Down Payment Assistance Loan Programs

The Florida Hometown Heroes Loan Program helps eligible full-time Florida workers, servicemembers, and qualified veterans purchase a primary residence with down payment and closing cost assistance. The program may be paired with FHA, VA, USDA/RD, or conventional financing and can offer competitive first mortgage rates with reduced upfront costs.

Eligible borrowers may receive up to 5% of the total first mortgage loan amount, with a minimum assistance amount of $10,000 and a maximum of $35,000. Funds may be used toward the required down payment, eligible closing costs, and prepaid items, subject to current Florida Housing guidelines and funding availability.

Florida Assist, also called FL Assist, is a statewide Florida Housing down payment assistance program that helps eligible homebuyers reduce the upfront cash needed to purchase a primary residence. It provides up to $10,000 in assistance toward the down payment, eligible closing costs, and prepaid items when paired with an approved Florida Housing first mortgage.

The assistance is structured as a 0% interest, non-amortizing, deferred second mortgage. There is no monthly payment on the FL Assist second mortgage, and the balance does not accrue interest while the borrower continues to occupy the home as their primary residence.

FL Assist is not forgivable. Repayment is deferred until a triggering event occurs, such as sale, refinance, transfer of the property, payoff of the first mortgage, or when the borrower no longer occupies the home as a primary residence. It may be used with eligible FHA, VA, USDA/RD, and conventional Florida Housing first mortgage options.

HFA Preferred / Advantage PLUS is a Florida Housing conventional loan option that pairs an approved 30-year fixed first mortgage with a forgivable second mortgage for down payment and closing cost assistance. It is designed for eligible buyers who want conventional financing, reduced mortgage insurance, and assistance that may be forgiven over time.

Qualified borrowers may receive assistance equal to 3%, 4%, or 5% of the total first mortgage loan amount, depending on the selected program option and current availability. The second mortgage carries 0% interest and has no monthly payment. The balance is forgiven at 20% per year over five years, so borrowers who remain in the home for the full forgiveness period may owe nothing on the assistance.

Because the program uses conventional financing, borrowers may benefit from reduced mortgage insurance coverage compared with many standard low-down-payment options, and mortgage insurance may be cancellable once sufficient equity is reached, subject to loan guidelines.

The Florida Homeownership Loan Program (FL HLP) is a Florida Housing second mortgage option that provides additional down payment and closing cost assistance for eligible buyers using an approved Florida Housing first mortgage. Unlike deferred or forgivable assistance programs, FL HLP is a low-rate amortizing second mortgage with a small monthly payment.

FL HLP offers $12,500 in assistance as a 3% fully amortizing second mortgage with a 30-year term. The payment is designed to be modest, helping buyers access additional assistance while keeping the added monthly obligation relatively small.

Because the second mortgage carries a monthly payment, the payment must be considered when qualifying the borrower and may affect the debt-to-income ratio. The remaining unpaid balance becomes due if the home is sold, refinanced, transferred, the first mortgage is paid off, or the borrower no longer occupies the property as their primary residence.

Local SHIP and county/city housing programs provide down payment and closing cost assistance through participating Florida counties, municipalities, and housing agencies. These programs are locally administered, so assistance amounts, repayment terms, income limits, property requirements, and funding availability vary by location.

For homebuyers, local assistance may be offered as a grant, forgivable loan, deferred second mortgage, low-interest second mortgage, or repayable subordinate lien. In many cases, local programs may be layered with state assistance programs such as Florida Assist, Hometown Heroes, HFA Preferred PLUS, or FL HLP when program rules allow.

Examples include programs offered by Orange, Osceola, Seminole, Lake, Volusia, Polk, Brevard, Hillsborough, Pinellas, Miami-Dade, Broward, Palm Beach, and other Florida jurisdictions. Because each local program has its own rules, we review county and city options during pre-approval to identify every program the buyer may qualify for.

Many assistance programs work through a “silent” second mortgage — a subordinate loan that covers the FHA-required 3.5% down payment so the FHA first mortgage and assistance can combine for up to 100% Combined Loan-to-Value (CLTV). This can allow eligible buyers to close with no down payment while keeping the second mortgage in the background, often with no monthly payment depending on the assistance program.

The FHA first mortgage typically finances 96.5% of the purchase price, while the silent second covers the remaining 3.5% down payment requirement. Depending on the program, the second mortgage may be deferred, interest-free, forgivable after a required occupancy period, or repayable when the home is sold, refinanced, transferred, or no longer used as the borrower's primary residence.

This structure is especially helpful for buyers who have steady income and can qualify for the monthly mortgage payment but have not been able to save the full down payment. Program availability, credit score requirements, income limits, property eligibility, and repayment terms vary by assistance provider.