The first-time home buyer program in Florida known as Hometown Heroes now offers an unprecedented opportunity for working Floridians to get meaningful down payment and closing cost help. With the state adding $100 million in funding and expanding eligibility beyond frontline workers, this program can turn a months-long savings grind into a realistic path to ownership. This guide explains what the program does, who qualifies, how much help you can get, the mortgage choices available, and the exact steps to reserve the funds and close on a home.

Table of Contents

• Introduction
• How the assistance works: real numbers that change the math
• Who is eligible for the first-time home buyer program in Florida
• Recent changes that expanded access
• Mortgage options you can pair with the assistance
• Step-by-step: how to reserve funds and close
• Common scenarios and examples
• Practical tips to maximize the program
• Who benefits most from the first-time home buyer program in Florida
• FAQs
• Final thoughts

Introduction

The Hometown Heroes initiative is a first-time home buyer program in Florida designed to provide down payment and closing cost assistance. Launched in June 2022 originally for veterans, active duty military, nurses, teachers, and law enforcement, the program has been expanded to include all working residents in Florida. The expansion recognizes that many people who serve communities in different ways still struggle with the upfront costs of buying a home.

Why this matters: most mortgage programs require a minimum down payment of 3.5% to 5% plus another 2% to 4% for closing costs and prepaid escrows. Those numbers add up—and they are often the biggest barrier to first-time buyers. The first-time home buyer program in Florida Hometown Heroes reduces that barrier by delivering direct assistance at the closing table.

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How the assistance works: real numbers that change the math

Approved buyers can receive 5 percent of their total loan amount, up to a maximum of $35,000. That means:

• On a $350,000 purchase the assistance would be $17,500 (5% of the loan)
• The five percent assistance is capped at $35,000 for purchases $700,000 and above
• There is a minimum draw of $10,000 for purchases under $200,000

Important repayment detail: this assistance functions like a second position lien that will be due in full if the property is sold or refinanced. If you never sell or refinance, you never have to repay it. That makes it a powerful tool for buyers planning to stay in a home long-term and build equity.

Who is eligible for the first-time home buyer program in Florida

To use this Hometown Heroes offering you must meet a set of eligibility rules. The main ones are:

• First-time home buyer status: You may not have owned a primary residence in the past three years.
• Minimum credit score: 640.
• Income limits: Household income must be under 150 percent of the area median income (AMI) for your county, as defined by HUD.
• Employment: You must be employed by a Florida-based employer and work at least 35 hours per week. Being employed by a company headquartered in Florida satisfies this requirement.
• Property type: Eligible properties include single-family homes, townhomes, and FHA-approved condos. Lot and land loans are not permitted.
• Loan limits: FHA maximum loan limit is $557,750. Conventional loan limit is $726,200.

Income limits vary by county. Here are common AMI thresholds converted into the program's 150 percent ceiling, ordered roughly from lowest to highest:

• Ocala: $128,250
• Tallahassee: $129,000
• Gainesville: $130,050
• Tampa: $130,350
• Orlando: $131,700
• Jacksonville: $132,750
• Broward / Fort Lauderdale: $144,000
• Palm Beach County: $146,100
• Miami-Dade: $154,800
• Key West: $162,750

These limits matter because the first-time home buyer program in Florida targets households that need help getting over the initial financial hurdle rather than high-income buyers who can already cover the upfront costs.

Recent changes that expanded access

Key updates to the Hometown Heroes program increased both the amount of assistance and the pool of who can use it. The most important changes are:

• Maximum assistance raised to $35,000(previously $25,000). This helps buyers in the $500,000 to $700,000 range who previously hit the lower cap.
• Eligibility broadened from just frontline workers to all working Floridians. This change recognizes that Heroes take many forms and expands help to a wider group of community contributors.
• $100 million in additional funding was allocated for the 2023-2024 fiscal year to meet rising demand.

These changes make the  first-time home buyer program in Florida one of the more practical assistance tools available right now for people employed in the state who need help covering down payment and closing costs.

Mortgage options you can pair with the assistance

The Hometown Heroes program lets buyers pair the down payment assistance with four common mortgage types. Each has advantages depending on your situation:

1. FHA loans: Backed by the Federal Housing Administration, FHA loans accept lower credit scores and require a minimum 3.5 percent down payment. Pairing FHA with the five percent assistance can drastically reduce the cash needed at closing.
2. Conventional loans: Not government-insured, conventional loans usually require at least 3 percent down for first-time buyers. Interest rates can be higher than FHA or VA depending on credit.
3. VA loans: Available to eligible veterans and active military, VA loans can offer 100 percent financing—no down payment. These loans still carry loan-level costs such as a funding fee.
4. USDA loans: For buyers in eligible rural areas, USDA loans also offer 100 percent financing with no monthly mortgage insurance premium, making them a strong choice when available.

