Florida runs one of the most generous down payment assistance lineups in the country — and one of the most misunderstood. Four different second-mortgage programs sit under a single umbrella at Florida Housing Finance Corporation, and they behave very differently: one is forgiven, one is deferred but never forgiven, and one comes with an actual monthly payment. Picking the wrong one costs real money. Here's how each one actually works.
First, the front door
Every one of these programs attaches to a Florida Housing first mortgage — a 30-year fixed-rate loan through a participating lender. Florida Housing is explicit on this point: down payment assistance is not available as "stand alone" assistance. You qualify for the first mortgage, and the assistance rides along.
The baseline requirements:
- Minimum credit score of 640
- Work with an approved, participating Program Lender
- Complete approved homebuyer education
- Purchase price below the limits for your county
- Income below the limits for your county
- Meet the IRS definition of a first-time homebuyer — meaning you have not owned and occupied your primary residence in the last three years
That last one is a definition, not a life sentence: previous homeowners who've rented for the past three years generally count as first-time buyers again.
The four assistance programs
| Program | Amount | Structure | Forgiven? |
|---|---|---|---|
| Florida Assist (FL Assist) | Up to $10,000 | 0%, non-amortizing, deferred second | No |
| FL HLP Second Mortgage | $12,500 | 3%, fully amortizing, 30-year term | No — has a monthly payment |
| HFA Preferred / HFA Advantage PLUS | 3%, 4%, or 5% of the total loan amount | Forgivable second, 5-year term | Yes — 20% per year |
| Hometown Heroes | Up to 5% (max $35,000, min $10,000) | 0%, non-amortizing, 30-year deferred second | No |
Florida Assist
Available on FHA, VA, USDA, and Conventional loans, FL Assist offers up to $10,000 as a 0%, non-amortizing deferred second mortgage. There's no monthly payment, but Florida Housing is direct about the catch: the FL Assist is not forgivable. Repayment is deferred until you sell, transfer the property, satisfy the first mortgage, refinance, or stop occupying the home — at which point it becomes due and payable in full.
FL HLP Second Mortgage
The outlier. FL HLP offers $12,500 — more than FL Assist — but at 3% interest, fully amortizing over a 30-year term, which means it carries a monthly payment. Florida Housing flags the practical consequence: because it has a payment, that payment may need to be counted in your debt-to-income ratio during underwriting. More assistance up front, slightly less borrowing power. Sometimes that's the right trade; often it isn't.
HFA Preferred and HFA Advantage PLUS
This is the only genuinely forgivable option, and it's the one buyers most often miss. Borrowers receive 3%, 4%, or 5% of the total loan amount as a forgivable second mortgage, forgiven at 20% per year over its 5-year term. Stay five years and it's gone entirely.
The constraint: the "PLUS" second is available only with Florida Housing's conventional HFA Preferred for TBA or HFA Advantage for TBA first mortgage products. If a conventional loan works for your credit and down payment profile, this is the program to ask about by name.
Florida Hometown Heroes
Hometown Heroes makes homeownership more affordable for eligible workforce occupations, and it layers on benefits beyond the assistance itself: competitive market rates on FHA, VA, RD, and Conventional first mortgages, reduced upfront fees, and no origination points or discount points.
Eligible borrowers under the 2026 program:
- A person employed full-time by a Florida-based employer as a health care worker, school staff member, first responder, public safety or court employee, or child care worker
- A servicemember of the U.S. military or reserves, the U.S. Coast Guard or its reserves, or the Florida National Guard
- A veteran employed full-time by a Florida-based employer
The assistance is up to 5% of the total first mortgage loan amount, with a maximum of $35,000 and a minimum of $10,000, structured as a 0%, non-amortizing, 30-year deferred second mortgage. As with FL Assist, the Hometown Heroes loan is not forgivable — it becomes due and payable in full upon sale, refinance of the first mortgage, transfer of deed, or when the home is no longer your primary residence.
What this looks like in Florida numbers
Illustrations of the formulas, not quotes:
- Melbourne: on a $300,000 first mortgage, Hometown Heroes at 5% is up to $15,000; an HFA Preferred PLUS second at 5% is $15,000, forgiven at $3,000 per year.
- St. Augustine: on a $400,000 first mortgage, Hometown Heroes at 5% is up to $20,000.
- Miami: on a $750,000 first mortgage, 5% would be $37,500 — so Hometown Heroes caps at $35,000.
Your figures depend on your loan amount, program, and terms in effect when you lock.
How to choose
Work down in this order:
- Do you qualify for Hometown Heroes? The rate benefit, waived origination and discount points, and up to $35,000 usually make it the strongest package for eligible workforce buyers.
- Can you use a conventional HFA Preferred or HFA Advantage first mortgage? If so, the PLUS second is the only option that is actually forgiven — 20% a year for five years.
- Otherwise, FL Assist at up to $10,000 with no monthly payment is the straightforward default.
- Consider FL HLP only if you need the extra $2,500 more than you need the borrowing power its monthly payment consumes.
One warning worth repeating
Florida Housing publishes this on its own program page, and it's worth restating: there is no cost to apply for Hometown Heroes down payment assistance. Scammers target homebuyers seeking assistance, commonly by demanding an upfront fee before providing any services, or charging to apply for the program. Avoid anyone who does this — Florida Housing asks that you report them to the Inspector General's Office at 850-488-4197.
Assistance programs are also funded in cycles and can pause when funds are committed. If a program fits you, timing matters — confirm current availability with a participating lender rather than assuming a program is open because its page is still up.
Sources
- Florida Housing Homebuyer Overview (first mortgage requirements; FL Assist, FL HLP, and HFA Preferred/Advantage PLUS terms)
- Florida Hometown Heroes Program (2026 eligible occupations, assistance amounts, structure, scam warning)
- Florida Housing Lender and Real Estate Agent Locator (participating lenders); Florida Housing: (850) 488-4197
Program terms are set by Florida Housing Finance Corporation and change without notice; details above are current as of August 2026. Income and purchase price limits apply and vary by county — confirm current limits and program availability with Florida Housing or a participating lender. This is general information, not a loan offer, a commitment to lend, or financial advice. Talk to an Xpert loan officer who works these programs to confirm current terms and your eligibility.