Florida Hometown Heroes Program – The Complete Guide to New Rules & $50M in Funding

If you want to use this program, you need to read this guide and act now, because the funding goes fast and won’t last long.

This guide covers who qualifies, what’s changed, and how to get started.

Florida Hometown Heroes Program Updates Effective July 1, 2025

For the 2025–2026 fiscal year, the Florida Hometown Heroes Program is undergoing major changes, with a renewed focus on specific public service roles and a smaller funding pool.

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Tighter Job Eligibility

Then: Open to all full-time workers in Florida

Now: Limited to approved occupations such as healthcare workers, teachers, first responders, military, childcare, and court staff

Impact: Significantly narrows who qualifies, making it more important to verify eligibility before applying

Same Down Payment Assistance Limit

Then: Up to $35,000 or 5% of the loan amount

Now: Still up to $35,000 or 5% of the first mortgage

Impact: Continues offering strong financial support, but to a smaller, more targeted group

Smaller Funding Allocation

Then: $100 million in funding for 2024

Now: $50 million in funding for 2025

Impact: Fewer applicants will be approved, and funds may run out faster than in past years

Delayed Program Launch

Then: Funds released July 1st

Now: Not launching on July 1st; pending final approval from the Governor and Florida Housing

Impact: Applications are not open yet—borrowers must wait for official guidance and occupation list before applying

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Mortgage Options in the Florida Hometown Heroes Program

The Florida Hometown Heroes Program offers various mortgage choices to cater to different needs and circumstances. Here's a breakdown:

FHA Loans

• Insured by: Federal Housing Administration (FHA).

• Key Feature: More forgiving credit score requirements compared to conventional loans.

• Suitable for: Borrowers seeking leniency in credit criteria.

VA Loans

• Guaranteed by: Department of Veterans Affairs (VA).

• Key Features: 100% financing available, eliminating the need for a down payment. No monthly Mortgage Insurance Premiums (MIP).

• Suitable for: Veterans and qualifying service members seeking comprehensive financing options.

USDA Loans

• Guaranteed by: United States Department of Agriculture (USDA).

• Key Features: 100% financing is available for home purchases in designated rural areas. No monthly MIP.

• Suitable for: Buyers in rural locations looking for full financing.

Conventional Loans

• Nature: Not insured or guaranteed by the government.

• Key Features: Requires a minimum down payment of 3%. Generally, higher interest rates than FHA or VA loans.

• Suitable for: Borrowers with higher credit scores and the ability to afford a down payment.

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What is Florida Hometown Heroes Down Payment Assistance?

If you qualify for the Florida Hometown Heroes loan, you can get help with your down payment and closing costs through a second loan.

This second loan is 5% of your main mortgage amount, up to a maximum of $35,000. It has no interest and no monthly payments, but it must be paid back later.

You’ll have to repay the full amount if you:

• Pay off your main mortgage

• Refinance your mortgage

• Sell or transfer the home

• Move out and stop living in the home as your primary residence

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Hometown Heroes Eligibility Requirements

There are several requirements that applicants must satisfy to be considered eligible for a first mortgage in the Hometown Heroes Housing Program. These include:

New Occupation Requirements for 2025 

For 2025, the Florida Hometown Heroes Program introduces new occupation-based eligibility rules. Only full-time workers in specific public service roles will qualify—this is a major change from last year, when the program was open to all full-time Florida employees. Be sure to check if your job is on the approved list before applying.

Eligible Professions:

• Healthcare workers (e.g., nurses, physicians, therapists)

• School staff (e.g., teachers, administrators, counselors)

• First responders (e.g., EMTs, paramedics)

• Public safety personnel (e.g., firefighters, police officers)

• Court employees (e.g., clerks, court reporters)

• Childcare workers (e.g., daycare providers, preschool staff)

• Active military members, National Guard, or Coast Guard

• Veterans employed full-time in Florida

First-Time Homebuyer Requirement

An applicant must be a first-time homebuyer to be considered for the FL Housing Hometown Heroes program. This implies they shouldn't have shown any ownership interest in a primary house in the three years leading up to the execution of the Mortgage Loan.

However, active military service members and veterans are exempted from this standard and need not be first-time homebuyers to qualify for the program.

A Veteran is "anyone who has served in the active military, naval, or air service and was dismissed or released under terms other than dishonorable." This veteran's exception applies to all of FL Housing's programs.

Income Limit Requirement

You must earn less than 150% of your area’s median income to qualify.

