Hometown Heroes Program
Up to $35,000 in Down Payment and Closing Cost Assistance
The Hometown Heroes program is the flagship Florida homebuyer assistance program for 2026. It provides up to $35,000 as a 0% interest, deferred second mortgage (subject to program requirements, funding availability, and may change). That means you do not pay anything until you sell the home, refinance, or pay off your first mortgage.
Key Details
- Assistance amount: Up to $35,000 or 5% of the purchase price (whichever is lower)
- Interest rate: 0%
- Repayment: Deferred until sale, refinance, or payoff of first mortgage
- Eligible occupations: 50+ including teachers, nurses, firefighters, police, EMTs, childcare workers, military, healthcare workers, and more
- Credit score: Minimum 640
- Income limit: Up to 150% of Area Median Income (typically $143K to $195K)
- First-time buyer? Yes (no primary residence in past 3 years)
Funding is limited and distributed on a first-come, first-served basis. The 2025 cycle served over 3,000 families before funds were fully committed. If you qualify, apply as soon as possible.
FL Assist Program
$10,000 in Down Payment Help
FL Assist provides $10,000 in down payment and closing cost assistance for first-time homebuyers in Florida (subject to program requirements and may change). Like Hometown Heroes, it is structured as a 0% interest, deferred second mortgage. The key difference is that FL Assist has broader eligibility and is easier to qualify for.
Key Details
- Assistance amount: $10,000
- Interest rate: 0%
- Repayment: Deferred until sale, refinance, or payoff
- Credit score: Minimum 640
- Can combine with: FHA, VA, USDA, and conventional loans
FL Assist is a great option if you do not qualify for Hometown Heroes or if you want to stack assistance with other programs.
FHA Loans
3.5% Down, Flexible Credit Requirements
FHA loans are the most popular loan type for first-time buyers in Florida. They require only 3.5% down and accept credit scores as low as 580. Because the loans are insured by the Federal Housing Administration, lenders can offer more flexible terms.
- Down payment: 3.5% (with credit score 580+)
- Credit score: 500 minimum (10% down) or 580 (3.5% down)
- DTI limit: Up to 43% (up to 57% with compensating factors)
- Loan limit (Palm Beach/Broward): $541,287 for single-family
- Mortgage insurance: Upfront MIP (1.75% of loan) + annual MIP (0.55% for life if under 10% down)
FHA loans are especially good for buyers with credit scores between 580 and 680 or those who have limited savings for a down payment.
VA Loans
Zero Down Payment, No PMI
If you are a veteran, active-duty service member, or surviving spouse, a VA loan is one of the best benefits available. VA loans require zero down payment and have no private mortgage insurance. They also offer competitive interest rates and flexible credit requirements.
- Down payment: 0%
- Credit score: No official minimum (most lenders want 620+)
- PMI: None
- DTI limit: Flexible, typically up to 41-50%
- VA funding fee: 2.15% to 3.3% (can be rolled into loan; waived for disabled veterans)
For eligible buyers, the VA loan is arguably the best mortgage program in the country. No down payment, no monthly mortgage insurance, and flexible underwriting make it significantly cheaper than most other options.
USDA Loans
Zero Down for Eligible Rural and Suburban Areas
USDA loans offer zero down payment for homes in eligible rural and suburban areas. Parts of western Palm Beach County and Broward County qualify. Income limits apply, but for buyers at the $60,000 to $80,000 income level, this can be an excellent option.
- Down payment: 0%
- Credit score: Typically 640 minimum
- Income limit: Varies by county (typically around $110,000 for 1-4 person households)
- PMI: Lower than FHA (annual fee of 0.35%)
- Property eligibility: Must be in a USDA-eligible area
HFA Preferred
Reduced Mortgage Insurance, Below-Market Rates
The Florida Housing Finance Corporation's HFA Preferred program offers below-market interest rates and reduced mortgage insurance for qualifying first-time buyers. It works with FHA, conventional, and other loan types and is available through Florida Housing-approved lenders.
- Down payment: As low as 3% (conventional) or 3.5% (FHA)
- Mortgage insurance: Significantly reduced compared to standard loans
- Eligibility: First-time buyers or veterans
- Income limit: Varies by county
Conventional 97 (Fannie Mae)
3% Down for Qualified Buyers
Fannie Mae's Conventional 97 program allows qualified buyers to purchase a home with just 3% down. Credit score requirements are higher than FHA (minimum 620), and you will need private mortgage insurance. But conventional loans avoid the upfront MIP that FHA charges, and PMI drops off automatically when you reach 20% equity.
This is a strong option if you have good credit (680+) and want lower overall costs over the life of the loan.
How to Choose the Right Program
Here is a simple way to narrow down your options:
Start here if:
- You work in an eligible occupation: Check Hometown Heroes first ($35K assistance)
- You are a veteran: VA loan is almost always your best option
- You want the lowest down payment: VA or USDA (0% down)
- Your credit is below 620: FHA is your most realistic option
- Your credit is above 680: Compare Conventional vs FHA for long-term cost savings
- You need extra help with costs: Stack FL Assist with an FHA or conventional loan
Your Next Steps
The most important thing you can do is talk to a lender who knows these programs. Many buyers qualify for programs they did not know existed. Austin Edwards at Ocean Blue Lending works with Florida Housing programs every day and can help you figure out which combination of programs works best for your situation.
Start by getting pre-approved. That will give you a clear picture of your budget, and your lender can guide you toward the best programs for your income, credit, and goals.
Visit our complete financing page for more details on every program.
Not Sure Where to Start?
Call or Text Ryan at 561-915-8590 or Austin Edwards at Ocean Blue Lending at 561-426-8238. A free consultation can save you thousands and show you programs you did not know existed.