25 Best 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.

Are you a first-time homebuyer in Florida looking for financial assistance to make your dream of homeownership a reality? You're not alone. Many first-time homebuyers face challenges such as saving for a down payment and navigating the complex homebuying process. 

But don't worry! First-time homebuyers in Florida 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.

Mortgage Planning Expert Insight

Through my 2+ decades of experience with residential home financing as a certified mortgage planning specialist in Florida, I know exactly how to develop the best mortgage plan for any type of buyer. I have helped thousands of first-time home buyers use all the grants and programs they are eligible for in all types of property purchases. 

These programs offer a variety of benefits, from down payment assistance to reduced mortgage rates, making it easier for you to purchase your first home. 

By taking advantage of these opportunities, you can reduce the financial burden of homeownership and start building equity in your new home. In this comprehensive guide, we'll explore the 25 best grants and programs available to first-time homebuyers in Florida for 2024.

1. Florida Hometown Heroes Program

Benefits

• Up to $35,000 in assistance for down payments and closing costs
• Lower first mortgage interest rate for eligible borrowers

Eligibility Requirements

• Must be a first-time homebuyer employed in or serving the community where you intend to purchase the home
• Meet certain income limits based on household size and location
• Have a credit score of at least 620
• Complete a homebuyer education course

The Florida Hometown Heroes Housing Program provides down payment and closing cost assistance to first-time, income-qualified homebuyers employed in or serving their local Florida community.

The program offers substantial benefits, including up to $35,000 in assistance for down payments and closing costs, along with a lower first mortgage interest rate for eligible borrowers.

To qualify, you must be a first-time homebuyer employed in or serving the community where you intend to purchase the home, meet certain income limits based on household size and location, and have a credit score of at least 620. Additionally, completing a homebuyer education course is required.

2. FHA Loan Program

Benefits

• Lower minimum down payment (as low as 3.5%)
• More accessible for buyers with lower credit scores than conventional loans
• Allows for higher debt-to-income ratios, providing more flexibility in qualifying for a mortgage
• Potential for a lower interest rate

Eligibility Requirements

• Must meet FHA credit score requirements
• Purchase a home that meets FHA property standards
• Pay mortgage insurance premiums

FHA loans, backed by the Federal Housing Administration, are a popular solution for first-time homebuyers. They require a lower minimum down payment (as low as 3.5%) and are more accessible for buyers with lower credit scores than conventional loans.

FHA loans allow for higher debt-to-income ratios, providing more flexibility in qualifying for a mortgage. This means that even with student loans, car payments, or other debts, you may still be able to qualify for an FHA loan.

Another benefit of FHA loans is the potential for a lower interest rate, making them an attractive option for minimizing upfront costs and monthly payments.

3. Miami-Dade Advocacy Trust Grant

Benefits

• Up to $28,500 in a no-interest, no-payment loan for down payment and closing costs
• Loan is forgiven after 20 years, provided you continue to occupy the home as your primary residence

Eligibility Requirements

• Must be a first-time homebuyer in Miami-Dade County
• Contribute your own funds toward the purchase
• Secure a mortgage through an approved lender
• Complete a homebuyer education course
• Meet income and purchase price limits based on household size

The Miami-Dade Advocacy Trust grant's Homeownership Assistance Program offers up to $28,500 in a no-interest, no-payment loan 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 you continue to occupy the home as your primary residence, meaning if you stay in the home for the full 20-year term, you won't have to pay back the loan.

Eligibility requirements include contributing your own funds toward the purchase, securing a mortgage through an approved lender, completing a homebuyer education course, and meeting income and purchase price limits based on household size.

4. Hallandale Beach Community Grant

Benefits

• Up to $100,000 for down payment and closing costs
• No-interest loan, forgivable after maintaining the property as your primary residence for a minimum of 10 years

Eligibility Requirements

• Must invest $2,000 of your own funds toward the down payment
• Eligible properties must be located within the designated reinvestment area and pass a home inspection

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

This substantial support encourages homeownership within the Hallandale Beach community reinvestment area. The assistance is a no-interest loan, forgivable after you maintain the property as your primary residence for a minimum of 10 years.

