What Is Down Payment Assistance?
Down payment assistance (DPA) programs help Florida homebuyers who can afford monthly mortgage payments but cannot save enough for the upfront cash required at closing. These programs provide financial help through grants (free money), forgivable loans (loans that disappear after a set period), and deferred-payment second mortgages.
Florida's Major DPA Programs
- Florida Housing Finance Corporation (FHFC) — Offers multiple programs including the Florida Assist (up to $10,000 as a deferred second mortgage at 0% interest) and the HLP Second Mortgage Program (up to $10,000 at 3% interest for 15 years).
- Hometown Heroes Program — Created in 2022 for Florida community workers (teachers, nurses, law enforcement, firefighters, military). Provides up to 5% of the first mortgage amount as a forgivable second mortgage at 0% interest.
- County and City Programs — Many Florida counties offer additional local DPA programs with varying income limits and assistance amounts. Hillsborough, Pinellas, Manatee, and Sarasota counties all have active programs.
Qualification Requirements
Most Florida DPA programs require:
- The buyer must be a first-time homebuyer (or have not owned a home in the past 3 years).
- The buyer's household income must fall below a specified limit (varies by county and program).
- The property must be the buyer's primary residence (no investment properties).
- The buyer must complete a HUD-approved homebuyer education course.
- The buyer must use an approved lender and meet standard mortgage qualifications (DTI, credit score, etc.).
Related Terms
- Mortgage — The primary loan DPA programs supplement
- Closing Costs — Often covered by DPA programs alongside the down payment
- Debt-to-Income Ratio — A qualification metric for both the mortgage and DPA
Barnes Walker First-Time Buyer Guidance
Barnes Walker's real estate attorneys guide Florida first-time homebuyers through the DPA application process, coordinating with approved lenders and ensuring our clients maximize available grant and forgivable loan programs to minimize out-of-pocket closing costs. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC