Statewide Programs
Administered by the Florida Housing Finance Corporation, available across the entire state for eligible first-time buyers.
Educational Guide for Florida Homebuyers
Making Homeownership
Attainable in Florida
A comprehensive guide to understanding how eligible buyers can utilize state and local assistance for down payments and closing costs.
Next Wave Mortgage, LLC | NMLS ID 2536820 • Not a government agency
What Is Down Payment Assistance?
Down payment assistance (DPA) programs bridge the gap between your savings and the upfront costs of purchasing a home. These programs vary by location, but generally fall into three categories.
Grants
Funds provided to the homebuyer that typically do not require repayment. These are highly competitive and often come with income restrictions.
Forgivable Loans
A 0% interest second mortgage forgiven over a set period (e.g., 5 years). If you occupy the home for the full term, the debt is erased.
Deferred Loans
A silent second mortgage requiring no monthly payments. The balance is simply repaid when you sell the home or refinance the mortgage.
Program Varieties
Assistance is available at multiple levels of government and community organizations. Funding availability is subject to change.
County & City
Local SHIP (State Housing Initiatives Partnership) funds managed by county governments. Often have strict residency rules.
Occupation Based
Targeted initiatives for essential workers including teachers, police officers, healthcare workers, and active military.
Non-Profit
Community organizations offering assistance to revitalize neighborhoods or assist low-to-moderate income families.
Qualification Criteria
While every program has unique guidelines, most Florida down payment assistance programs look for the following fundamental criteria:
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First-Time Homebuyer
Defined as someone who hasn't owned a primary residence in the last 3 years.
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Credit Benchmarks
Minimum credit score requirements typically range from 640 to 660.
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Income Limits
Household income must generally fall below specific limits based on county and family size.
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Primary Residence
The property must be intended as your main home. Investors need not apply.
Compatible Loan Types
Down payment assistance is layered on top of a standard mortgage.
FHA Loans
Popular for lower credit scores and flexible DTI requirements. A common pairing for DPA.
VA Loans
For Veterans and active military. DPA can help cover closing costs since VA loans are already 0% down.
USDA Loans
For properties in designated rural areas. Like VA, these are 0% down, so assistance helps with closing costs.
Conventional
Standard loans (Fannie Mae). Programs like HomeReady are specifically designed for DPA.
Available Assistance
There is no single answer, as amounts vary by program. However, assistance is generally structured in two ways:
Percentage Based
e.g., 3%, 4%, or 5% of the total loan amount provided to cover costs.
Fixed Amounts
e.g., $10,000, $25,000 or up to $35,000 depending on local program limits.
Note: Higher assistance amounts often come with slightly higher interest rates on the first mortgage. It's about finding the right balance for your budget.
Myths vs. Reality
Myth: "It's free money for everyone."
Reality: Most assistance is targeted at low-to-moderate income buyers. Much of it is in the form of loans that must eventually be repaid, not cash grants.
Myth: "I can't sell the house later."
Reality: You can always sell your home. However, if you have a deferred down payment loan, the balance of that loan will be paid from the proceeds of the sale.
Myth: "It takes too long to close."
Reality: When working with a lender experienced in Florida Bond and DPA programs, the timeline is often comparable to a standard loan closing.
The Path to Ownership
1
Prequalify
Determine your borrowing power and verify income eligibility.
2
Match Program
We identify the specific FL assistance programs that fit your profile.
3
Shop Homes
Look for homes within the price limits of your approved program.
4
Close
The assistance is applied at closing to reduce your cash to close.
Frequently Asked Questions
Is down payment assistance real in Florida?
Yes. Legitimate programs exist through the Florida Housing Finance Corporation, local county housing authorities (SHIP programs), and various nonprofits. They are designed to promote homeownership.
Do I have to repay down payment assistance?
It depends. Some programs are non-repayable grants. Others are 0% interest "forgivable" loans (forgiven after 5 years). Most common are "deferred" second mortgages that you only pay back when you sell the home, refinance, or pay off the main mortgage.
Can I combine assistance with FHA or VA loans?
Absolutely. Most state programs are specifically structured to work in conjunction with FHA, VA, USDA, and Conventional (HFA Preferred) first mortgages.
Is FLDownPaymentAssistance.com a government website?
No. This is an independent educational resource provided by Next Wave Mortgage, LLC to help consumers understand their options. We are not a government agency, nor are we affiliated with the Department of Housing and Urban Development (HUD) or the FHA.