25 First-Time Florida Home Buyer Grants and Programs in 2024: Ranked

Expert Answer: Hey Johnny. We specialize in down payment assistance for Florida homebuyers so you're in luck.

We've put together a list of every Florida first-time homebuyer grant in the state in 2024 and our Florida mortgage experts have ranked them for you!

And remember, if you need help figuring out what you're eligible for, we are happy to help!

In Florida, as of 2024, first-time homebuyers have access to 25 different programs that provide alternatives to the traditional 20% down payment.

These programs include cash grants, tax credits, and reduced mortgage rates, offering practical solutions for those looking to purchase their first home.

Remember, while each home assistance program has unique terms, the general qualifications include:

• Being a first-time home buyer according to the program's definition.

• Completing a home buyer education course.

• Adhering to specified income and purchase price limits.

• Purchasing a property in an approved area.

• Using the home as your primary residence.

Florida Hometown Heroes Program

The Florida Hometown Heroes Housing Program provides down payment and closing cost assistance to first-time, income-qualified homebuyers who work or serve in the Florida community where the home is being purchased.

The Florida Hometown Heroes Program offers substantial benefits and assistance for first-time homebuyers who work or serve in their local communities.

Key benefits of the program include up to $35,000 in assistance for down payments and closing costs, along with a lower first mortgage interest rate for eligible borrowers.

Additionally, no monthly mortgage insurance premiums (PMI) benefit those opting for FHA loans. This program is specifically tailored for purchasing a primary residence in the community where the borrower works or serves.

To be eligible, applicants must be first-time homebuyers employed in or serving the community where they intend to purchase the home. They must meet certain income limits based on household size and location and have a credit score of at least 620.

FHA Loan Program

FHA loans, backed by the Federal Housing Administration, are a tried-and-true solution for homebuyers, particularly those purchasing their first home.

They require a lower minimum down payment, as low as 3.5%, and are more accessible to buyers with lower credit scores than conventional loans.

FHA loans also allow for higher debt-to-income ratios, providing more flexibility in qualifying for a mortgage. Additionally, they offer the option of a lower interest rate, making them an attractive option for those looking to minimize upfront costs and monthly payments.

Miami-Dade Advocacy Trust Grant

The Miami-Dade Advocacy Trust grant's Homeownership Assistance Program offers up to $28,500 in no-interest, no-payment loan form for down payment and closing costs to first-time homebuyers in Miami-Dade County, based on income.

This loan is forgiven after 20 years, provided the borrower continues to occupy the home.

Eligibility includes a requirement for applicants to contribute their own funds toward the purchase and to secure a mortgage through an approved lender, ensuring a commitment to homeownership and financial responsibility.

Hallandale Beach Community Grant

The Hallandale Beach Community Grant, facilitated by the Hallandale Beach Community Redevelopment Agency, assists first-time homebuyers with up to $100,000 for down payment and closing costs.

This substantial support is aimed at encouraging homeownership within the Hallandale Beach community reinvestment area.

The assistance comes as a no-interest loan, forgivable after the borrower maintains the property as their primary residence for a minimum of ten years.

To qualify, applicants are required to invest $2,000 of their own funds towards the down payment, among other eligibility criteria, demonstrating a personal commitment to homeownership in Hallandale Beach.

Own a Home Opportunity Grant Program

The Own a Home Opportunity Grant Program (OAHO) represents a significant stride towards making homeownership more attainable for residents across several Florida counties.

Designed to lessen the financial burden on homebuyers, this program extends a generous offer of up to 5% of the total loan amount.

This assistance can be applied towards a down payment or to cover closing costs, directly addressing two major financial hurdles in the homebuying process.

Eligibility for the OAHO grant is extended to buyers in a wide range of counties: Broward, Charlotte, Collier, DeSoto, Lee, Palm Beach, Sarasota, St. Johns, and Volusia.

This broad eligibility criteria ensure that a substantial number of potential homeowners can benefit from the program, fostering homeownership opportunities across diverse communities.

To qualify for the OAHO grant, applicants must meet specific financial criteria, including adhering to income and purchase price limits, ensuring that the program benefits those who need it most.

