If you’re a Florida resident looking to buy your first home, you may have put off this milestone until you’re better able to afford it. Fortunately, Florida offers several first-time homebuyer programs, which can provide assistance for down payment and closing costs.
While most states offer similar programs, many come with strict eligibility requirements and are only available to certain individuals or communities. Florida’s programs fall into this camp, coming with income limits and credit score requirements.
- What are homebuyer programs?
- Who qualifies as a first-time homebuyer in Florida?
- How do these programs work?
- Other first-time homebuyer loans, programs
- Frequently asked questions
What are homebuyer programs?
Homebuyer programs help people offset some of the high up-front costs that come with buying a home. These programs often provide fixed-rate loans, as well as down payment and closing cost assistance to qualifying borrowers. These programs are typically based on traditional loan programs available to all buyers, such as conventional loans, Federal Housing Administration (FHA) loans, Department of Veterans Affairs (VA) loans, and U.S. Department of Agriculture (USDA) loans.
Florida’s first-time homebuyer programs are associated with the Florida Housing Finance Corporation (commonly referred to as Florida Housing). Within Florida Housing, the below statewide down-payment assistance programs are available:
| Program | Minimum credit score required | Assistance amount | Down-payment program assistance details |
|---|---|---|---|
| Florida Assist | 640 | Up to $10,000 on government-backed loans, or $7,500 on conventional loans | 0% APR deferred second mortgage |
| Florida Homeownership Loan Program | 640 | $10,000 | 15-year, 3% APR second mortgage |
| HFA Preferred and HFA Advantage PLUS | 640 | Up to 5% of the mortgage amount | Forgivable second mortgage |
| Salute our Soldiers PLUS | 640 | Up to 5% of the mortgage amount | Forgivable second mortgage |
Who qualifies as a first-time homebuyer in Florida?
To qualify for a first-time homebuyer program in Florida, you must meet the IRS definition of a first-time homebuyer, meaning either you haven’t purchased a home before, or you haven’t owned property in the last three years. You must also meet certain income limits for the county you’re purchasing in.
Florida Housing has an online tool that can help you determine if you’re eligible for assistance. You’ll enter your income, the number of people in your household, and the county you want to buy in. The home’s purchase price also needs to fall below the limits for the county you’re buying in. Properties can include single-family homes, townhomes, two- to four-unit homes (in which you reside in one unit), approved condominium projects, and modular or mobile homes.
How do these programs work?
Florida’s first-time homebuyer programs offer 30-year, fixed-rate first mortgages to new homeowners via approved lenders throughout the state. Program requirements include having a minimum credit score of 640, working with an approved participating mortgage lender, and completing a homebuyer education course.
What is the process after being approved?
Once you’ve been approved for a homebuyer program, follow these seven steps to get a mortgage:
- Find a lender: Once you’re approved for a homebuying program, you’ll need to find a Florida Housing-approved lender. You can use the Homebuyer Loan Program Wizard to find a lender.
- Get pre-approved: After you’ve found a lender, they can help you get pre-approved for a mortgage. Mortgage pre-approval is a letter from a lender that states they’re willing to lend to you up to a certain amount based on your credit score and history. Getting pre-approved makes you a more attractive buyer, as it shows sellers that you’re serious about buying a home.
- Set a budget: Before you start shopping for a home, you’ll need to know what you can afford. Your lender can tell you how much you can afford and guide you through the home-buying process.
- Take a homebuyer education class: For Florida homebuyer programs, you’ll need to take an approved education course provided by your lender before you can purchase a home.
- Chat with a real estate agent: Your realtor will show you homes within your price range and help you find the right one for you and your family. Then they’ll write up your purchase offer, advise you on appraisals and inspections, and submit your offer for you.
- Submit a loan application: Once your offer has been accepted, you’ll submit a formal loan application to your lender. You’ll need to provide documents like a government-issued photo ID, recent tax returns or W-2s, bank statements, and proof of assets.
- Close on the loan: At closing, you’ll sign final documents and pay any closing costs, like your down payment, appraisal, and title search fees. Depending on the type of homebuyer program you applied for, some or all of these costs may be covered by your lender. Once the paperwork is signed, you’ll officially be a new homeowner.
Other first-time homebuyer loans and programs
Florida also offers the Florida Hometown Heroes Housing Program, which aims to provide affordable homeownership options for eligible frontline community workers. To qualify for this program, you’ll need to work in one of the following fields:
- Law enforcement
- Firefighting
- Education
- Childcare
- Healthcare
- Current or former military personnel
The Hometown Heroes program includes down payment and closing cost assistance to first-time homebuyers who meet income qualifications in the communities where they work and serve.
In addition to lower rates on FHA, VA, USDA, and Fannie Mae or Freddie Mac first mortgages, this program also offers reduced upfront fees and up to 5% of the first mortgage loan amount (maximum of $25,000) in down payment and closing cost assistance, which comes as a 0% APR, non-amortizing, 30-year deferred second mortgage.
Visit the Florida Housing website to review eligible occupations and income and purchase price limits.
Frequently asked questions
Do I qualify as a first-time homebuyer in Florida?
First-time homebuyer program participants in Florida must meet the IRS definition of a first-time homebuyer. To qualify as a first-time homebuyer, you must not have either purchased a home before or owned property in the last three years.
What are the income requirements to qualify for a first-time homebuyer program in Florida?
Income requirements can vary depending on the number of people in your household and the county you’re trying to purchase in. Your lender can help you narrow these details down when you’re ready to apply.
How high of a down payment will I need to make to buy a house in Florida?
Outside of down payment assistance programs, most lenders will require a minimum 20% down payment if you want to avoid having to buy private mortgage insurance (PMI). However, the minimum required down payment for FHA loans can be as low as 3.5% to 10%.
How much down payment assistance could I receive in Florida?
Down payment assistance amounts can vary by program, but you may get enough financial help to cover your entire down payment, as well as some of your closing costs.
Does Florida have first-time homebuyer programs for military personnel or veterans?
Yes, the Florida Hometown Heroes Housing Program is a first-time homebuyer program for eligible frontline community workers. Eligible professions include law enforcement officers, firefighters, educators, childcare employees, and healthcare workers, as well as active military personnel or veterans.