Florida’s Hometown Heroes Down-payment Assistance is Back!

The Florida Housing Finance Corporation (Florida Housing) has exciting news for full-time workers in the state of Florida! Florida’s Hometown Heroes down payment assistance program is back, thanks to an infusion of $36 million in additional funds.

This initiative aims to provide financial support to eligible full-time Florida workers earning less than 150% of their county’s area median income (AMI). Qualified homebuyers can receive down payment assistance of up to $35,000. That’s up to 5% of their initial mortgage loan amount.

To kick-start the process, potential homebuyers need to:

• engage with one of Florida Housing’s participating loan officers
• have a minimum credit score of 640
• be a first-time homebuyer (veterans are exempt from this requirement)

The History of Florida’s Hometown Heroes Program Funding

Florida’s Hometown Heroes program received a significant boost in July 2023 when the Florida Legislature allocated $100 million to help people purchase their first homes. The program was so popular, the funds ran out within two months. Still over 6,400 families were able to buy their first homes thanks to the Hometown Heroes Program.

Seeing the overwhelming demand and the rapid use of funds, Florida Housing has re-opened the program by “redirecting additional resources”. An extra $36 million has been allocated to continue helping first-time buyers become homeowners. Here are some important things to know about the program:

The funds are going fast! In less than a week the fund is down to $29 million from $36 million where it started. If you’re interested in taking advantage of the these funds, you’ll have to move fast.

Funds can be used for your down-payment, for your closings costs or to buy-down your interest rate! This is HUGE because a lower interest rate will help make your monthly mortgage payment more affordable.

The funds are not free money – The good news is the Hometown Hero program’s interest rate is lower than other down-payment assistance programs. You won’t have to pay the funds back until the mortgage is paid off. The not-so-good news is that if you sell the house, refinance it or turn it into a rental, the funds must be paid back immediately.

All-in-all the Hometown Hero program is a terrific opportunity for first time buyers. If you’re ready, don’t wait! Call me or my mortgage partner Todd Disharoon of PRMG to get moving today!