First-Time Home Buyer Florida: Programs, Grants And Other Assistance

As a first-time home buyer in Florida, several questions may swirl in your mind: Where will you live? What type of home do you prefer? And likely most importantly, how will you finance your home purchase? 

But the financing part of buying a house in Florida doesn't have to keep you up at night. Down payment assistance programs can lighten your mental and financial load. Let's walk through first-time home buyer programs to help you buy a home in the Sunshine State.

Who Is Considered A Florida First-Time Home Buyer?

The qualifications for first-time home buyers in Florida use the Internal Revenue Service (IRS) definition: an individual (and spouse, if applicable) who has not owned another principal residence for 3 years prior to the date of purchase of the principal residence. However, others seeking homeownership under other circumstances may also qualify:

• Borrowers who previously owned a mobile home within the last 3 years
• Individuals who owned a home if their spouse didn't
• Renters with a different home, used as an investment property
• Divorced single parents who owned a home in the last 3 years with a former spouse

Typical Requirements For Florida First-Time Home Buyer Programs

We'll look at the typical requirements for first-time home buyer programs in Florida, but first, let's define some of these requirements:

• Credit score: A three-digit number that shows how well you've paid off your debts in the past.
• Debt-to-income ratio (DTI): A percentage that tells lenders the amount you spend on monthly debt payments against the amount you have coming into your household. You can calculate it by adding your monthly minimum debt payments and dividing by your monthly pretax income.

Note that each Florida first time home buyer program has its own specific guidelines, so you'll need to research the qualifications. Your lender can also answer specific questions about how to qualify and help you determine which program makes sense for your situation.

First-Time Home Buyer Programs And Grants In Florida

Let's look at some first-time home buyer programs in Florida you may want to consider.

Florida Housing’s First Time Homebuyer (FTHB) Program

Florida Housing's First Time Homebuyer (FTHB) Program offers low fixed-rate 30-year mortgages for first-time home buyers. Home buyers must qualify with income and purchase price limits for the county where they plan to buy a home. Home buyers may also participate in a second mortgage program to get help with down payment and closing costs.

• Type of assistance: The FTHB Program is a loan program that offers 30-year mortgages for qualified home buyers.
• How to qualify: You must have a minimum 640 credit score, work with a participating program lender and participate in a home buyer education course. You must also have a purchase price and income below the limits for the county in which you purchase. You must also meet the IRS definition of a first-time home buyer.
• Benefits: The FTHB Program opens the door to homeownership for first-time home buyers who may have challenges coming up with a down payment and closing costs.
• Drawbacks: You must meet some qualifications – not just anyone can decide they want to participate in the program.

Hometown Heroes Housing Program

The Hometown Heroes Housing Program makes homeownership affordable for certain members of the first-time home buyers Florida workforce, such as firefighters, educators, law enforcement officers, health care professionals, childcare specialists and active or retired military members.

• Type of assistance: Qualified home buyers can purchase a primary residence with a lower interest rate and up to 5% of the first mortgage loan amount ($35,000 max) in down payment and closing cost assistance.
• How to qualify:

• You must work 35+ hours per week and hold full-time employment with a Florida employer
• Be a first-time home buyer
• Plan to live in the home you will purchase
• Live in the correct property type, such as a single-family residence, townhouse, condo, villa, 2- to 4-unit structure or manufactured home
• Attend a home buyer education course
• Have a minimum 640 credit score and a debt-to-income (DTI) ratio below 50%
• Earn below 150% of the area median income
• Work with a participating loan officer from Florida

• Benefits: You can get lower interest rates on FHA, VA, USDA loans and Fannie Mae or Freddie Mac first mortgage programs. You can also get reduced upfront fees and down payment and closing cost assistance.
• Drawbacks: The major drawback is that you must pay off the second mortgage when you sell your property. The Florida Hometown Heroes loan is also not forgivable, meaning that you cannot stop making payments on the loan. 

Florida Assist

This type of down payment assistance program covers up to $10,000 on conventional, FHA, VA and USDA loans. It also offers a 0%, nonamortizing, deferred second mortgage.

• Type of assistance: The $10,000 goes toward a down payment or closing costs with no interest in a deferred second mortgage.
• How to qualify: Your lender can help you understand the qualifications necessary to qualify for the Florida Assist program. You must also complete a home buyer education class, meet income and purchase price limits and meet mortgage and credit score requirements.
• Benefits: The $10,000 can go a long way toward a down payment or closing costs, and the 0% interest rate and no monthly payments can benefit first-time home buyers.
• Drawbacks: The Florida Assist program is a second mortgage, which means you put your home up as collateral on not one, but two mortgages. Down payment assistance is not available as a standalone program. Like the Hometown Heroes program, it is deferred, not forgivable. You must pay off the Florida Assist when you sell, transfer, satisfy the first mortgage, refinance the property or move.

