Home Buying 101: Florida Down Payment Assistance Programs

Updated on November 17, 2022: This story was originally published on October 4, 2018, and has been updated with new information.

Have you been shopping for a home in Florida and finding there just aren’t that many homes to look at? You are not alone – resale listings are down again in October, after steadily declining since mid-2022, meaning there simply aren't that many homes listed to purchase.

Becoming a homeowner is the quintessential American dream. Yet, many Florida first-time homebuyers tell us they are holding off on achieving their dream because of concerns about making a down payment. If a down payment is the final piece of the puzzle in achieving your new home dreams, we have good news!

First, the "need" to have a large sum of money for a down payment is a common misconception. There are mortgage programs available for first-time home buyers and military veterans that require 0% down. And, FHA home loans require a down payment of just 3.5% of the purchase price, making them an ideal option for both first-time and repeat homebuyers who have little cash saved for a down payment.

In addition, a number of Florida down payment assistance programs are available to help cover your down payment and other purchase costs. Combined with the affordable pricing on new homes designed for your life and built by Highland Homes in Florida, homeownership is easily within your reach!

We’ve rounded up the basics on Florida down payment assistance programs available when building your dream home with Highland Homes. Each program has its own requirements including household income and purchase price limits, which vary per program and per county, so the best way to determine which down payment assistance is the best fit for your needs is to speak with a lender who specializes in these programs, such as Home Solution Lenders, Inc.

Florida Housing Finance Corporation Programs

The Florida Housing Finance Corporation (FHFC) was created more than 40 years ago to assist in making housing opportunities affordable for Florida residents. They provide first mortgage programs and down payment assistance for Government (FHA, VA, and USDA) and Conventional mortgage loans. 

Please note, down payment programs cannot be combined - Your lender can help you determine which one program is the best for you.

• Who is eligible?
  • Generally, Florida first-time home buyers or those who have not owned their primary residence in the past 3 years
  • Purchasing a primary residence in Florida
  • Financing with a Florida Housing first mortgage loan
    • Down Payment Assistance is not available as a standalone product
    • Co-signers are not permitted
  • 640 minimum credit score
  • A homebuyer education class is required
  • Income and purchase price limits apply and vary per county - speak with an authorized lender to determine which program best suits your needs!
• Down Payment Assistance Programs:

  • The Florida Assist (FL Assist)

    • Up to $10,000 in down payment and closing cost assistance
    • 0% interest, 30-year deferred second mortgage
      • No monthly payment
    • Repaid upon sale, transfer, refinancing, satisfaction of the first mortgage, or you cease to occupy the home

  • The Florida Homeownership Loan Program (FL HLP) Second Mortgage

    • Up to $10,000 in down payment and closing cost assistance
    • 3% interest, full-amortizing, 15-year second mortgage
      • Carries a monthly payment of $69.06
    • Unpaid balance must be repaid upon sale, transfer, refinancing, satisfaction of the first mortgage, or you cease to occupy the home

  • HFA Preferred and HFA Advantage PLUS Second Mortgage

    • Available only with these first mortgage products:
      • Florida Housing’s conventional HFA Preferred for TBA or HFA Advantage for TBA
    • 3% or 4% or 5% of the sales price in down payment and closing cost assistance
    • 0% interest, non-amortizing, 5-year forgivable second mortgage
      • No monthly payment
      • Forgiven at the rate of 20% a year over its 5-year term
        • Forgiven after 5 years
    • Unpaid balance must be repaid upon sale, transfer, refinancing, or if you cease to occupy the home before the 5-year term is up

In addition, the FHFC offers special programs for hometown heroes, military personnel, and military veterans.

• Florida Hometown Heroes Housing Program

  • Available to eligible frontline community workers such as law enforcement officers, firefighters, educators, healthcare professionals, childcare employees, and active military or veterans
  • Up to 5% of the first mortgage loan amount (maximum of $25,000) in down payment and closing cost assistance
  • 0% interest, non-amortizing, 30-year deferred second mortgage
    • No monthly payment
  • Unpaid balance must be repaid upon sale, transfer, refinancing, or you cease to occupy the home
  • Additional benefits:
    • Lower than market mortgage interest rates on an FHA, VA, USDA, Fannie Mae, or Freddie Mac first mortgage
    • Reduced upfront fees
    • No origination points or discount points

• Salute our Soldiers Military Loan Program

  • Available to active military service personnel and veterans
  • Three down payment assistance choices:
    • The Florida Assist (FL Assist)
      • Up to $10,000 in down payment and closing cost assistance
      • 0% interest, 30-year deferred second mortgage
        • No monthly payment
      • Repaid upon sale, transfer, refinancing, satisfaction of the first mortgage, or you cease to occupy the home
    • The Florida Homeownership Loan Program (FL HLP) Second Mortgage
      • Up to $10,000 in down payment and closing cost assistance
      • 3% interest full-amortizing, 15-year second mortgage
        • Carries a monthly payment of $69.06
      • Unpaid balance must be repaid upon sale, transfer, refinancing, satisfaction of the first mortgage, or you cease to occupy the home
    • Salute our Soldiers PLUS Second Mortgage
      • 3% or 4% or 5% of the sales price in down payment and closing cost assistance
      • 0% interest, non-amortizing, 5-year forgivable second mortgage
        • No monthly payment
        • Forgiven at the rate of 20% a year over its 5-year term
      • Unpaid balance must be repaid upon sale, transfer, refinancing, satisfaction of the first mortgage, or if you cease to occupy the home before the 5-year term is up
        • Exception: Unpaid balance will be forgiven for active duty military wh are required to relocate and sell their property as a result
  • Additional benefits:
    • Lower than market mortgage interest rates
    • No upfront VA origination fee
    • Considers income and first-time homebuyer status only of the borrower (rather than all in the household)
    • Do not need to be a first-time buyers

