If you’re ready to buy a home, Florida first-time homebuyer programs can jump-start you on the road to homeownership. These programs offer affordable mortgages, down payment assistance and other help to qualifying Sunshine State homebuyers.
Here are the top Florida first-time homebuyer programs and their requirements, pros and cons. If one of these programs is a fit, it could help you get the keys to your dream home sooner and more affordably than expected.
The Florida Housing Finance Corp. has several first-time homebuyer programs to help you get an affordable mortgage and assist with down payment and closing costs. Here are the top Florida first-time homebuyer programs:
There are many federal and state first-time homebuyer programs and loans. The Florida Housing Homebuyer Program offers affordable mortgages and automatically qualifies participating borrowers for one of Florida’s down payment assistance (DPA) programs. This program offers various types of 30-year fixed-rate mortgage loans with approved, participating lenders in all 67 counties in the state. The Florida Housing Homebuyer Program is a good option for any Florida homebuyer with fair to good credit who needs a little extra help with a down payment and mortgage closing costs.
| Available throughout Florida No waiting to close; the program does not run out of funds or have a waiting list Offers many options, including conventional, FHA, VA and USDA loans Available for a variety of property types including single-family, townhomes and mobile homes Unlocks access to Florida's down payment and closing cost assistance programs | Has income and purchase-price requirements Must use an approved lender Cannot have owned a home in the past three years Borrowers with fair or poor credit may not qualify |
Florida Assist, also known as FL Assist, is one of several mortgage down payment assistance programs available to Florida first-time homebuyers. The cost of a down payment can be daunting, but this program helps qualifying buyers without a large savings nest egg to move into a new home. The Florida Assist program offers up to $10,000 as a 0%, deferred second mortgage. It’s available on conventional, FHA, VA and USDA loans. It’s a good option if you haven’t saved much money to put down on a home and need a sizable amount to cover a down payment and closing costs.
| No monthly payment 0% interest rate Works with conventional, FHA, VA and USDA loans Loan amount available may be higher than some other programs | Not forgivable Borrowers with fair or poor credit may not qualify Must be paid back in full immediately if borrowers sell, pay off, refinance or move |
The Florida Homeownership Loan Program, also known as Florida HLP, is another DPA program that can help homebuyers get into their own home faster. If you’re ready to buy a home but don’t have enough money saved for a down payment, this Florida program may help. It offers $10,000 as a 3% fully amortizing, 15-year second mortgage. It’s a good option for homebuyers who need help with a down payment and closing costs but can’t qualify for a deferred or forgivable second mortgage.
| Can help borrowers who don't qualify for deferred or forgivable second mortgage loans Low 3% interest rate Fully paid off in 15 years Loan amount may be higher than some other programs | Not forgivable Has monthly payment Second mortgage payment may be considered in debt-to-income ratio during underwriting Not a 0% loan Remaining balance must be paid back immediately if borrowers sell, refinance or move |
The FL PLUS programs — HFA Preferred and HFA Advantage PLUS — provide down payment and closing cost assistance in the form of a forgivable second mortgage for 3%, 4% or 5% of the total loan amount. The loan is forgiven at 20% a year over five years. It’s a good option for homebuyers who plan to live in their home for at least five years and would benefit from a forgivable loan, which can help you lower your monthly debt payments.
| 0% second mortgage interest rate No second mortgage payments required Fully forgivable loan Relatively short time to forgiveness | Has income and purchase-price limits Must own and stay in the home for five years for full forgiveness Loan amount may be lower than with some other programs, depending on amount of the first mortgage |
The Florida Hometown Heroes program offers a package of homebuying assistance for eligible community workers employed full-time in the state. The program matches participants with an affordable first mortgage with low interest rates and helps with down payment and mortgage closing costs through a 0% second mortgage. It’s a good option for frontline workers such as firefighters, teachers, law enforcement officers and active military members or veterans who wish to benefit from lower mortgage interest rates and need more down payment and closing cost assistance than is offered by other programs.
| Below-market interest rates on FHA, VA, RD, Fannie Mae or Freddie Mac first mortgages Reduced fees and closing costs on first mortgages Up to $35,000 (or 5% of loan) offered for down payment and closing costs as a 0%, non-amortizing deferred second mortgage No monthly payment on second mortgage | Limited to eligible public service workers Second mortgage amount becomes due in full immediately if you sell, refinance or move Second mortgage not forgivable |
To apply and qualify for a Florida first-time homebuyer program, use Florida Housing’s online tool to find an approved lender in your county. Then follow the lender’s process to apply for your mortgage and chosen DPA program.
Here are the minimum Florida first-time homebuyer program qualifications:
Some programs also have unique requirements. For example, the Hometown Heroes program is available only to homebuyers in eligible public service jobs or active military members or veterans.
Qualifying for one of these state programs requires a little legwork. Here’s a breakdown of the steps to apply for a Florida first-time homebuyer program:
The state of Florida offers a variety of programs to help first-time homebuyers swing the cost of a down payment and closing costs. Of the 192 DPA programs in Florida, almost 70% had funds available as of the last quarter of 2024, according to Down Payment Resource’s homeownership program index.
Requires repayment? Depends on the program
A deferred second mortgage, also known as a “soft second,” can help you cover a down payment and closing costs. You typically do not need to make payments on a deferred second mortgage unless you sell or refinance your home, and the loan may or may not be forgivable.
