One of the questions I get asked all the time is, “What are the first-time homebuyer programs in Florida?”
A lot of people think there are dozens of special loans just for first-time buyers. The truth is, most loan programs are available whether you’ve bought one home or ten.
That includes FHA, VA, USDA, and Conventional loans. The loan itself usually isn’t what makes you a first-time buyer. It’s the down payment assistance program attached to it.
Where first-time buyer status really comes into play is with down payment assistance programs, and even then, “first-time buyer” doesn’t always mean it’s your first home.
With any loan and down payment assistance there are minimum requirements beyond the 3 year rule, so you still have to meet those as well. For example, maybe you owned a home ten years ago, sold it, and have been renting ever since. If it’s been at least three years since you owned your primary residence, you may qualify as a first-time homebuyer again.
With each DPA program, it is important to know whether they are forgiven or not forgiven. What this means is whether you have to pay them back at some point. Forgiven means you don’t pay them back, but that’s not so cut and dry. Usually, you have to meet a time requirement. I’m going to go through the various ones the state of Florida offers, along with the minimum requirements and their level of forgiveness. I know that sounds like you’ve done something wrong.
I’ve seen buyers get frustrated because they worked with a lender who had never closed one of these programs before. The paperwork took longer, questions came up that shouldn’t have, and the process wasn’t as smooth as it could have been.
That’s why I always recommend working with a lender who regularly closes Florida down payment assistance loans.
Before we look at each program, here are the basic requirements you’ll typically need to meet. Individual lenders may have additional requirements, but these are a good starting point.
You must meet the IRS definition of a first-time homebuyer which is the 3 year rule of not owning a home.
Minimum Credit Score of 640
Yes, you’ll have to complete a homebuyer education course. And yes, there may be a quiz at the end. Don’t worry, it’s not nearly as scary as it sounds.
Your purchase price must be below the limits for the county you are purchasing in. Not all counties are the same.
Your income must be below the limits for the county you are purchasing in. Again, not all counties are the same.
The Florida Assist (FL Assist)
If you need help covering your upfront costs and don’t mind paying the assistance back when you sell or refinance, this program may be worth looking at.
Best for:
- Buyers who plan to stay awhile
- Buyers who don’t mind paying it back when they sell
- Buyers needing help with upfront costs
Up to $10,000 on FHA, VA, USDA loans and Conventional loans.
0% Interest Rate
Deferred second mortgage
No monthly payments required
This is not forgiven. So, while you are not required to make payments, there could be a situation that you have to repay it. One situation is you sell your house. Make sure you tell your agent about this 2nd mortgage, so it can be factored into your payoff.
The Florida Homeownership Loan Program (FL HLP) Second Mortgage
Best for:
- Buyers who plan to stay awhile
- Buyers who want to pay some of the balance monthly, so less to pay back later
- Buyers who don’t mind paying it back when they sell
- Buyers needing help with upfront costs
Up to $12,500
3% fully-amortizing, second mortgage
30-year term
This one you will have a monthly payment of $52.70. That payment has to be factored in your debt to income ratio. That’s why we want to make sure you get pre-approved ahead of time, knowing where all the funds are coming from. If you sell this home, you will owe the unpaid amount, so again make sure you mention this to your agent, so it can be factored in. If you refinance the loan, the unpaid amount is also due.
3%, 4% and 5% HFA Preferred and HFA Advantage PLUS Second Mortgage
Best for:
- Buyers planning to stay five years or longer
- Buyers wanting a forgivable option
Borrowers utilizing these down payment and closing cost programs receive 3%, 4% or 5% of the total loan amount in a forgivable second mortgage. This second mortgage is forgiven at 20% a year over its 5-year term.
0% Interest Rate
No payments required
So this one is forgiven after 5 years, which means if you sell at year 6, you don’t have to pay it back. Let’s say you sell before the 5 years, 20% per year is forgiven. Which is still not bad, since you won’t have to pay all of it back.
Personally, I like this program for buyers who plan to stay in their home for at least five years because a portion is forgiven every year. If you already know this is going to be your forever home or somewhere you’ll stay for a while, it’s definitely one to discuss with your lender.
The Florida Hometown Heroes Program
Best for:
- Eligible occupations
- Buyers wanting the largest assistance available
This one is a first come, first serve program. There is a limited time that once the funds are depleted, the program closes until the next fiscal year, which is not January to December. For example in 2025, the program opened August 25. February 27 2026 it was announced that all the funds were fully committed.
Because funding is limited, it’s important not to wait if you think you qualify. Once the funds are committed, the program closes until the next funding cycle.
5% of the Total Loan Amount (Min-$10,000/Max-$35,000) on FHA, VA, USDA loans and Conventional loans.
0% Interest Rate
Deferred second mortgage
No monthly payments required
This is not forgiven, so you will have to repay it due to certain situations, 2 examples are refinancing or selling. This is limited to certain borrowers: Click here to see the list.
Which Program Is Best?
There isn’t one program that’s right for everyone.
The best option depends on:
- Your credit score
- Your income
- Your county
- How long you plan to stay
- Whether you qualify for Hometown Heroes
- Your debt-to-income ratio
That’s why getting pre-approved before house hunting is so important.
The good news is you don’t have to figure this all out on your own.
When I help buyers purchase a home, one of the first things we do is connect you with a trusted local lender who can determine which loan and down payment assistance programs you qualify for. Every buyer’s situation is different, and the best program for you may not be the same one that’s best for someone else.
If you’re thinking about buying a home in Northeast Florida and want to see what options are available, I’d be happy to point you in the right direction. Contact me to get started!