To qualify, you must invest $2,000 of your own funds toward the down payment and meet other eligibility criteria. Eligible properties must be located within the designated reinvestment area and pass a home inspection.

5. Own a Home Opportunity Grant Program

Benefits

• Up to 5% of the total loan amount, which can be applied towards a down payment or closing costs
• Broad eligibility across several Florida counties

Eligibility Requirements

• Must meet specific financial criteria, including adhering to income and purchase price limits
• Have a credit score of at least 640
• Eligible properties include single-family homes, condominiums, and townhouses

The Own a Home Opportunity Grant Program (OAHO) makes homeownership more attainable for residents across several Florida counties.

Designed to lessen the financial burden on homebuyers, this program offers up to 5% of the total loan amount, which can be applied towards a down payment or closing costs.

Eligibility extends to buyers in Broward, Charlotte, Collier, DeSoto, Lee, Palm Beach, Sarasota, St. Johns, and Volusia counties. This broad eligibility ensures that a substantial number of potential homeowners can benefit from the program.

To qualify, you must meet specific financial criteria, including adhering to income and purchase price limits and having a credit score of at least 640. Eligible properties include single-family homes, condominiums, and townhouses.

6. Own a Home Opportunity Program

Benefits

• Up to $7,500 in assistance for down payments and closing costs in Charlotte, Collier, DeSoto, Lee, or Sarasota counties
• Up to $10,000 in assistance in Palm Beach County
• Zero-interest, deferred loan

Eligibility Requirements

• Must be a first-time homebuyer
• Meet income and purchase price limits based on household size and location
• Complete a homebuyer education course

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.

If you're an eligible participant in Charlotte, Collier, DeSoto, Lee, or Sarasota counties, you can receive up to $7,500 in assistance for down payments and closing costs. In Palm Beach County, the program offers an increased assistance amount of $10,000, recognizing the unique financial challenges faced by residents in this area.

The financial aid provided comes in the form of a zero-interest, deferred loan, adding an extra layer of affordability for first-time buyers. You won't have to start repaying the loan until you sell the home, refinance, or pay off your mortgage.

To be eligible, you must meet income and purchase price limits based on household size and location and complete a homebuyer education course.

7. The Good Neighbor Next Door (GNND) Program

Benefits

• 50% discount off the list price of homes located in designated revitalization areas
• Encourages community revitalization and homeownership

Eligibility Requirements

• Must be employed full-time as a teacher, law enforcement officer, firefighter, or emergency medical technician (EMT)
• Agree to live in the property as your sole residence for at least 36 months
• The home must be located in a HUD-designated revitalization area and be a single-family residence

The Good Neighbor Next Door (GNND) Program, a U.S. Department of Housing and Urban Development (HUD) initiative, encourages community revitalization and homeownership by offering 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, you must commit to using the home as your 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. By encouraging these vital professionals to live in the communities they serve, the program aims to improve safety, education, and overall quality of life.

To be eligible, you must be employed full-time in one of the designated professions and agree to live in the property for the required 36-month term. The home must be located in a HUD-designated revitalization area and be a single-family residence.

8. HOME Homebuyers Program

Benefits

• Up to $12,500 in down payment and closing cost assistance as a zero-interest deferred loan
• Loan is deferred until the home is sold, refinanced, or the mortgage is paid off

Eligibility Requirements

• Must be a first-time homebuyer in Escambia County or Pensacola
• Homes must be built after 1978 and adhere to HOME price limits
• Meet income limits based on household size
• Complete a homebuyer education course

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 makes homeownership more accessible by easing the initial financial burden, without the pressure of immediate repayment or interest accumulation. The loan is deferred until the home is sold, refinanced, or the mortgage is paid off.

