Buying your first home can feel overwhelming, especially when it comes to finances. Thankfully, first time home buyer programs in Florida can make the process more affordable by offering down payment assistance, assistance with closing costs, mortgage programs with competitive rates, and even a zero interest deferred loan or two. Whether you’re looking at new construction homes or a cozy starter house, there are plenty of options to help make homeownership a reality.
If you’re wondering whether you qualify for Florida first time home buyer programs, you’re in luck. The definition of first time home buyers in Florida isn’t as strict as it sounds. Most first time home buyer programs in FL consider you a first time buyer if you haven’t owned a home in the last three years. That means more people than you’d expect can take advantage of first time home buyer programs in Florida.
In this guide, we’ll break down the different types of Florida first time home buyer programs, including payment and closing cost assistance, low-interest conventional loans, and special financing options.
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First Time Home Buyer Tax Credits & Down Payment Assistance in Florida
When looking for first time home buyer programs in Florida, you may want to start with a down payment assistance program. As a first time home buyer in Florida, you’ll likely need some assistance with the down payment and closing cost. While a federal first-time home buyer tax credit no longer exists, there are plenty of down payment assistance programs in Florida that you can utilize instead.
Florida Assist Second Mortgage Program
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The Florida Assist Second Mortgage Program is one of the best first time home buyer programs in Florida, offering down payment and closing cost assistance in the form of a deferred payment loan. This down payment assistance program is provided by Florida Housing, allowing eligible borrowers to receive up to $10,000 in the form of a second mortgage loan. This is a 0% non-amortizing second mortgage. You’ll repay this loan when you pay off your mortgage, no longer use your home as your primary residence, sell or transfer your property, or refinance the original loan.
Florida Homeownership Loan Program
Also provided by Florida Housing, the Florida Homeownership Loan Program is one of the most popular Florida first time home buyer programs. This payment assistance program is one of the best mortgage loans, offering $10,000 as a 3% fully-amortizing, second mortgage with a 15-year term. This mortgage must be paid off over 15 years unless you move, refinance, or sell or transfer ownership of the property. If any of these situations happen, then you must repay in full.
HFA Advantage
This down payment assistance program is designed to help with the down payment and closing cost and provides qualified borrowers with 3, 4, or 5 percent of the first mortgage amount to use toward the down payment and closing costs. With this loan, there is no interest and it is forgiven after 5 years.
First Time Home Buyer Loans in Florida
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If you’ve got the down payment and closing cost covered, then you may want to explore first time home buyer programs in Florida that come in the form of regular loans or mortgage loans. The fastest way to secure a first time home buyer loan in Florida is typically to get a loan pre-approved by the bank. Getting pre-approved lets the seller know that you are serious about purchasing a home. Factors such as your credit score, mortgage payment, and estimated down payment can affect your pre-approval.
When you are getting pre-approved, you should follow the 28/36 rule. This rule states that your total housing costs should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. Oftentimes, to qualify for Florida first time home buyer programs or a first time home buyer grant in Florida, you need to be purchasing your home in an approved area, complete a homebuyer education course, and use the home as your primary residence. Sometimes, the purchase price for your home must also be below a certain limit.
These are just a few of the best first time home buyer programs in Florida.
Florida Housing Homebuyer Program
This is one of the best first time home buyers in Florida and is offered by the Florida Housing Finance Corporation. The Florida Housing Finance Corporation helps with everything from closing cost assistance to low income home loans. This homebuyer program offers 30-year fixed rate first mortgage loans. To qualify for this loan, you must meet the following criteria:
- Have a minimum credit score of 640
- Work with an approved participating Program Lender
- Must complete a home buyer education course
- Purchase price must be below the limits for the county in which you purchase
- Income must be below the limits for the county in which you purchase
- You must meet the IRS definition of a first time home buyer.
Florida Hometown Heroes Program
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When it comes to first time home buyer programs in Florida, the Florida Hometown Heroes Program is one of the best. This program is offered to eligible frontline community workers such as law enforcement officers, firefighters, teachers, healthcare professionals, and active military or veterans. These workers can receive below-market rates on mortgages, lower upfront fees, and down payment and closing cost assistance. The down payment and closing cost assistance may total up to 5% of your loan amount, between $10,000 and $35,000.
To qualify for this program, you must work in a qualifying profession, qualify for a conventional FHA, VA, or USDA loan, have a primary residence within the limit for your county, and have an income within the limit for your county.
FHA Loan
This is not only one of the best first time home buyer programs in Florida, but also one of the best nationally-available conventional loans. For this loan, you must meet a minimum credit score. FHA loans require a down payment of as little as 3.5% with a 580 credit score.
VA Loan
If you need first time home buyer assistance as a military member or veteran, then VA loans are one of the most useful first time home buyer programs in Florida. This type of loan typically does not require a down payment.
USDA Loan
One of the best first time home buyer programs in Florida, a USDA loan requires that your primary residence be in a USDA-eligible rural area, and you’ll need a minimum credit score of 640.
Good Neighbor Next Door Program
When it comes to first time home buyer programs in Florida, make sure you check out the Good Neighbor Next Door Program. This is a HUD program that allows you to save 50% on the purchase price.
First Time Home Buyer Programs in Tampa/Hillsborough County
Many people who are looking into first time home buyer programs in Florida will make Tampa or Hillsborough County their primary residence. Luckily some of the best first time home buyer programs in FL are Tampa-specific. And if you’re buying a home in the Tampa area, make sure you check out the best Tampa real estate agents!
Dare to Own the Dream
One of the best first time home buyer programs in Florida, Dare to Own the Dream is a great option for eligible borrowers in Tampa. You must be located within the city limits of Tampa and you cannot be under contract before starting the process. Additionally, your income must be at or below 140% of the Area Median Income. This loan offers collaboration with city-approved counseling agencies, loan officers, and real estate agents for extra support.
The purchase price limits are up to $450,000, and you can receive up to $50,000 in assistance for down payment and closing costs. This is a deferred-payment loan that is completely forgiven after 20 years of ownership and occupancy.
East Tampa CRA Down Payment Assistance Program
If you’re buying a house in Tampa, you should check out the East Tampa CRA Down Payment Assistance Program. Eligible borrowers can use this program to enjoy forgivable loans up to $50,000 who purchase a home within a Tampa CRA boundary. You are eligible to apply if you have a household income between 50% and 140% of the Area Median Income. You can use the Fannie Mae AMI Lookup Tool to check your Area Median Income.
Florida First Time Home Buyer Programs FAQ
Are First Time Home Buyer Programs in Florida Worth It?
Absolutely! First time home buyer programs in Florida can make Florida housing more affordable. Whether you need down payment help, a zero interest loan, or a second mortgage, these programs can make homeownership smooth and simple.
Who Is Considered a Florida First Time Home Buyer?
A first time home buyer in Florida is someone who hasn’t owned a primary residence in the past three years.
What Programs Are Available for First Time Home Buyers in Florida?
Some of the most popular first time home buyer programs in Florida include the Florida Housing Homebuyer Program and Florida Hometown Heroes.
Do You Have to Pay Back Down Payment Assistance in Florida?
This depends on your specific program. Some are grants, while others are deferred, zero-interest loans that will become due when you sell or pay off your first mortgage.
Give 2 College Brothers a Call for Your Florida Moving Needs
Now that you know all of the best first time home buyer programs in Florida, are you ready to purchase your new home? Any one of these Florida first time home buyer programs will make the home buying process just a little bit easier. Once you’ve found your dream home, 2 College Brothers will help you get settled in! Give our reliable team a call today at (813) 922-1528.
