If you’re planning to buy your first home in Florida, you’re in luck. Florida has several first-time homebuyer programs that can help you achieve homeownership affordably. Programs can include low interest rates on your mortgage in addition to lower down payment and mortgage insurance requirements. You may also be eligible for a second mortgage that can help with a down payment or closing costs. Read on to see what you might be eligible for.
Quick Look: Best First-Time Homebuyer Programs in Florida
- Best for Fixed-Rate Mortgages: Florida Housing First Time Homebuyer Program
- Best for Frontline Workers: Florida Hometown Heroes Program
- Best for Down Payment Assistance: Florida Assist Second Mortgage Program (FL Assist)
- Best for Forgivable Down Payment Assistance: HFA Preferred and HFA Advantage PLUS
- Best for Low-Interest Second Mortgage: Florida Homeownership Loan Program (FL HLP)
- Best for Florida Military Service Personnel and Veterans: Salute Our Soldiers Military Loan Program
Best First-Time Homebuyer Programs in Florida
Florida offers several programs for its residents. This includes programs that can give you access to more affordable mortgages in addition to closing cost and down payment assistance.
Best for Fixed-Rate Mortgages: Florida Housing First Time Homebuyer Program
This program offers 30-year fixed-rate mortgages to qualifying first-time homebuyers. The loans are offered through lenders that participate in the program throughout the state. First-time homebuyers who qualify can also participate in a secondary mortgage program along with this program to get assistance with down payment and closing costs.
- Credit score: 640
- Income limit: Varies by county
- Loan limit: Varies by county
Pros
- Offers fixed-rate mortgages
- Can be used with other programs
- Available in all counties
Cons
- Has income limits
- Has purchase price limits
- Requires a relatively high minimum credit score
Best for Frontline Workers: Florida Hometown Heroes Program
The Florida Hometown Heroes Program provides down payment and closing cost assistance to eligible first-time homebuyers. The funds come in the form of a 0% nonamortizing 30-year deferred second mortgage. To qualify for this program, the homebuyer must be a frontline community worker such as a law enforcement officer, firefighter, educator, healthcare professional, an active military member or a veteran.
- Credit score: 640
- Income limit: 159% of the county’s area median income
- Loan limit: Up to 5% of the first mortgage loan amount with a maximum of $35,000
Pros
- Lower interest rates on the first mortgage loan
- Can borrow up to 5% of first mortgage loan amount
- Long-term loan
Cons
- The loan is not forgivable
- Payment is due in full if the property is sold, the deed is transferred or the homebuyer no longer occupies the home as their primary residence
- Payment is due in full if the first mortgage is refinanced
Best for Down Payment Assistance: Florida Assist Second Mortgage Program (FL Assist)
FL Assist is a down payment and closing cost assistance program. It offers up to $10,000 on conventional loans and loans backed by the Federal Housing Authority (FHA), Veterans Affairs (VA) and U.S. Department of Agriculture (USDA). These loans are deferred, nonamortizing second mortgages.
- Credit score: 640
- Income limit: Varies by county
- Loan limit: Up to $10,000
Pros
- Available for conventional and government-backed loans
- 0% interest rate
- Deferred repayment as long as the homebuyer owns the property
Cons
- Only offers up to $10,000
- The loan is not forgivable
- Payment is due in full if the property is sold, transferred, the owner moves out or the mortgage is paid off or refinanced
Best for Forgivable Down Payment Assistance: HFA Preferred and HFA Advantage PLUS
This program provides borrowers with a forgivable second mortgage that can be used for down payment and closing cost assistance. The loan is forgiven at 20% per year over its five-year term. However, it’s only available with Florida Housing’s conventional HFA Preferred for TBA or HFA Advantage for TBA first mortgage products.
- Credit score: 620
- Income limit: Varies
- Loan limit: 3%, 4% or 5% of the first mortgage amount
Pros
- The loan is forgivable
- Provides up to 5% of the first mortgage in down payment assistance
- Only requires you to live in the home with your first mortgage for five years before the second mortgage is forgiven
Cons
- Only available with certain mortgage programs
- Loan amounts are smaller than with some other second mortgage programs
Best for Low-Interest Second Mortgage Loan: Florida Homeownership Loan Program (FL HLP)
This is a second mortgage program that offers up to $10,000 in down payment and closing cost assistance. The loan is repaid over a 15-year term at a 3% interest rate. If the borrower sells the home or refinances the property before the 15-year term ends, the balance of the loan becomes due in full.
- Credit score: 640
- Income limit: Varies by county
- Loan limit: $10,000
Pros
- Can be repaid at a fixed low interest rate
- Is repaid over 15 years
- Provides up to $10,000, which is more than some other programs
Cons
- The loan is not forgivable
- You must repay the loan in monthly installments
- The remaining balance is due in full if you sell or refinance before the term ends
Best for Florida Military Service Personnel and Veterans: Salute Our Soldiers Military Loan Program
This program is exclusively available to military service personnel and veterans. It provides a fixed 30-year first mortgage loan at a low interest rate. There are also several down payment assistance programs available with it.
