Did you know there are exclusive Florida first-time buyer program options, grants, and mortgage loans designed to make homeownership more affordable?
If you didn’t—or aren’t fully aware of the different types and qualifications—don’t worry. We’re breaking down the mortgage loan process and highlighting the best loan options and assistance programs available to first-time home buyers. Discover what financial aid you may qualify for and take the first step toward homeownership.
From searching for a home to making an offer and closing the deal, we’ll walk you through each step.
Learn how to budget effectively for your purchase and the importance of getting pre-approved for a mortgage loan.
Explore loan options like FHA loans, USDA loans, tax credit options, and first-time Florida home buying programs that offer benefits like lower down payments and more forgiving credit requirements.
To qualify as a first-time home buyer, you must not have owned and lived in a primary residence within the past three years. While the term may suggest otherwise, it doesn’t mean you have to be purchasing a home for the very first time—only that you haven’t owned one recently. This definition, established by the IRS and stated in this tax credit fact sheet, applies broadly to various homeownership programs in Florida and elsewhere.
The criteria for first-time home buyer status and eligibility requirements for homebuyer loans and assistance programs are relatively flexible. This allows more individuals, including those returning to homeownership after renting or other living situations, to take advantage of these opportunities.
The FHA Loan Program is a popular option designed to lower the barriers to purchase for first-time home buyers – specifically in terms of down payment and credit score requirements.
To qualify for an FHA loan, you’ll need a credit score of just 550 or above. And because there are no income limits, the FHA Loan Program is open to a wide pool of potential buyers, including those who earn too much for conventional home buyer assistance programs. Non first-time home buyers are also eligible.
The downside? You’ll be required to take out Private Mortgage Insurance (PMI), an added monthly expense equivalent to about 0.55% of your loan amount each year. This applies to all FHA loans and not just those with down payments under 20%.
As a first-time buyer, you’re probably most familiar with conventional mortgages, which are the established route for buyers looking to finance a home in Florida.
Conventional mortgage loans are flexible, with plenty of options in terms of how your loan is structured: fixed interest vs. variable interest, 10 or 15-year loans vs. 20-25 or 30-year loans, etc. They offer lower interest rates than personal loans and no mortgage insurance requirement if you put down at least 20%, but you will have to meet a high eligibility threshold that includes a credit score of (usually) 620 or higher and a debt-to-income (DTI) ratio below 50%.
USDA loans offer 0% down financing and low interest rates for first-time buyers looking to purchase a home in an approved rural area. The program also includes construction loans for qualifying home buyers looking to build a rural property from the ground up.
You may be eligible for a USDA loan if you make 80% or less of the median household income in your county. Home buyers making a bit more can look into USDA-guaranteed loans, which are issued by third-party lenders but feature similar benefits to USDA loans – including no minimum credit score requirement.
VA home loans provide favorable loan terms to American Veterans, service members and their surviving spouses (provided they do not remarry).
There are no down payment requirements for VA loans, and mortgage insurance is not required. As an added bonus, lender closing costs are capped at just 1% of the loan amount for their origination fees and related processing costs.
These loans are backed by the VA and issued by third-party lenders. This means that rates and eligibility requirements will vary depending on who you borrow from, though all VA loans come with reduced up-front costs and significantly lower credit score requirements than a conventional mortgage.
The Florida Housing Homebuyer Loan Program provides 30-year fixed-rate first mortgage loans to first-time homebuyers through approved lenders and financial institutions across the state.
To qualify, you must:
Qualified full-time workers can apply to the Florida Hometown Heroes Program to receive mortgage rates below market value, reduced upfront fees, and assistance with down payments and closing costs. Get help with your down payment and closing costs through a 0% interest, 30-year deferred second mortgage. This loan doesn’t require monthly payments but must be paid in full if you sell the home, refinance the first mortgage, transfer ownership, or stop living in the home as your primary residence. The Florida Hometown Heroes loan is not forgivable.
To be eligible, you must:
Florida offers programs with Down Payment Assistance in the form of a second mortgage loan to help first-time buyers with their downpayment and closing costs. This includes FL Assist, FL HLP Second Mortgage, and more. Keep in mind that this down payment assistance is only available when paired with Florida Housing’s first mortgage loan. It cannot be used as a standalone assistance program. Review all of the requirements for each before applying.
Florida homebuyers using the state’s down payment and closing cost assistance programs may qualify for a forgivable second mortgage worth 3%, 4%, or 5% of their total loan amount. When combined with Florida Housing’s HFA Preferred for TBA or HFA Advantage for TBA first mortgage options, this second mortgage is gradually forgiven at a rate of 20% per year over five years.
To be eligible, you must:
The Florida Own a Home Opportunity Program provides down payment and closing cost assistance of up to $10,000 for qualifying first-time home buyers in the state, with the specific amount varying based on the county you live in and the type of loan you take out.
There are no monthly payments for an Own a Home Opportunity loan. Instead, loan assistance is provided in the form of a deferred (or “soft”) second mortgage, where repayment is only due once you sell, refinance, or pay off your home, at which point it must be repaid in full.
To be eligible, you must:
Florida’s SHIP program is exclusively for low—and moderate-income first-time home buyers, offering 30-year deferred payment loans at 0% interest to those who meet eligibility requirements. The maximum amount you can borrow with a Florida SHIP loan depends on need and the county you are purchasing in. However, funds are allocated by the state and quite limited, with most new applicants ending up on a waitlist regardless of eligibility.
