— Buying tools
First-time buyer programs.
Florida is one of the most program-rich states in the country for first-time and workforce buyers. Hometown Heroes, FHA, USDA, VA, conventional 97%, plus county-level DPA. Here's the plain-English roundup so you can see what actually fits.
Florida Hometown Heroes
Who qualifies. Florida-employed workforce (teachers, nurses, first responders, healthcare, military, and many more). Income capped at ~150% of area median income.
What you get. Up to 5% of the loan amount (capped at $35,000) for down payment + closing costs, structured as a 0% second mortgage forgiven over time.
Worth knowing. Eligibility list expanded significantly in 2023 — broader than most agents realize. Always worth running.
FHA loan
Who qualifies. First-time and repeat buyers. Credit score as low as 580 with 3.5% down (500-579 with 10% down). Income limits do not apply.
What you get. Lower down payment, more forgiving credit standards, gift funds allowed for the entire down payment.
Worth knowing. Trade-off: mortgage insurance premium (MIP) typically stays for the life of the loan. Plan to refinance to conventional once you reach 20% equity.
USDA Rural Development
Who qualifies. Property must be in a USDA-eligible area (parts of Central Florida outside the urban core — Polk, parts of Hernando, Pasco, Lake — qualify; check the USDA map). Income capped by household size.
What you get. 0% down payment. Loan funded by USDA. Lower mortgage insurance than FHA.
Worth knowing. Loud-and-clear unknown to most buyers. If you are open to the suburbs and exurbs of Tampa or Orlando, this is worth checking.
VA loan
Who qualifies. Veterans, active duty, National Guard/Reservists with enough service time, and qualifying surviving spouses.
What you get. 0% down, no PMI, competitive rates, loan fee can be financed into the loan. Eligibility is reusable.
Worth knowing. Florida is one of the most VA-friendly states. Veterans-only programs stack on top (county property-tax exemptions, statewide property-tax discounts).
Conventional 97% loan (Fannie/Freddie)
Who qualifies. First-time buyer (defined as not having owned in the past 3 years) or repeat buyer with the HomeReady / Home Possible programs. Income limits apply for the income-restricted variant.
What you get. Only 3% down. PMI required but drops off automatically at 78% LTV (unlike FHA).
Worth knowing. Often the best mix for first-time buyers with decent credit — lower long-term cost than FHA once PMI burns off.
Local + county DPA
Who qualifies. Varies — Hillsborough, Pinellas, Pasco, Orange, Polk, and several Central Florida cities each run their own assistance programs. Many are income-limited.
What you get. Anywhere from $5K to $50K in down-payment + closing-cost assistance, structured as a forgivable second or a deferred loan.
Worth knowing. These run out of funding throughout the year. If you qualify, apply early in the fiscal year (Florida fiscal year starts July 1).
The five mistakes I see most often
- 01Assuming you do not qualify because you are not a first-time buyer. Hometown Heroes and HomeReady have no first-time requirement.
- 02Pulling money out of retirement to make a 20% down payment when a 3-5% down program would have been better long-term.
- 03Missing the income limits by counting overtime or bonus pay your lender would not have counted anyway.
- 04Letting DPA application timelines blow up the contract — these programs add 1-2 weeks to closing; build it into the contract.
- 05Skipping the homebuyer-education class some programs require. Free, online, 4-6 hours; do it before pre-approval.
“Half my first-time buyers qualify for programs they did not know existed. Always run the eligibility check before you assume 20% down is the only path.”
— Ben Laube
Not sure which program fits?
Tell me your situation — household income, profession, where you want to live, and whether you have owned before. I'll narrow it to the 1-2 programs actually worth applying for.