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

You must also meet income limits based on household size and complete a homebuyer education course to ensure you are well-prepared for the responsibilities of homeownership.

9. SHIP First Time Homebuyers Program

Benefits

• Up to $25,000 in down payment and closing cost assistance as a zero-interest deferred loan
• Loan is forgiven after a specified period, typically 10-15 years, provided you maintain the home as your primary residence
• Broad definition of a first-time buyer, including those who haven't owned a home in the last three years

Eligibility Requirements

• Must meet income limits based on household size
• Complete a homebuyer education course
• Secure a primary mortgage through a participating lender
• Eligible properties include single-family homes, condominiums, and townhouses located within Pensacola or Escambia County that meet safety and habitability standards

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 your income, is delivered as a zero-interest deferred loan, meaning there's no interest accumulation during the deferment period. The loan is forgiven after a specified period, typically 10-15 years, provided you maintain the home as your primary residence.

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, making it easier for more individuals to access the program and pursue homeownership.

Eligible properties include single-family homes, condominiums, and townhouses located within Pensacola or Escambia County. The homes must also meet safety and habitability standards.

To qualify, you must meet income limits based on household size and complete a homebuyer education course. You must also secure a primary mortgage through a participating lender.

10. VA Mortgage

Benefits

• 100% mortgage guaranteed by the Department of Veterans Affairs
• No mortgage insurance required
• Minimum credit score requirement of 620
• Competitive interest rates, often lower than conventional mortgage rates

Eligibility Requirements

• Must be an active-duty military member, veteran, or surviving spouse
• Served a minimum term of active duty or have been honorably discharged
• Surviving spouses of veterans who died in the line of duty or as a result of a service-connected disability may also be eligible

If you're an active-duty military member, veteran, or surviving spouse, the VA mortgage could be an excellent option for you. This 100% mortgage is guaranteed by the Department of Veterans Affairs and is specifically designed to help you achieve homeownership.

VA loans do not require mortgage insurance and have a minimum credit score requirement of 620, making them an attractive option if you may not have a large down payment saved or have less-than-perfect credit.

You can use VA loans to purchase residential properties with 1-4 units across all 50 states and U.S. territories, including single-family homes, condominiums, and manufactured homes.

One of the key benefits of VA loans is the competitive interest rates, which are often lower than conventional mortgage rates, resulting in significant savings over the life of the loan.

To be eligible, you must have served a minimum term of active duty or have been honorably discharged. Surviving spouses of veterans who died in the line of duty or as a result of a service-connected disability may also be eligible.

11. Panama City Grant

Benefits

• Up to $50,000 to cover closing costs, down payments, and mortgage payments
• Loan is forgiven after a specified period, typically 10-20 years, provided you maintain the home as your primary residence
• Accommodates a diverse range of home types to ensure broad accessibility

Eligibility Requirements

• Must be a first-time homebuyer
• Purchase price of the property must not exceed $300,000
• Meet income limits based on household size
• Complete a homebuyer education course
• Secure a primary mortgage through a participating lender and contribute a minimum of $500 toward the purchase
• Eligible properties include single-family homes, condominiums, and townhouses located within Panama City limits that meet safety and habitability standards

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. The loan is forgiven after a specified period, typically 10-20 years, provided you maintain the home as your primary residence.

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.

Eligible properties include single-family homes, condominiums, and townhouses located within Panama City limits. The homes must also meet safety and habitability standards.

You must meet income limits based on household size and complete a homebuyer education course. You must also secure a primary mortgage through a participating lender and contribute a minimum of $500 toward the purchase.