HFA of Pinellas County

Home Key Program

• Who is eligible?
  • First-time home buyers - All borrowers and spouses, occupant or non-occupant
  • Purchasing a primary residence in Polk, Pasco, or Pinellas Counties
    • Must occupy the property within 60 days of closing
  • 660 minimum credit score
  • 45% maximum DTI
  • A homebuyer education class is required
  • Income limit:
    • Polk: $81,000 for 1-2 persons in HH, $93,553 for 3+ persons in HH
    • Pasco: $82,100 for 1-2 persons in HH, $94,415 for 3+ persons in HH
• Primary Mortgage:
  • FHA, VA or USDA 30-year fixed-rate mortgage through the HFA
  • Purchase price limit: $349,525
• Down Payment Assistance:
  • $10,000 in down payment, closing cost, and prepaid assistance, in Pasco and Polk Counties
  • 0% interest, 30-year deferred second mortgage
    • No monthly payment
  • Repaid upon sale, transfer, refinancing, satisfaction of the first mortgage, or you cease to occupy the home

Orange County HFA

Central Florida Homebuyer’s Dream Program

• Who is eligible?
  • First-time home buyers - All borrowers and spouses, occupant or non-occupant
  • Purchasing a primary residence in Osceola, Orange, Lake, or Seminole Counties
    • Must occupy the property within 60 days of closing
  • 640 minimum credit score
  • 45-50% maximum DTI (depending upon credit score and loan type)
  • A homebuyer education class is required
  • Income limit: $82,900 for 1-2 persons in HH, $95,335 for 3+ persons in HH
• Primary Mortgage:
  • FHA, VA or USDA 30-year fixed-rate mortgage through the HFA
  • Purchase price limit: $349,525
• Down Payment Assistance:
  • Up to $10,000 in down payment and closing cost assistance
  • 0% interest, 30-year deferred second mortgage
    • No monthly payment
  • Repaid upon sale, refinancing, satisfaction of the first mortgage, or you cease to occupy the home

HFA of Hillsborough County

Home Sweet Home Program

• Who is eligible?
  • First-time home buyers - All borrowers and spouses, occupant or non-occupant
  • Purchasing a primary residence in Hillsborough, Clay, or Brevard Counties, as well as the city of Jacksonville
    • Must occupy the property within 60 days of closing 
  • 640 minimum credit score
  • 45-50% maximum DTI (depending upon credit score and loan type)
  • A homebuyer education class is required
  • Required to reserve a Mortgage Credit Certificate (MCC)
    • This is a federal income tax credit used to reduce your income tax as long as the home is your principal residence!
  • Income limits in Hillsborough County
    • $80,500 for 1-2 persons in HH
    • $94,415 for 3+ persons in HH
• Primary Mortgage:
  • FHA, VA or USDA 30-year fixed-rate mortgage through the HFA
  • Purchase price limit: $349,525
• Down Payment Assistance:
  • Up to $25,000 in down payment and closing cost assistance, in Hillsborough County
  • 0% interest, 30-year deferred second mortgage
    • No monthly payment
  • Repaid upon sale, refinancing, satisfaction of the first mortgage, or you cease to occupy the home

HFA of Manatee County

• Who is eligible?
  • Anyone - NO first-time homebuyer requirement
  • Purchasing a primary residence in Manatee County
    • Must occupy the property within 60 days of closing 
  • 660 minimum credit score
  • 45-50% maximum DTI (depending upon credit score and loan type)
  • A homebuyer education class is required
  • Income limit: $135,600 (all household sizes)
• Primary Mortgage:
  • FHA, VA or USDA 30-year fixed-rate mortgage through the HFA
  • Purchase price limit: $349,526
• Down Payment Assistance Programs:

  • Single Family Program

    • Up to $10,000 in down payment and closing cost assistance
    • 0% interest, 30-year deferred second mortgage
      • No monthly payment
    • Repaid in full on the earlier of 30 years or upon sale, transfer, rental or other disposition of the property, refinancing, or satisfaction of the first mortgage

  • Key to Homeownership Grant Program

    • 3% of the sales price in down payment, closing cost, and prepaid assistance
    • No repayment!
• Additional benefits:
  • A Mortgage Credit Certificate (MCC) is also available through the HFA of Manatee County
    • This is a federal income tax credit used to reduce your income tax as long as the home is your principal residence!

With so many available options and unique requirements for each program, it’s important to talk to an expert to determine which program makes the most sense for your unique situation. We suggest contacting Home Solution Lenders, Inc., a Highland Homes Lender Partner and FHFC-approved Participating Lender.

Highland Homes builds new homes in Tampa Bay, Metro Orlando, Ocala, Sarasota-Bradenton, and Lakeland-Winter-Haven with pricing from the high $200's to $500's. For more information about building your dream home in Florida, visit the Highland Homes website or contact our New Home Specialists at 863-797-4999.

Programs available as of November 17, 2022. For informational purposes only and not a guarantee of rates, terms, or program availability.