Additionally, a credit score of at least 640 is required.

Own a Home Opportunity Program

The Own a Home Opportunity Program is a financial assistance initiative designed to support first-time homebuyers in Florida.

Targeting multiple counties, including Charlotte, Collier, DeSoto, Lee, Sarasota, and specifically Palm Beach County, the program seeks to make homeownership more accessible and affordable.

Eligible participants in Charlotte, Collier, DeSoto, Lee, and Sarasota counties can receive up to $7,500 in assistance for down payments and closing costs.

To address the varying economic landscapes across these regions, the program offers an increased assistance amount of $10,000 to buyers in Palm Beach County, recognizing the unique financial challenges faced by residents in this area.

The financial aid provided by the Own a Home Opportunity Program comes in the form of a zero-interest, deferred loan, adding an extra layer of affordability for first-time buyers.

The Good Neighbor Next Door (GNND) Program

The Good Neighbor Next Door (GNND) Program is a U.S. Department of Housing and Urban Development (HUD) initiative to encourage community revitalization and homeownership.

This program offers significant financial assistance to eligible teachers, law enforcement officers, firefighters, and emergency medical technicians (EMTs) when they purchase homes in designated revitalization areas.

Key features of the GNND Program include providing eligible participants with a substantial discount of 50% off the list price of homes located in these areas. In exchange, participants must commit to using the home as their sole residence for at least 36 months.

This commitment is part of HUD's effort to strengthen communities and foster a sense of investment and stability in these areas.

HOME Homebuyers Program

The HOME Homebuyers Program offers up to $12,500 in down payment and closing cost assistance as a zero-interest deferred loan to first-time homebuyers in Escambia County and Pensacola.

This financial support is designed to make homeownership more accessible by easing the initial financial burden, without the pressure of immediate repayment or interest accumulation.

Eligibility criteria include homes built after 1978, adherence to HOME price limits, and location within the specified areas. This ensures the program supports modern, safe housing and remains focused on serving the local community.

Through providing essential financial assistance and clear eligibility guidelines, the HOME Homebuyers Program significantly aids in promoting homeownership, supporting the economic and communal growth of Pensacola and Escambia County.

SHIP First Time Homebuyers Program

The SHIP First Time Homebuyers Program, supported by state funds in Pensacola and Escambia County, provides up to $25,000 in down payment and closing cost assistance.

This assistance, determined by the borrower's income, is delivered as a zero-interest deferred loan, meaning there's no interest accumulation during the deferment period.

A key eligibility factor is the program's broad definition of a first-time buyer, including those who haven't owned a home in the last three years. This flexibility makes it easier for more individuals to access the program and pursue homeownership.

VA Mortgage

The VA mortgage is a 100% mortgage guaranteed by the Department of Veterans Affairs and is specifically designed for active-duty military members, veterans of the armed services, and surviving spouses.

VA loans do not require mortgage insurance and have a minimum credit score requirement of 620. Eligible buyers can utilize VA loans to purchase residential properties with 1-4 units across all 50 states and U.S. territories.

Panama City Grant

The Panama City Grant: Homeownership Assistance Program provides first-time homebuyers with up to $50,000 to cover closing costs, down payments, and mortgage payments.

This financial support is extended as a second mortgage, accommodating a diverse range of home types to ensure broad accessibility.

To be eligible, the purchase price of the property must not exceed $300,000, allowing for a wide variety of housing options within this budget.

This program aims to make homeownership more attainable for first-time buyers in Panama City, supporting their journey towards owning a home.

USDA Mortgage

The USDA mortgage is a 100% mortgage supported by the U.S. Department of Agriculture. It is specifically designed for homes in non-urban communities, which account for 91 percent of the United States land mass.

USDA mortgages are an excellent option for buyers with a minimum credit score of 580, as they allow 100% financing. Furthermore, USDA mortgage rates are frequently the most affordable low-down-payment mortgage loans.

FHFA First-Time Home Buyer Discount

In 2024, first-time homebuyers will receive a discount on interest rates for their loans from the Federal Housing Finance Agency (FHFA) to make housing more accessible. To be eligible, you must meet these criteria:

• First-time homebuyers.

