Does Florida offer down payment assistance?

Yes. Florida Housing offers homebuyer programs and local governments may also provide assistance using programs such as SHIP. Availability and requirements vary.

Is down payment assistance free money?

Not necessarily. Some assistance is structured as a second mortgage or deferred loan. Always review the repayment terms.

Can the seller still pay closing costs if I use down payment assistance?

Potentially, subject to the rules of the first mortgage, assistance program and transaction.

Can I combine down payment assistance with an FHA loan?

Some Florida Housing programs can be paired with eligible FHA first mortgages. Program rules should be confirmed for the specific transaction.

Florida Down Payment Assistance Programs for Homebuyers

And for eligible borrowers, down payment assistance programs in Florida may help reduce the amount needed even further.

What Is Down Payment Assistance?

Down payment assistance, usually abbreviated DPA, is financing designed to help eligible buyers cover expenses associated with purchasing a home. Depending on the program, assistance may be structured as:

A second mortgage
A deferred-payment loan
A forgivable loan
A grant
Another form of subordinate financing

The terms matter. Two programs offering the same dollar amount can have very different repayment requirements.

Florida Housing Homebuyer Programs

The Florida Housing Finance Corporation offers first-mortgage programs that can be paired with eligible down-payment assistance. Depending on current program availability and borrower eligibility, financing can include conventional or government-backed mortgage options.

One important point: Florida Housing down-payment assistance is generally connected to an eligible Florida Housing first mortgage. It isn't typically something we simply attach to any mortgage from any lender. That's why the first mortgage and assistance should be evaluated together.

Florida Hometown Heroes

Hometown Heroes is one of Florida's best-known homebuyer-assistance programs. Qualified borrowers may receive assistance equal to 5% of their first mortgage amount, currently subject to a minimum of $10,000 and maximum of $35,000.

Because funding and eligibility requirements can change, buyers interested in the program should verify current availability before relying on the assistance in their home-buying budget.

Local SHIP Programs

Florida also distributes housing funds through the State Housing Initiatives Partnership, commonly called SHIP. Local governments can use SHIP funding for housing strategies that may include down-payment and closing-cost assistance.

This is where things become very location-specific. A program available to somebody purchasing in Hillsborough County may be different from one available in Pinellas, Pasco, Polk, Manatee or another Florida county. Funding can also open, close or become depleted.

If you're interested in local assistance, we'll look at programs based on the actual location where you're planning to purchase.

You May Not Need Assistance

This sounds strange coming from somebody discussing down-payment assistance, but it's important. DPA isn't automatically the best choice simply because it's available.

Consider a buyer who has enough savings to make a modest down payment and still maintain healthy reserves. If using an assistance program results in less attractive first-mortgage terms or creates an additional lien with repayment restrictions, it may or may not be worthwhile.

We should compare:

Option A: Use assistance and preserve more cash.
Option B: Use personal funds and potentially obtain different first-mortgage pricing.

Then evaluate the monthly payment and long-term cost. Our mortgage calculator can help model both scenarios.

Other Ways to Reduce Cash Needed

Down-payment assistance isn't the only tool available. Depending on the transaction, we may also consider:

Seller-paid closing costs
Lender credits
Gift funds
Low-down-payment conventional financing
FHA financing
VA financing
USDA financing

Sometimes combining the right mortgage with negotiated seller concessions accomplishes the goal without using a formal DPA program.

Are Down Payment Assistance Programs Only for First-Time Buyers?

Many assistance programs include first-time buyer requirements, but not every program works exactly the same way. And "first-time homebuyer" doesn't always mean someone who has never owned a home. Some programs use a lookback period when determining first-time homebuyer status.

Always evaluate eligibility under the specific program rather than assuming you qualify — or don't qualify — based on the name. See our first-time home buyer loan guide for more.

Start With the Mortgage Strategy

If you need assistance with your down payment, tell me that upfront. There is nothing unusual about it. What I want to determine is:

Which programs you're eligible for.
How much assistance they provide.
What obligations come with the assistance.
How the first-mortgage terms compare.
Which option leaves you in the strongest financial position after closing.

That's much more useful than simply searching Google for the program advertising the biggest dollar amount. Scott Kepler has been helping Florida homebuyers navigate these decisions since 2001.

Down Payment Assistance Programs for Florida Homebuyers