- Credit score: 640
- Income limit: Varies by county
- Loan limit: Varies by county
Pros
- Available in all Florida counties
- Has over 250 participating lenders
- Can be used with down payment assistance programs
Cons
- Only available for qualifying military members and veterans
- Down payment and closing cost assistance are limited
Best National First-Time Home Buyer Programs
In addition to statewide programs for Florida residents, there are national first-time home buyer programs for you to consider. These government-backed programs are all available in the state of Florida:
Best for Lower Credit Score Requirements: FHA Loans
FHA loans get their name from the Federal Housing Administration, the organization that they are offered through. The loans are good for people with lower credit scores because the minimum credit score requirement is only 580. They can be used on single-family units or multifamily units of no more than four units.
- Credit score: 580
- Income limit: Varies by location
- Loan limit: Varies by location
Pros
- Low fixed interest rates
- Minimum down payment requirement of 3.5%
- Can be used with down payment assistance programs
Cons
- The property being purchased must meet the FHA’s minimum property requirements
- Borrowers need to be aware of FHA loan amount limits
- Borrowers may have to pay an upfront and an annual mortgage insurance premium
Best National FHA Lender: Rocket Mortgage®
- Best For:Online MortgagesVIEW PROS & CONS:securely through Rocket Mortgage's website
Rocket Mortgage is a popular online lender known for its wide variety of mortgage products. The benefits of this lender include a streamlined online application and approval process. There are also loan experts available from Rocket Mortgage to help borrowers navigate their options and choose the right mortgage product for their needs.
- Credit score: 580
- Income limit: Varies by location
- Loan limit: Varies by location
Pros
- Low fixed interest rates
- Minimum down payment requirement of 3.5%
- Can be used with down payment assistance programs
Cons
- The property being purchased must meet the FHA’s minimum property requirements
- Borrowers need to be aware of FHA loan amount limits
- Borrowers may have to pay an upfront and an annual mortgage insurance premium
Best for Military Families: VA Loans
VA Loans are mortgages that are guaranteed by the Veterans Benefits Administration. They are available exclusively to qualifying service members, veterans, and surviving spouses. These loans make homeownership more attainable and affordable for eligible borrowers.
- Credit score: 600
- Income limit: Varies by location
- Loan limit: Varies by location
Pros
- No private mortgage insurance requirements
- Low interest rates
- Affordable closing costs
Cons
- Some lenders may require a down payment
- There may be a funding fee for first-time borrowers
- Some property restrictions can impact costs and eligibility
Best National VA Lender: Veterans United
Veterans United is a mortgage lender that is committing to helping military families achieve responsible homeownership. The lender offers homebuyer education resources and support. The company also works with military advisers to ensure top-notch customer support.
- Credit score: 600
- Income limit: Varies by location
- Loan limit: Varies by location
Pros
- No private mortgage insurance requirements
- Low interest rates
- Affordable closing costs
Cons
- Some lenders may require a down payment
- May be a funding fee for first-time borrowers
- Some property restrictions can impact costs and eligibility
Best for Rural Homeownership: USDA Loans
USDA loans are government-backed loans that may be available to homebuyers in rural and some suburban areas. The loans are backed by the U.S. Department of Agriculture and guaranteed by the USDA Rural Development Guaranteed Housing Loan Program. The Department of Agriculture offers some USDA loans, and others are available through participating lenders.
- Credit score: Varies by lender
- Income limit: No more than 115% of the area’s median income
- Loan limit: Varies by area
Pros
- USDA loans can be used to purchase property and build a home
- There is no down payment requirement
- There is no private mortgage interest requirement
Cons
- Only available for properties in areas defined by the program
- Can only be used for primary residences
- You must adhere to the income limits based on the area where you’re buying the home or property
Best National USDA Lender: CrossCountry Mortgage
- Best For:Self-employed BorrowersVIEW PROS & CONS:securely through CrossCountry Mortgage's website
CrossCountry Mortgage is a lender that offers a wide variety of mortgage options. This includes conventional loans, VA loans, FHA loans, jumbo mortgages and USDA loans. The lender also offers refinancing, home equity and renovation products.
- Credit score: 640
- Income limit: Debt-to-income ratio of 41% or less
- Loan limit: Varies by location
Pros:
- Offers USDA Rural Streamline Refinance
- Offers USDA Renovation Loans
- Participates in a variety of loan programs
Cons:
- Doesn’t offer online quotes
- No live chat feature for customer service
- Current mortgage rates are not available online
Qualification Requirements
- Borrowers must be within the program’s designated income requirements to qualify.
- Borrowers must be able to show credit history and meet minimum credit requirements.
- There may be limits on property type.
- Borrowers usually have to plan to use the residence as their primary residence.
- There are often maximum loan amounts with first-time home buyer programs.
How to Apply for a Program
- Select the program you want to apply for.
- Find a lender who participates in the program.
- Submit your application to the lender.
- Give the lender permission to access your credit report.
- Submit other documents as requested by the lender.
- Complete the homebuyer education course if required.
Choosing a First-Time Home Buyer Program
If you’re a first-time homebuyer in Florida, there are several options for you to consider. When choosing a program, think about the type of home you need for your family and where you want to live. From there, you can narrow your options and find the program that will best meet your budget. Be sure to thoroughly read through the eligibility requirements before you apply for any program.
Frequently Asked Questions
How much is a downpayment for a first-time homebuyer in Florida?
It varies by program — some don’t require a down payment.
What are the benefits of being a first-time homebuyer in Florida?
As a first-time homebuyer, you may be eligible for programs that offer low down payments, low interest rates and closing cost assistance.
How to find what Florida first-time homebuyer program you qualify for?
You can start by looking at the Florida Housing Finance Corp. website.