• Utilization of a conventional, 30-year fixed-rate mortgage.

• Income at or below the average household income for their area.

First-time homebuyers who are eligible may receive automatic mortgage rate discounts of up to 1.75 percentage points on conventional 30-year fixed-rate mortgages, which can reduce monthly mortgage payments by up to 20%.

The amount of mortgage rate discounts for first-time homebuyers will vary depending on factors such as credit score, the amount of the down payment, the type of property, and the loan program.

Dare to Own the Dream

Tampa's Dare to Own the Dream program offers eligible homebuyers up to $40,000 in assistance for down payment and closing costs.

This assistance is provided as a deferred-payment loan that is completely forgiven after 10 years of ownership and occupancy.

Applicants are required to collaborate with city-approved counseling agencies, loan officers, and real estate agents to ensure a comprehensive support network throughout the homebuying process.

A personal financial contribution towards the purchase is also necessary, reinforcing the buyer's investment in homeownership.

Properties eligible for this program must be within Tampa city limits and pass a city inspection, ensuring safety and compliance standards are met.

East Tampa CRA Down Payment Assistance Program

The East Tampa CRA Down Payment Assistance Program targets first-time homebuyers interested in purchasing within the East Tampa community reinvestment area, offering up to $50,000 in assistance.

This zero-interest loan aids in covering down payment costs and is forgiven after the home remains the buyer's primary residence for seven years.

Eligibility mirrors that of the DARE program, with the key difference being the property's location within the East Tampa CRA, ensuring focused support for homebuyers in this specific area.

HomeReady

HomeReady is a mortgage program that provides lower rates and costs to low- and moderate-income home buyers and a 3% down payment option.

To be eligible for HomeReady, you must have a minimum FICO score of 620.

When buying a HomePath property with HomeReady, you can get a $500 credit for closing costs. The HomePath Ready Buyer program also offers a 3% cash contribution to cover your mortgage closing expenses.

Fannie Mae's Standard 97% LTV Loan

This program is designed for first-time homebuyers who might not have a large down payment. The Standard 97% LTV (Loan-to-Value) Loan by Fannie Mae allows buyers to finance up to 97% of their home purchase, meaning they only need to put down 3%.

This program is similar to the HomeReady loan but does not have as many income restrictions. It requires at least one borrower to be a first-time homebuyer and has a minimum credit score requirement, which can vary depending on the lender.

Home Possible

Home Possible is a mortgage program for low and moderate-income home buyers that allows a 3% down payment, similar to HomeReady. It provides reduced mortgage rates and costs and includes fixed-rate and adjustable-rate loan options.

Home Possible requires a minimum FICO score of 660 to qualify. It is an excellent choice for multi-generational households looking for a mortgage with a low down payment.

The National Homebuyers Fund

Homebuyers can take advantage of the National Homebuyers Fund, a non-profit public benefit corporation that offers cash grants up to 5 percent of the purchase price.

To be eligible, you must commit to living in your new home for at least five years. Sadly, renters cannot apply directly - only their mortgage company can apply on their behalf.

Forgivable Mortgages

Forgivable mortgages are a type of loan that can be canceled after a homeowner meets certain conditions, such as making regular payments for an agreed-upon period.

In this scenario, a first-time buyer would use a conventional mortgage to purchase a home and make the down payment with a forgivable loan of $15,000, for example.

Suppose the buyer resides in the home and meets their payment obligations for the agreed-upon term, usually five years. In that case, the lender will forgive the $15,000 mortgage and release their claim on the property's title.

Forgivable mortgages are a popular tool governments leverage to promote homeownership, neighborhood development, and local investment - all necessary for a thriving economy.

If you have ever come across cities offering incentives for individuals to move there, forgivable mortgages are likely integrated into that strategy.

Discounted Homes from HUD

The Good Neighbor Next Door Program (GNND) by the U.S. Department of Housing and Urban Development (HUD) offers repossessed homes to first-time buyers at a 50% discount.