12. USDA Mortgage

Benefits

• 100% mortgage supported by the U.S. Department of Agriculture for homes in rural areas
• Allows 100% financing with no down payment for buyers with a minimum credit score of 580
• Offers the most affordable low-down-payment mortgage rates, resulting in lower monthly payments and significant savings
• Flexible credit guidelines

Eligibility Requirements

• Must meet income limits based on household size and location
• Property must be located in a designated rural area and be used as your primary residence
• Eligible properties include single-family homes, condominiums, and manufactured homes that meet USDA safety and habitability standards

If you're looking to purchase a home in a non-urban community, the USDA mortgage could be an excellent fit for you. This 100% mortgage, supported by the U.S. Department of Agriculture, is specifically designed for homes in rural areas, which account for 91% of the United States land mass.

USDA mortgages are an excellent option if you have a minimum credit score of 580, as they allow 100% financing, meaning you can purchase a home with no down payment.

Furthermore, USDA mortgage rates are frequently the most affordable low-down-payment mortgage loans, resulting in lower monthly payments and significant savings over the life of the loan.

To be eligible, you must meet income limits based on household size and location. The property must also be located in a designated rural area and be used as your primary residence.

Eligible properties include single-family homes, condominiums, and manufactured homes that meet USDA safety and habitability standards.

In addition to the 100% financing and competitive rates, USDA mortgages also offer flexible credit guidelines, making them a good option if you have less-than-perfect credit.

13. FHFA First-Time Home Buyer Discount

Benefits

• Automatic mortgage rate discounts of up to 1.75 percentage points on conventional 30-year fixed-rate mortgages
• Reduces monthly mortgage payments by up to 20%, making homeownership more affordable
• Discount amount varies depending on factors such as credit score, down payment, property type, and loan program

Elgibility Requirements

• Must be a first-time homebuyer
• Utilize a conventional 30-year fixed-rate mortgage
• Have an income at or below the average household income for your area

In 2024, the Federal Housing Finance Agency (FHFA) is offering first-time homebuyers a discount on interest rates for their loans to make housing more accessible.

To qualify for this discount, you must be a first-time homebuyer, utilize a conventional 30-year fixed-rate mortgage, and have an income at or below the average household income for your area.

As an eligible first-time homebuyer, you may receive automatic mortgage rate discounts of up to 1.75 percentage points on conventional 30-year fixed-rate mortgages, which can reduce your monthly mortgage payments by up to 20%.

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

This discount can make a significant difference in the affordability of homeownership, particularly if you're stretching your budget to purchase a home.

It's important to note that this discount is only available for conventional mortgages, not government-backed loans such as FHA, VA, or USDA mortgages.

To take advantage of this discount, work with a participating lender and ensure you meet all eligibility criteria. Compare rates and terms from multiple lenders to ensure you are getting the best deal possible.

14. Dare to Own the Dream

Benefits

• Up to $40,000 in assistance for down payment and closing costs
• Deferred-payment loan that is completely forgiven after 10 years of ownership and occupancy
• Collaboration with city-approved counseling agencies, loan officers, and real estate agents for comprehensive support

Eligibility Requirements

• Must be a first-time homebuyer (haven't owned a home in the past three years)
• Meet income limits based on household size
• Complete a homebuyer education course
• Contribute a personal financial contribution toward the purchase, with the minimum amount varying based on income and household size
• Eligible properties must be within Tampa city limits, pass a city inspection, and meet purchase price limits based on property type and income

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, meaning that if you maintain the home as your primary residence for the full 10-year term, you won't have to repay any of the assistance funds.

You 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 toward the purchase is also necessary, reinforcing your investment in homeownership. The minimum contribution varies based on your income and household size.

Properties eligible for this program must be within Tampa city limits and pass a city inspection, ensuring safety and compliance standards are met. This includes single-family homes, condominiums, and townhouses. The homes must also meet purchase price limits based on the type of property and your income.

To be eligible, you must be a first-time homebuyer, meaning you haven't owned a home in the past three years. You must also meet income limits based on household size and complete a homebuyer education course.