Requires repayment? No, unless you sell or move too soon
A forgivable second mortgage is a loan to help with a down payment and closing costs. You typically don’t need to make any payments, and the loan is forgiven after you live in the home for a certain period of time.
Requires repayment? No
A down-payment-assistance grant gives you a certain amount of money, usually a percentage of your home loan, to help with a down payment and closing costs. You don’t need to repay these funds.
Requires repayment? No
A mortgage credit certificate (MCC) gives qualifying first-time homebuyers a federal tax credit of up to $2,000 in mortgage interest paid yearly, plus a deduction for additional mortgage interest. The actual credit amount is determined by the mortgage loan amount and interest rate.
A down-payment assistance (DPA) program offers a path to homeownership for people who haven’t saved enough money to cover a down payment and closing costs. Many DPA programs are offered as second mortgage loans and may have income limits, timelines and repayment rules. For example, a forgivable loan may require you to live in the home for a certain number of years. If you sell your house or refinance your mortgage before that time period ends, you may have to pay back all or part of the loan.
The down payment you need to buy a house in Florida depends on the home cost, type of mortgage and whether you qualify for a DPA program. Looking at mortgage statistics can help you get an idea of how much you may need. In Florida, the average down payment for first-time homebuyers was $33,272 in 2023, according to the latest LendingTree first-time homebuyer study.
You can qualify for down payment assistance if you meet the Florida Housing requirements, which include not having owned the home you’ve lived in for the past three years, having a minimum credit score of 640, completing an approved homebuyer education class and working with an approved lender. Both your home purchase price and income must fall below set limits.
You must get a Florida Housing Finance Corp. first mortgage from a participating lender to qualify for down payment assistance. Start the process by using its Homebuyer Program Wizard, inputting the number of people in your household and your county. You’ll then get matched with down payment assistance programs, and you’ll see a “Find a Lender” button.
Conventional loans are mortgages not backed by a federal government entity such as the Federal Housing Administration, the Department of Veterans Affairs or the U.S. Department of Agriculture. There are different types of conventional loans, including fixed-rate loans and adjustable-rate mortgages (ARMs). Benefits may include competitive mortgage rates, while downsides may include a higher credit score threshold.
FHA loans are mortgages backed by the Federal Housing Administration (FHA). The benefits of an FHA loan may include easier qualification and lower down payments, and FHA loan rates typically are lower than conventional loan rates. Downsides to FHA loans may include lower maximum loan limits and having to pay mortgage insurance.
VA loans are mortgages backed by the Department of Veterans Affairs (VA). Veterans, service members and eligible surviving spouses may qualify for a VA home loan. VA loans offer special VA loan rates, limited closing costs, no down payment (though some lenders may require it) and no need to pay private mortgage insurance (PMI).
USDA loans are backed by the U.S. Department of Agriculture (USDA). Though not as common as FHA loans and VA loans, a USDA loan can be a good option for a qualifying homebuyer, offering payment assistance to lower-income residents in rural areas.
To find the right loan for you, consider factors like your credit score, income and the amount you have saved for a down payment and closing costs. Other criteria, such as whether you’re a veteran or live in a rural area, also may determine whether you qualify for certain types of loans.
| Loan program | Best for first-time homebuyers who: |
|---|---|
| Conventional | Have a credit score of 780+ to get the best rates, have middle to higher income and savings of up to a 20% down payment |
| FHA | Ideally have a credit score of 580+ (but can be as low as 500), have low to moderate income and need a lower down payment |
| VA | Qualify as a veteran, service member or surviving spouse and need a lower down payment or help with closing costs |
| USDA | Live in a rural area and ideally have a minimum credit score of 640, though some lenders may work with lower scores |
Home prices in Florida are rising slowly, up by just 1.02% from the end of 2023 to the end of 2024. Florida ranked 49th among U.S. states for home price increases last year. Unlike the previous year, Florida’s home price appreciation was significantly lower than the national increase in home prices of 4.5% last year. Florida’s housing market has seen a slowdown in purchases amid concerns about natural disasters and related insurance costs.
But one Florida metro area still is first in the country for home price increases. Home prices in Miami-Miami Beach-Kendall, the largest metro area in the state, rose 10.8% in 2024 from 2023. Another South Florida metro area just an hour’s drive north, West Palm Beach-Boca Raton-Boynton Beach, also saw a significant home price jump of 6.7% year over year.
In contrast, home prices in the Cape Coral-Fort Myers area fell 2.9% during that time, and it ranked 97th out of the 100 largest metro areas in the country for home price growth. That Gulf Coast community was hit hard by hurricanes Helene and Milton in 2024 while still recovering from 2022’s Hurricane Ian, which has affected housing prices.
The Florida Housing Finance Corp. no longer offers a mortgage credit certificate (MCC) program, but some local housing finance agencies may still have an MCC program that offers a tax credit to Florida first-time homebuyers. Furthermore, there is no longer a federal tax credit for first-time homebuyers nor is one available statewide.
Interest rates in Florida on both 30-year and 15-year fixed mortgages have climbed slightly since the start of 2024. The current expert mortgage rate predictions from LendingTree forecast that interest rates will remain above 6% in 2025.