Income types that count include:

• Salary or hourly pay

• Self-employment income

• VA payments

• Child support or alimony

• Social Security

• Retirement income

• Investment income

Credit Requirements

A good credit score is critical when applying for any mortgage since it shows your lender that you can repay the loan on time. This is why most mortgage programs have credit limit requirements for their loans.

Depending on the mortgage you are applying for in the Hometown Heroes Housing Program, you'll need to have a particular FICO score to be considered eligible.

If you're applying for the FL Hometown Heroes First Mortgage Loan For TBA (FHA, VA, and USDA-RD), you need a minimum FICO score of 640.

On the other hand, if you're applying for an HFA Preferred loan for TBA (Fannie Mae) or an HFA Advantage loan for TBA (Freddie Mac), you must have a FICO score of 640 or higher, depending on your mortgage provider.

It is worth noting that shopping for a mortgage can reduce your credit score by a few points due to credit inquiries by lenders.

DTI Requirements

Prospective homebuyers applying for mortgages in the Hometown Heroes Housing Program must satisfy specific DTI requirements to qualify for the different loan types.

• Maximum 50% DTI with AUS A/E
• Maximum 43% DTI with manual underwrites
• Maximum 45% DTI with manufactured housing

Homebuyer Education Requirement

All Hometown Heroes Mortgage Program applicants must complete a pre-purchase homebuyer education course that meets the Housing and Urban Development Department (HUD) standards or the National Industry Standards for Homeownership Education and Counseling.

Participating lenders are charged with providing this education course directly or in partnership with a mortgage insurance business.

Certificates of completion are valid for two years from the date of completion. Post-closing education is unacceptable, and borrowers must move into the house within 60 days of the closing date.

Purchase Limits

This clause establishes a ceiling on agreed-upon purchase prices or the prices of available residences for sale.

In other words, you can't use the FL Hometown Heroes mortgage loan to pay more than the maximum amount allowed for various types of property across Florida.

The maximum purchase price varies by county and by area within a county.

Property Requirements

Generally, all mortgage products offered in the Hometown Heroes Housing Program can only be used to purchase primary homes.

They cannot be used to refinance pre-existing mortgages or purchase properties for other purposes, such as business.

Some of the property types that a borrower can purchase using these loans include:

• Attached or Detached 1-unit dwellings, including townhouse
• 2 - 4 unit property
• Condos
• Manufactured Housing (1994 or newer)

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Florida Tax Exemption Benefits

One of the top benefits of using the Hometown Heroes Program is tax exemption, saving you thousands of dollars.

Under Section 420.513(1) of the Florida Statutes, this program exempts documentary stamp tax and intangible tax for first and second mortgages and notes to secure loans for housing financed through Florida Housing's Homebuyer Programs.

This means that when you purchase a home through these programs, you won't have to pay the documentary stamp tax and intangible tax on your mortgage, saving you a substantial amount of money.

The Florida documentary stamp tax is a real estate transfer tax levied at $0.70 per $100 paid for the property in most counties, except Miami Dade, which is $0.60 per $100.

You can exclude this tax with the Hometown Heroes Program when you meet the program's criteria. The Florida intangible tax, calculated at two mills per dollar of the note's just value secured by the mortgage, is also exempted.

For each $100,000 of your home purchase price, this exemption can save you approximately $2,000 in documentary stamp and intangible tax.

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FL Housing Hometown Heroes Mortgage Fees

When applying, you need to be aware of various fees associated with the FL Housing Hometown Heroes First Mortgage Program. These are:

• $400 Investor Funding Fee (payable to Master Servicer)

• $275 Compliance Fee (payable to eHousing)

• $75 Tax Service Fee (payable to Master Servicer)

• $10 Flood Certification Transfer Fee (payable to Master Servicer)

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Documents to Determine FL Housing Hometown Heroes Qualification

The lender is responsible for collecting and validating the following documents to determine if the borrower qualifies for the Program:

• Fully executed HTH Loan Program Certification.

• Copy of VOE validating currently employed, 35 hours or more a week.

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Bottom Line

Funds for the 2025-2026 Hometown Heroes Program will be released soon, and are expected to go quickly.

To take advantage of this opportunity, you need to act fast and be fully prepared.

Ensure you meet all eligibility requirements and have your application ready to submit as soon as the funds become available.

Verify Your 2025-2026 Florida Hometown Heroes Eligibility