15. East Tampa CRA Down Payment Assistance Program

Benefits

• Up to $50,000 in assistance for first-time homebuyers purchasing within the East Tampa community reinvestment area
• Zero-interest loan for down payment costs, forgiven after the home remains your primary residence for seven years

Eligibility Requirements

• Must be a first-time homebuyer
• Meet income limits based on household size
• Complete a homebuyer education course
• Secure a primary mortgage through a participating lender and contribute a minimum of $1,000 toward the purchase
• Eligible properties include single-family homes, condominiums, and townhouses located within the East Tampa CRA boundaries that meet safety and habitability standards

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 your 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.

You must be a first-time homebuyer, meet income limits based on household size, and complete a homebuyer education course. You must also secure a primary mortgage through a participating lender and contribute a minimum of $1,000 toward the purchase.

Eligible properties include single-family homes, condominiums, and townhouses located within the East Tampa CRA boundaries that meet safety and habitability standards.

The East Tampa CRA Down Payment Assistance Program is a valuable resource if you're looking to purchase a home in this specific area of Tampa, promoting homeownership and community revitalization.

16. HomeReady

Benefits

• Lower rates and costs, along with a 3% down payment option
• Accessible option for buyers with a minimum FICO score of 620
• $500 credit for closing costs when buying a HomePath property
• HomePath Ready Buyer program offers a 3% cash contribution to cover mortgage closing expenses
• Flexible underwriting guidelines, including the use of non-traditional credit sources and income from non-occupant borrowers

Eligibility Requirements

• Must meet income limits based on household size and location
• Property must be used as your primary residence
• Eligible properties include single-family homes, condominiums, and townhouses

If you're a low- or moderate-income homebuyer, the HomeReady mortgage program could be an excellent option for you. This program provides lower rates and costs, along with a 3% down payment option.

To be eligible for HomeReady, you must have a minimum FICO score of 620, making it an accessible option even if you don't have perfect credit but are still looking to achieve homeownership.

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.

HomePath properties are homes owned by Fannie Mae, typically as a result of foreclosure. By purchasing a HomePath property with HomeReady, you can benefit from both the low down payment option and the additional closing cost assistance.

HomeReady also offers flexible underwriting guidelines, including the ability to use non-traditional credit sources and income from non-occupant borrowers, which can be particularly helpful for multi-generational households or buyers with limited traditional credit history.

To be eligible, you must meet income limits based on household size and location, and the property must be used as your primary residence. Eligible properties include single-family homes, condominiums, and townhouses.

17. Fannie Mae's Standard 97% LTV Loan

Benefits

• Allows financing up to 97% of the home purchase with just a 3% down payment
• Gift funds can be used toward the down payment and closing costs
• Allows for a higher debt-to-income ratio than some other loan programs

Eligibility Requirements

• At least one borrower must be a first-time homebuyer
• Minimum FICO score of 620
• Meet debt-to-income ratio requirements
• Property must be a single-family home, condominium, or townhouse and be used as your primary residence

Fannie Mae's Standard 97% LTV (Loan-to-Value) Loan is designed for first-time homebuyers who might not have a large down payment, allowing them to finance up to 97% of their home purchase with just a 3% down payment.

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.

To be eligible, you must have a minimum FICO score of 620 and meet debt-to-income ratio requirements. The property must be a single-family home, condominium, or townhouse and be used as your primary residence.

One of the benefits of the Standard 97% LTV Loan is that it allows for gift funds to be used toward the down payment and closing costs, meaning you can use funds gifted from family members or other eligible sources to help cover these upfront expenses.

Another advantage is that the program allows for a higher debt-to-income ratio than some other loan programs, which can make it easier for you to qualify.

However, because the loan has a higher LTV ratio, it may come with a higher interest rate than loans with a larger down payment. Compare rates and terms from multiple lenders to ensure you are getting the best deal possible.