Remember the program’s loan limits when selecting a loan product: FHA maximums and conventional maximums determine your purchase ceiling under the program.

Step-by-step: how to reserve funds and close

Turning eligibility into a closed property is a multi-step process. Here is the workflow to move from qualification to closing:

1. Find a participating lender. Use the Florida Housing Finance Corporation list of approved lenders or ask a realtor for recommendations. Working with a lender experienced in Hometown Heroes speeds up approval and reservation.
2. Apply for the program. The lender will review your application, credit score, income documentation, and employment verification to determine eligibility.
3. Make an offer on a home. Once approved, you can submit offers. The lender must underwrite and approve the mortgage before the down payment assistance can be reserved.
4. Reserve the funds. After loan approval you must reserve the Hometown Heroes funds. There is typically a reservation fee equal to 1 percent of the down payment assistance amount.
5. Close on the home. At closing the lender will provide the assistance funds. Expect the reservation and loan delivery process to take 30 to 60 days; delays can extend that timeline.

Because the program operates through participating lenders, using an experienced lender and a realtor who knows the ropes can reduce friction and avoid last-minute surprises. With the right team you can even negotiate seller concessions or credits to further reduce out-of-pocket costs, potentially allowing a purchase with zero money down at closing.

Common scenarios and examples

Example 1: A buyer in Broward County making an eligible offer on a $350,000 home uses a conventional loan. The 5 percent Hometown Heroes assistance equals $17,500. That amount covers the bulk of their required down payment and a large portion of closing costs, converting what would have been tens of thousands of dollars into manageable paperwork at the lender.

Example 2: A buyer in Miami-Dade using an FHA loan on a $600,000 home would be eligible for $30,000 in assistance (5% of the loan), though they must remain mindful of the FHA maximum loan limit. If they stay within FHA limits, the assistance significantly reduces the cash needed to close.

Practical tips to maximize the program

• Talk to multiple participating lenders to compare processing speed and program experience.
• Confirm your employer’s headquarters location if you work for a large company with multi-state offices. The requirement is that the employer be based in Florida.
• Order a free credit report and correct any errors before applying. Achieving the 640 credit score threshold makes approvals smoother.
• Ask your realtor to structure offers to include seller credits toward closing costs when possible.
• Plan for the reservation fee when budgeting—typically 1 percent of the assistance amount.

Who benefits most from the first-time home buyer program in Florida

This program is ideal for:

• People who meet the first-time definition and cannot afford typical down payment and closing cost totals.
• Workers employed full-time by Florida-based companies looking to put down roots locally.
• Buyers planning to stay in their home long-term who will not need to repay the assistance through a refinance or sale.
• Buyers who pair the assistance with FHA, VA, USDA, or conventional loans strategically to reduce upfront cash needs.

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FAQs

Who counts as a first-time home buyer under this program?

You qualify as a first-time home buyer if you have not owned a primary residence in the past three years.

What is the minimum credit score required?

The program requires a minimum credit score of 640.

How much assistance can I get?

Approved buyers receive 5 percent of the loan amount up to a maximum of $35,000, with a minimum draw of $10,000 for purchases under $200,000.

Do I need to be a frontline worker to qualify?

No. The program expanded eligibility to include all working Floridians employed by Florida-based employers as of July 1, 2023.

Will I have to repay the assistance?

The assistance is due in full if you sell the home or refinance. If you keep the property and do not refinance, you will not have to repay the assistance.

Which mortgage types work with the program?

You can use FHA, conventional, VA, or USDA loans with the program. Loan limits apply depending on the type of mortgage.

Where do I find a participating lender?

Participating lenders are listed on the Florida Housing Finance Corporation website. Realtors experienced with the program can also recommend lenders.

How long does the reservation process take?

The reservation and loan delivery process typically takes 30 to 60 days, but underwriting delays can extend the timeline.

Final thoughts

The first-time home buyer program in Florida Hometown Heroes is more than a marketing slogan. With $35,000 maximum assistance, statewide eligibility for working Floridians, and multiple loan product pairings, this program eliminates the biggest initial hurdle to homeownership: upfront cash. For many buyers, it reduces what felt impossible into a realistic purchase timeline.

If you qualify, prepare documentation early, shop participating lenders for experience with the program, and work with a realtor who understands timeline and reservation logistics. With the right team, the Hometown Heroes assistance can be the difference between waiting years to save and stepping into a new home now.

If you need help buying a home, contact me at 561-609-1345 and I’ll help you get started.

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