Florida Homeownership Loan Program (FL HLP) Second Mortgage

The Florida Homeownership Loan Program (FL HLP) offers up to $10,000 on a 3% fully amortizing second mortgage (which means it's a regular payment), on a 15-year term.

• Types of assistance: You receive up to $10,000, which carries a monthly payment. It must be paid off within 15 years unless you move, refinance or transfer ownership to someone else.
• How to qualify: Meet income and purchase price limits, complete a home buyer education class, qualify for a mortgage loan and meet credit score requirements.
• Benefits: You can receive up to $10,000 in financial assistance.
• Drawbacks: You'll need to carry an extra monthly payment, $69.06, for 15 years as part of the FL HLP Second Mortgage program. You must pay the remaining unpaid balance in full – it's deferred except in the event of a sale, transfer of deed, satisfying the first mortgage or refinancing the property.

HFA Preferred and HFA Advantage PLUS Second Mortgage

The HFA Preferred and HFA Advantage PLUS program allows home buyers to receive 3% – 5% of their initial mortgage amount to use toward down payments and closing costs. The program offers a second mortgage forgiven at 20% per year over a 5-year term.

• Type of assistance: The program offers down payment and closing cost benefits as a percentage of the total loan amount. It also offers a 0% interest rate and no required monthly payments.
• How to qualify: Complete a home buyer education class, meet income and purchase price limits, qualify for a mortgage loan and meet credit score requirements. Your lender can help you determine the necessary qualifications.
• Benefits: This program allows forgiveness, meaning that you don't have to pay off the final amount for the second mortgage – it's forgiven at 20% per year over its 5-year term.
• Drawbacks: Home buyers can only use the "PLUS" part of the second mortgage with conventional first mortgage products, meaning that you must have a conventional mortgage (a mortgage that is not backed by the federal government).

National Programs Available To Florida First-Time Home Buyers

National programs might be better for your personal situation. The following national programs available to Florida first-time home buyers include:

• Department of Housing and Urban Development (HUD) housing: A HUD home is a foreclosed property originally purchased with an FHA loan and individuals can purchase them. To qualify for HUD homes, home buyers must be a U.S. citizen or have eligible immigration status. You must typically qualify with a 500 credit score, 2 years of work history and the funds to qualify for a mortgage. You must live in the home for at least 1 year after purchasing and not have bought a HUD home in the past 2 years.
• Government-backed home loans: Government-backed mortgages (FHA loans, VA loans, USDA loans) are also great options for first-time home buyers. They typically require lower down payments, have flexible credit score requirements and potentially lower interest rates. Check with your lender about whether one of these types of government-backed loans might align with your preferences and qualifications.
• Habitat For Humanity: First-time home buyers may also consider a Habitat for Humanity home. To qualify, you must demonstrate a need for safe, affordable housing, have low to moderate income (those whose income does not exceed 60% of the area median income as defined by HUD), partner through the process using sweat equity and agree to pay an affordable mortgage.

FAQs: First-Time Home Buyer Grants And Programs In Florida

Here are some frequently asked questions to consider before buying a house and moving to Florida.

Where can I find more information about first-time home buyer programs in my county?

You can learn more about loan programs in your county by using the Wizard. Input the number of people in your household and the county you plan to live in.

You can also learn about local resources on the HUD website. The HUD website lists statewide and regional programs and local sources by county. 

Do first-time home buyers need a down payment in Florida?

You may not need to come up with a down payment if you qualify for a down payment assistance program. However, it's important to read through all the requirements before you choose a down payment assistance program or first-time home buyer grants Florida. Your lender can also help you determine whether you need a down payment.

How much are closing costs in Florida?

Closing costs will vary depending on the program you opt into. First time home buyer programs Florida may help with closing costs, such as the HFA Preferred and HFA Advantage PLUS program. Some programs may offer more assistance with closing costs than others – look into each program to learn the details.

The Bottom Line

Being a first-time home buyer in Florida doesn’t have to be intimidating. There are plenty of resources and programs available. Your lender can help you choose what works for your situation.

Ready to get moving on buying your first home? Florida first time home buyers can apply for mortgage approval with Rocket Mortgage^®.