18. Home Possible

Benefits

• Allows a 3% down payment
• Provides reduced mortgage rates and costs, including fixed-rate and adjustable-rate loan options
• Flexible sources of funds for the down payment and closing costs, including gift funds, grants, and community seconds programs
• Flexible underwriting guidelines, such as allowing for a higher debt-to-income ratio and the use of non-traditional credit sources
• Allows for the inclusion of income from non-occupant borrowers, which can help multi-generational households qualify for a larger loan amount

Eligibility Requirements

• Must meet income limits based on household size and location
• Property must be used as your primary residence
• Eligible properties include single-family homes, condominiums, and manufactured homes
• Minimum FICO score of 660

Home Possible, a mortgage program for low and moderate-income home buyers, allows a 3% down payment and provides reduced mortgage rates and costs, including fixed-rate and adjustable-rate loan options.

Home Possible requires a minimum FICO score of 660 to qualify, which is slightly higher than the HomeReady program but still accessible for many buyers.

One of the key benefits of Home Possible is that it allows for flexible sources of funds for the down payment and closing costs, including gift funds, grants, and community seconds programs.

Home Possible also has more flexible underwriting guidelines than some other loan programs, which can make it easier for you to qualify, such as allowing for a higher debt-to-income ratio and the use of non-traditional credit sources.

To be eligible, you must meet income limits based on household size and location, and the property must be used as your primary residence. Eligible properties include single-family homes, condominiums, and manufactured homes.

Home Possible is an excellent choice for multi-generational households looking for a mortgage with a low down payment, as it allows for the inclusion of income from non-occupant borrowers, such as parents or grandparents, which can help you qualify for a larger loan amount.

19. The National Homebuyers Fund

Benefits

• Offers cash grants up to 5% of the purchase price
• Two types of grants available: the NHF Down Payment Assistance Grant and the NHF Closing Cost Assistance Grant
• Down Payment Assistance Grant provides up to 5% of the purchase price to be used toward the down payment
• Closing Cost Assistance Grant provides up to 5% of the purchase price to be used toward closing costs

Eligibility Requirements

• Must commit to living in the home as your primary residence for at least five years
• Meet income limits based on household size and location
• Eligible properties include single-family homes, condominiums, and townhouses
• Cannot apply directly; only your mortgage company can apply on your behalf

The National Homebuyers Fund, a non-profit public benefit corporation, offers homebuyers cash grants up to 5% of the purchase price.

To be eligible, you must commit to living in the home as your primary residence for at least five years, ensuring that the program benefits those who intend to be long-term members of the community.

Unfortunately, you cannot apply directly; only your mortgage company can apply on your behalf, meaning you must work with a participating lender to take advantage of the program.

The National Homebuyers Fund offers two types of grants: the NHF Down Payment Assistance Grant and the NHF Closing Cost Assistance Grant.

The Down Payment Assistance Grant provides up to 5% of the purchase price to be used toward the down payment, significantly reducing the amount you need to save, making homeownership more accessible.

The Closing Cost Assistance Grant provides up to 5% of the purchase price to be used toward closing costs, helping you if you've saved enough for a down payment but are struggling to cover the additional costs associated with purchasing a home.

To be eligible, you must meet income limits based on household size and location, and the property must be used as your primary residence. Eligible properties include single-family homes, condominiums, and townhouses.

20. Forgivable Mortgages

Benefits

• Can be canceled after meeting certain conditions, such as making regular payments for an agreed-upon period
• Encourage buyers to stay in their homes and invest in their communities long-term
• Provide a significant amount of financial assistance without the worry of repayment if program requirements are met

Eligibility Requirements

• Typically must meet income limits based on household size and location
• Property must be used as your primary residence
• Eligible properties may include single-family homes, condominiums, and townhouses, depending on the specific program
• Must reside in the home and meet payment obligations for the agreed-upon term, usually five years

Forgivable mortgages, a type of loan that can be canceled after you meet certain conditions, such as making regular payments for an agreed-upon period, are a popular tool governments use to promote homeownership, neighborhood development, and local investment.

