First-Time Homebuyer Programs in Florida

The down payment on a new home often presents the biggest hurdle for first-time homebuyers. In Florida, where the average home value is $393,698, a down payment of $78,740 is necessary to avoid private mortgage insurance.

Fortunately, first-time homebuyer programs in Florida can help you achieve homeownership. Mortgages that allow for lower down payments are also available, though they typically come with income requirements and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

Florida offers grants and loans to help first-time homebuyers cover down payment and closing costs. We compiled the first-time homebuyer programs offered by the Florida Housing Finance Corporation (FHFC) to help you find the best option for your particular needs and situation.

Through the Homebuyer Loan Program, the FHFC provides a 30-year fixed-rate first mortgage through participating lenders across Florida. Homebuyers can access FHA, FHA 203(k) (limited rehab), VA, USDA and conventional loans (Fannie Mae and Freddie Mac) through this program. Eligible properties include single-family homes, townhomes, 2 to 4-unit properties (with the buyer residing in one unit), condos (in approved projects) and modular or mobile homes built after 1994.

The Florida Assist (FL Assist) program offers up to $10,000 in down payment assistance, which can be applied toward FHA, VA, USDA or conventional loans. This assistance is provided in the form of a second mortgage with a 0% interest rate, meaning that no additional interest will accrue. There are no monthly payments required on the second mortgage. Instead, repayment is deferred until you sell the home, move or refinance your first mortgage.

The 3%, 4%, and 5% HFA Preferred and HFA Advantage PLUS Second Mortgage programs offer 3%, 4% or 5% of the total loan amount in down payment and closing cost assistance through a second mortgage. This loan is forgiven at 20% per year over a five-year term when used with Florida Housing’s conventional HFA Preferred for TBA or HFA Advantage for TBA first mortgage products. This means that if the homeowner remains in the home for at least five years, the loan will be fully forgiven, and no repayment will be required. Meanwhile, the PLUS Second Mortgage program is only available with a conventional first mortgage.

The Florida Homeownership Loan Program (FL HLP) provides up to $10,000 in down payment and closing costs assistance. This comes in the form of a fully amortizing second mortgage, with a 3% interest rate and a 15-year term. The FL HLP offers a structured payment plan with a monthly payment of $69.06, while the remaining principal balance is deferred. This balance becomes payable upon the sale, transfer, refinancing or when the borrower no longer occupies the home as their primary residence.

The Florida Hometown Heroes Program provides down payment assistance to eligible borrowers in specific professions, such as educators, health care workers and law enforcement officers. This assistance equals 5% of the total loan amount on FHA, VA, USDA and conventional loans and comes in the form of a deferred second mortgage with a 0% interest rate and no monthly payments. Repayment of the loan is only required when the property is sold, transferred, refinanced or when the homeowner no longer occupies the home as their primary residence.

Aside from statewide first-time homebuyer programs in Florida, there are also city-specific programs available to help you pursue homeownership in a city of your choosing. Check out the table below for some of the cities in Florida that provide first-time homebuyer programs for potential residents.

Zero-down-payment loan programs in Florida allow you to purchase a home without putting money down. USDA and VA loans are two government-backed options that require no down payment.

USDA loans are designed to assist rural and suburban homebuyers in obtaining affordable housing. They are issued by the U.S. Department of Agriculture through its Rural Development Guaranteed Housing Loan program, aimed at supporting those who might not qualify for conventional financing.

USDA loans offer several benefits, including zero down payment options, making them attractive to those who qualify. These loans are designed for low-to-moderate-income households and come with competitive interest rates. Borrowers must meet certain conditions, such as purchasing a home in an eligible rural or suburban area and using the property as their primary residence.

To qualify for a USDA loan, your property must be 2,000 square feet or less, and the area must have a population of fewer than 35,000 people. You must meet income limits that vary by location. For instance, Liberty County, Florida, has an income limit of $52,150, while the limit in Monroe County, Florida, is $95,450 for a four-person, low-income household.

VA loans are a type of mortgage issued by the U.S. Department of Veterans Affairs and are designed to help veterans, service members and their families purchase homes. These loans offer favorable terms and conditions for those who have served in the military.

VA loans provide several advantages, including the absence of a down payment requirement, which can significantly ease the financial burden for homebuyers. Unlike conventional loans, VA loans do not require private mortgage insurance (PMI), further reducing monthly costs. VA loans typically offer lower interest rates than private loans. As of November 2024, the APR for a 15-year fixed-rate VA loan in Florida is 6.12%, while for a 30-year fixed-rate VA loan, it is 6.35%.

To qualify for a VA loan, you must meet specific eligibility requirements, including the length of your service or service commitment, duty status and character of service. You must meet certain income limits, which vary depending on your location. A valid Certificate of Eligibility (COE) is also required to confirm your eligibility for a VA loan.

First-time homebuyers in Florida can take advantage of low-down-payment loan programs that allow them to finance their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA loans and conventional loans are often compared as the two most common types of mortgages. FHA loans require a minimum down payment of 3.5%, while conventional loans require as low as 3% for first-time homebuyers. Conventional loans typically have stricter credit score and debt-to-income ratio requirements than FHA loans.

As of November 2024, the current APR for a 15-year fixed-rate conforming loan in Florida is 5.92%. The APR for a 15-year fixed-rate FHA loan is 7.13%. APRs on FHA loans can be higher due to additional fees and costs associated with government-backed loans.

You can use our FHA vs. conventional loan calculator below to help you compare FHA and conventional mortgage programs and determine the best option for you.

We have answered frequently asked questions about first-time homebuyer programs in Florida to help you find the best option and move closer to homeownership.

Explore additional MoneyGeek resources for first-time homebuyers in Florida to help you with the homebuying process.