This program is designed for teachers, firefighters, law enforcement officials, and emergency medical technicians who want to reside in the community where they work. To apply for GNND, one can search for eligible homes on the HUD website and apply for a mortgage online.

Down Payment Loans

Down payment loans are loans from non-profit and community organizations that replace a home buyer’s down payment with borrowed cash. Interest rates on these loans are usually in the one-percent range and amortized over 30 years for ultra-low payments.

To see if down payment loans are available in your area, contact your municipal government's housing administration, which can offer local connections.

However, some mortgage programs do not allow down payment loans, so buyers should check with their lenders before applying.

Deferred Mortgages

Deferred mortgages allow borrowers to delay repayment until they sell or refinance their home. Municipal governments and local foundations often offer them.

They can provide up to $25,000 in funding for first-time homebuyers who meet certain criteria, including having an income below the area average and a credit history with a track record of on-time payments.

Every session, Congress supports first-time home buyers by introducing legislation to assist renters in becoming homeowners. In the current session, Congress is expected to present two essential bills - a tax credit and a cash grant.

The $15,000 First-Time Home Buyer Tax Credit

The proposed $15,000 First-Time Home Buyer Tax Credit aims to support individuals purchasing their first home.

This program, inspired by a similar initiative from 2009, is designed to ease the financial burden for first-time homeowners.

Key Aspects:

• Eligibility - Targets first-time homebuyers.

• Refundable Credit - Offers a tax credit of up to $15,000.

• Purchase Period - Applicable for homes bought after December 31, 2020.

• Tax Deductions - Includes the possibility of claiming mortgage interest and credits for home improvements.

The $25,000 Down Payment Toward Equity Cash Grant

In addition to the tax credit, the Down Payment Toward Equity Act proposes further financial assistance.

This grant is aimed at first-generation home buyers and those from disadvantaged backgrounds, offering up to $25,000 to support home purchases.

Elements of the Grant:

• Amount - Up to $20,000 for first-generation buyers, plus an additional $5,000 for buyers from disadvantaged backgrounds.

• Usage - Covers down payments, closing costs, and real estate taxes and enables lower mortgage rates.

• Legislative Status - Currently proposed, with expectations of reintroduction in the current Congressional session.

Florida Homebuyer Programs and Grants FAQs

We've answered some common questions that you may have while trying to pick a grant or program here:

How do I determine which Florida first-time homebuyer grant is right for me?

Consider your location, income, credit score, and the type of property you're interested in. Matching these factors with the specific requirements of each program can help narrow down your options.

Can I apply for more than one grant program at a time?

Yes, depending on the programs' rules. Some may allow combining grants for greater assistance, but always check the specific eligibility requirements and restrictions.

What are the benefits of completing a home buyer education course?

Besides being a requirement for most programs, these courses provide valuable information on the homebuying process, financial planning, and homeownership responsibilities.

Are there grants available for homes outside urban areas?

Yes, programs like the USDA mortgage are specifically designed for rural areas, offering 100% financing and low rates to encourage homeownership in less densely populated regions.

How does the first-time homebuyer definition affect eligibility?

Most programs define a first-time homebuyer as someone who hasn't owned a home in the past three years. This broader definition allows more individuals to qualify for assistance.

What role does my credit score play in qualifying for these programs?

Your credit score can influence which programs you're eligible for and the amount of assistance you can receive. Programs typically have a minimum credit score requirement.

Can I use these grants for any type of home?

Each program has its own restrictions on the type of properties eligible, such as single-family homes, condos, or townhouses, and some have price limits or location requirements.

What happens if I move out of my home before the grant's occupancy requirement is met?

You may have to repay the grant or a portion of it, depending on the specific terms of the program. These requirements are designed to encourage long-term homeownership and community investment.

How do income and purchase price limits affect my eligibility?

These limits ensure the programs assist those most in need and vary by location and household size. Staying within these limits is crucial for qualifying for assistance.

Where can I find more information about applying for these programs?

Visit the websites of the specific programs you're interested in or contact local housing authorities. They can provide detailed information, application guidelines, and assistance throughout the process.