In this scenario, you would use a conventional mortgage to purchase a home and make the down payment with a forgivable loan of $15,000, for example. If you reside in the home and meet your payment obligations for the agreed-upon term, usually five years, the lender will forgive the $15,000 mortgage and release their claim on the property's title.

If you have ever come across cities offering incentives for individuals to move there, forgivable mortgages are likely integrated into that strategy, as they encourage buyers to stay in their homes and invest in their communities long-term.

To be eligible, you must typically meet income limits based on household size and location, and the property must be used as your primary residence. Eligible properties may include single-family homes, condominiums, and townhouses, depending on the specific program.

One of the key benefits of forgivable mortgages is that they can provide a significant amount of financial assistance without you having to worry about repaying the loan if you meet the program requirements.

However, if you do not meet the program requirements, such as selling the home or refinancing before the end of the agreed-upon term, you may be required to repay some or all of the forgivable mortgage amount.

21. Discounted Homes from HUD

Benefits

• Offers repossessed homes to first-time buyers at a 50% discount
• Encourages professionals like teachers, firefighters, law enforcement officials, and emergency medical technicians to live in and invest in the communities they serve
• Favorable financing terms, including low down payment options and the ability to finance closing costs

Eligibility Requirements

• Must be a teacher, firefighter, law enforcement official, or emergency medical technician
• Commit to living in the home as your primary residence for at least 36 months
• Eligible homes are located in designated revitalization areas and are typically single-family residences
• Homes are sold as-is, so careful inspection and budgeting for repairs are necessary

If you're a teacher, firefighter, law enforcement official, or emergency medical technician looking to purchase a home in the community where you work, the Good Neighbor Next Door Program (GNND) by the U.S. Department of Housing and Urban Development (HUD) could be an excellent opportunity for you. 

This program offers repossessed homes to first-time buyers at a 50% discount, encouraging these professionals to live in and invest in the communities they serve.

To apply for GNND, you can search for eligible homes on the HUD website and apply for a mortgage online. Eligible homes are located in designated revitalization areas and are typically single-family residences.

To be eligible, you must commit to living in the home as your primary residence for at least 36 months, ensuring that the program benefits those who intend to be long-term members of the community.

In addition to the 50% discount, GNND also offers favorable financing terms, including low down payment options and the ability to finance closing costs.

One of the key benefits of GNND is that it can make homeownership accessible for those who may not otherwise be able to afford it, offering homes at a significant discount and with favorable financing terms.

However, GNND homes are sold as-is, meaning you may need to make repairs or improvements to the property. Carefully inspect the property and budget for any necessary repairs before committing to a purchase.

22. Down Payment Loans

Benefits

• Replace down payment with borrowed cash, making homeownership more accessible for those without a large down payment saved
• Interest rates usually in the one-percent range and amortized over 30 years for ultra-low payments
• Can significantly reduce the amount of money needed to save for a down payment

Eligibility Requirements

• Check with your lender before applying to ensure they are comfortable with your financial stake in the property
• Some mortgage programs do not allow down payment loans
• Contact your municipal government's housing administration for local connections and information on available programs

If you're struggling to save for a down payment, down payment loans provided by non-profit and community organizations could be a solution. These loans replace your down payment with borrowed cash, making homeownership more accessible if you don't have a large down payment saved.

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 for local connections and information on available programs.

However, some mortgage programs do not allow down payment loans, so check with your lender before applying to ensure they are comfortable with your financial stake in the property.

One of the key benefits of down payment loans is that they can significantly reduce the amount of money you need to save for a down payment, making homeownership more accessible.

Another advantage is that, because the interest rates on these loans are typically very low, the monthly payments are often manageable.

However, you will need to repay the down payment loan in addition to your primary mortgage, so carefully consider your budget and ensure that you can afford both payments before committing to a purchase.