To be eligible, you must:
Provides eligible first-time home buyers in Florida with up to $12,500 in assistance for a down payment and/or closing costs. This is a deferred loan and only needs to be repaid once the purchased home is sold, refinanced, or paid off.
To be eligible, you must:
The Florida FHA Good Neighbor Next Door (GNND) Program helps certain service professionals by removing hurdles to local homeownership. Qualified applicants are entered into a lottery where they have the chance to “win” a home being sold at a considerable discount, Because Florida’s GNND is part of a larger federal program, candidate eligibility and available housing are overseen by the Department of Housing and Urban Development.
To be eligible, you must:
Fulfill your dream of homeownership through The Doce Mortgage Group’s HomeZero Program. This initiative provides 100% financing, meaning no down payment is required. Unlike many down payment assistance options, the HomeZero Program is available to both first-time and repeat home buyers. It’s a preferable solution for those who may have felt overlooked in the traditional lending landscape, including those with lower FICO scores or high-income earners who might not be eligible for other assistance programs. Benefit from up to 6% in seller contributions, along with a second loan option at 3.5% or 5%, which can be either repayable or forgivable after five years.
To be eligible, you must:
Home Buyers in select Florida counties can apply for the OAHO Grant Program to receive up to 5% of their total loan amount to help with a down payment or closing costs. This grant does not need to be repaid.
To qualify, you must:
If you’re looking for a first-time homebuyer program in West Palm Beach or statewide or wondering if you qualify for a first-time home buyer program in Florida with no down payment, know that there are multiple assistance options available to make homeownership more affordable. Take advantage of these programs to help you secure your dream home while minimizing upfront costs. Contact Alex at The Doce Mortgage Group for one-on-one assistance.
Buying your first home is a significant milestone, and navigating the process can seem overwhelming.
Step 1:
Start by reviewing your credit score and overall financial history to understand your borrowing potential. Determine how much you can afford for a home, considering your monthly budget and expenses. Begin saving for a down payment and closing costs.
Step 2:
Research different mortgage options (such as FHA, USDA, and conventional loans) to find the best fit for you. Compare lenders to secure the best interest rates and loan terms. Once you make a selection, get a pre-approval letter to strengthen your position as a buyer when making offers.
Step 3:
The next step is the house hunt, where you’ll explore various neighborhoods and home types to find your ideal match—while keeping your budget in mind
Step 4:
Once you find the right home, submit an offer based on market value and seller expectations. Be prepared to negotiate on price, contingencies, and closing costs.
Step 5:
Finalize your mortgage application with your chosen lender and provide any necessary documentation. Schedule a home inspection to assess the property’s condition and identify potential issues. Arrange for an appraisal to confirm the home’s value and ensure it aligns with the loan amount.
Step 6:
Research state and local assistance programs that offer financial benefits for first-time buyers. Apply for grants, down payment assistance, or lower interest rate programs that can make homeownership more affordable. Take advantage of these resources to maximize your savings and reduce upfront costs.
Step 7:
Review the final paperwork carefully and ensure all lender requirements are met before closing. Pay any remaining closing costs and your down payment as required. Once everything is finalized, sign the necessary documents, receive the keys, and officially become a homeowner.
Remember, navigating the real estate market can be complex, but with the right information and utilizing programs like the first-time home buyer programs in Florida, you can make informed decisions and achieve your goal of owning a home.
In order to qualify for a Florida first-time home buyer grant, you must be able to meet the eligibility requirements of the specific program you are applying for, including requirements around income, credit score, home location, and intended use for the home. You also must be planning to use the home as your primary residence.
The amount of money you need for a down payment varies depending on the loan type, but it can be anywhere from 3.5% for FHA loans to 3% for Conventional loans and 0% for our HomeZero program, USDA, VA loans, and most State Down Payment Assistance Programs.
Yes, many states and local governments, including Florida, offer programs with benefits like down payment and closing cost assistance.
Yes, you can often apply for and use multiple Florida homebuyer assistance programs together to get the most of the benefits available. For example, you may be eligible for the Florida Hometown Heroes Program and FL Assist. Some programs do have limits on combining benefits, so make sure to check beforehand.
Yes, those with low credit scores can still buy a home through programs like FHA loans, which are designed to help buyers with credit scores as low as 550.
Closing costs are fees associated with finalizing a mortgage loan, and yes, they are typically required, but some programs assist with these costs. Employees working at least 35 hours per week who are employed by a Florida-based employer can receive lower than market rates on first mortgage loans with 100% financing, reduced upfront fees waiving Florida Intangible or Note taxes, no origination points or discount points. Borrowers can receive up to 5% of the first mortgage loan amount (maximum of $35,000) in down payment and closing cost assistance. Down payment and closing costs assistance is available in the form of a 0%, non-amortizing 30-year deferred second mortgage loan.
Alex Doce NMLS 13817.
The Doce Group NMLS 2638131.
For licensing information, go to: www.nmlsconsumeraccess.org.
Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Loan approval and terms are dependent upon borrower’s credit, documented ability to repay, acceptability of collateral property, and underwriting criteria.
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