Florida first-time homebuyer assistance programs
Home values have soared in the Sunshine State since the pandemic, and that’s creating challenges for some buyers in Florida. But state-sponsored first-time homebuyer loans and down payment assistance programs can help make homeownership more affordable.
Learn more about first-time homebuyer assistance programs in Florida — and whether you may be eligible.
Florida first-time homebuyer loan programs
Florida Housing’s loan programs are all 30-year, fixed-rate mortgages. Here’s an overview:
Florida Housing Homebuyer Program
Florida Housing’s Homebuyer Program offers mortgages to first-time homebuyers through select lenders across the state. The loans can usually be combined with down payment and closing cost assistance programs. To be eligible, you must:
- Qualify for a conventional, FHA, FHA 203K, VA or USDA loan
- Purchase a single-family home, townhome, condo, 2-4 unit multifamily property or a modular home below your county’s price limit
- Have a minimum credit score of 640
- Complete a homebuyer education course
- Have an income below your county’s limit
Florida Hometown Heroes Program
Through the Florida Hometown Heroes Program, eligible full-time workers can receive below-market rates on their mortgages, plus lower upfront fees, and down payment and closing cost assistance.
The down payment and closing cost assistance may total as much as 5 percent of your loan amount, up to $35,000. These funds are packaged in a no-interest, deferred-payment second mortgage. You’ll have to repay the assistance when you pay off your mortgage, no longer use the home as your primary residence, sell or transfer it, or refinance the original loan.
To qualify for this program, you must:
- Work for a Florida-based employer in a qualifying profession, including law enforcement officers, firefighters, educators, healthcare professionals, childcare employees and other frontline workers.
- Qualify for a conventional, FHA, VA or USDA loan
- Buy a home within the limit for your county
- Have an income within the limit for your county
Florida down payment assistance
If you receive a mortgage through a Florida Housing program, you may also be eligible for down payment and closing cost assistance.
Florida Assist Second Mortgage Program (FL Assist)
Through Florida Housing, eligible borrowers could receive up to $10,000 for a down payment or closing costs, at no interest, in a deferred second mortgage. Similar to the Hometown Heroes Program, you’ll repay it when you pay off your mortgage, no longer use the home as your primary residence, sell or transfer it, or refinance the original loan.
HFA Preferred Grants (3, 4 and 5 percent)
This program provides qualified borrowers with 3, 4 or 5 percent of the home’s purchase price to use toward the down payment and closing costs. There’s no interest, and the assistance is forgiven after five years.
Florida Homeownership Loan Program (FL HLP)
This program gives buyers up to $10,000 in assistance as a second mortgage at 3 percent interest. The mortgage must be paid off over 15 years unless you move, refinance, sell or transfer ownership of the property. In those cases, the balance must be paid in full.
Other first-time homebuyer loans and programs
While you’re considering first-time homebuyer programs in Florida, be sure to explore nationally available programs like:
- FHA loans: If you have a lower credit score or limited savings, consider an FHA loan. These loans require a down payment of as little as 3.5 percent with a 580 credit score.
- VA loans: If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t typically require a down payment.
- USDA loans: USDA loans don’t have a down payment requirement, but they’re available only to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
- Good Neighbor Next Door program: This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
As you prepare to become a first-time homebuyer, here are some next steps:
- Do your homework. For full details on loan programs and requirements, visit Florida Housing’s website. Keep in mind that Florida Housing is not a lender and doesn’t make borrowing decisions. Reach out to one of its approved lenders to apply for a mortgage or learn more details about which program best meets your needs. Note that lenders might have their own income and credit rules to qualify for a loan.
- Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number.
- Compare lenders. Regardless of which program you choose, it’s important to shop around for a mortgage. Interest rates are always changing, so if you find a rate that’s especially competitive, be sure to lock it in.