23. Deferred Mortgages

Benefits

• Allow you to delay repayment until you sell or refinance your home
• Can provide up to $25,000 in funding for first-time homebuyers who meet certain criteria
• Do not impact your debt-to-income ratio, making it easier to qualify for a primary mortgage and achieve homeownership
• Provide a significant amount of financial assistance without the worry of repayment until the property is sold or refinanced

Eligibility Requirements

• Must be a first-time homebuyer
• Have an income below the area average
• Have a credit history with a track record of on-time payments
• Meet income limits based on household size and location
• Property must be used as your primary residence
• Eligible properties may include single-family homes, condominiums, and townhouses, depending on the specific program

Deferred mortgages, often offered by municipal governments and local foundations, allow you to delay repayment until you sell or refinance your home.

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

One of the key benefits of deferred mortgages is that they can provide a significant amount of financial assistance without you having to worry about repaying the loan until you sell or refinance the property, which can be particularly helpful if you may not have the means to repay an additional loan on top of your primary mortgage.

Another advantage is that, because the loan is deferred, it does not impact your debt-to-income ratio, making it easier for you to qualify for a primary mortgage and achieve homeownership.

However, deferred mortgages must be repaid when you sell or refinance the property, so carefully consider your long-term plans and ensure that you will be able to repay the loan when the time comes.

To be eligible, you must typically meet income limits based on household size and location, and the property must be used as your primary residence. Eligible properties may include single-family homes, condominiums, and townhouses, depending on the specific program.

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.

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

Benefits

• Offers a refundable tax credit of up to $15,000 for first-time homebuyers
• Can be claimed in addition to other tax deductions and credits related to homeownership, such as the mortgage interest deduction and credits for energy-efficient home improvements
• Refundable nature of the credit means you can receive the full credit amount even if you don't owe $15,000 in taxes

Eligibility Requirements

• Must be purchasing your first home
• Meet certain income limits based on household size and location
• Use the home as your primary residence
• Applicable for homes bought after December 31, 2020

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

One of the key benefits of this tax credit is that it is refundable, meaning that even if you don't owe $15,000 in taxes, you can still receive the full credit amount, providing a significant financial boost if you may not have a high tax liability.

Another advantage is that the credit can be claimed in addition to other tax deductions and credits related to homeownership, such as the mortgage interest deduction and credits for energy-efficient home improvements.

To be eligible, you must be purchasing your first home, meet certain income limits based on household size and location, and use the home as your primary residence.

25. The $25,000 Down Payment Toward Equity Cash Grant

Benefits

• Offers up to $20,000 for first-generation buyers, plus an additional $5,000 for buyers from disadvantaged backgrounds
• Covers down payments, closing costs, and real estate taxes, and enables lower mortgage rates
• Can be used in conjunction with other homeownership assistance programs, such as the $15,000 First-Time Home Buyer Tax Credit

Eligibility Requirements

• Must be a first-generation homebuyer (your parents or legal guardians do not own a home)
• Or, must be from a disadvantaged background, such as having a low income or living in a historically underserved community
• Currently proposed, with expectations of reintroduction in the current Congressional session

In addition to the tax credit, the Down Payment Toward Equity Act proposes further financial assistance, offering up to $25,000 to support home purchases for first-generation home buyers and those from disadvantaged backgrounds.

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.

One of the key benefits of this grant is that it provides significant financial assistance that does not need to be repaid, making homeownership more accessible if you may not have the means to save a large down payment or cover all of the upfront costs associated with buying a home.

Another advantage is that the grant can be used in conjunction with other homeownership assistance programs, such as the $15,000 First-Time Home Buyer Tax Credit, providing a significant financial boost and making homeownership more affordable.

To be eligible, you must be a first-generation homebuyer, meaning that your parents or legal guardians do not own a home, or you must be from a disadvantaged background, such as having a low income or living in a historically underserved community.

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.