First-time and repeat buyers
Down payment assistance in Northeast Florida
Down payment assistance is not free money and nobody should let you believe it is. It is a second mortgage, and it is often an excellent trade. You just have to know what you signed.
The basic idea
What down payment assistance actually is
Assistance programs do not change your main loan. You still get an FHA, VA, USDA or conventional first mortgage, underwritten normally. What assistance does is put a second lien behind it, covering some or all of your down payment and closing costs.
That second lien has terms. It might be deferred with no payment until you sell or refinance. It might be forgiven over a period of years. It might carry a payment from day one. Those three outcomes are very different, and the difference is written into the note you sign at closing.
Ask one question before you accept any assistance: "When and how does this get repaid, and what happens if I sell in three years?" If the answer is vague, get it in writing. Everything else about the program is detail; that is the substance.
The main state program
Florida Hometown Heroes
Run by Florida Housing Finance Corporation for full-time employed Floridians buying a primary residence. Despite the name it is not limited to a short list of occupations — the current version is open broadly to full-time Florida workers who meet the income and eligibility requirements.
As published by the program administrator, eHousingPlus, in August 2026:
- Assistance of 5% of the first mortgage amount, capped at $35,000.
- A minimum credit score of 640.
- Layered on top of an FHA, VA, USDA-RD, Fannie Mae HFA Preferred or Freddie Mac HFA Advantage first mortgage.
- Primary residence only, with income and purchase price limits that vary by county.
- Funding is finite. Rounds open and close, and money runs out.
Terms change between program years and sometimes within them. Confirm the current version with a participating lender and check the official program page at floridahousing.org before you make plans around it.
The practical obstacle
Not every lender can do this
This is where most buyers lose the program. Florida Housing loans can only be originated by an approved participating lender, or by a broker who can place the file with one. A lender who is not on the list will tell you it is complicated, or slow, or not worth it — which may be their honest view, or may simply mean they cannot do it.
The administrator publishes the current participating-lender list at ehpuniversity.com/fhfc-lenders. Check it yourself against whoever you are talking to. My lender directory notes which of the companies listed there publish an NMLS ID that also appears on that list.
Ask on the first phone call: "Are you an approved Florida Housing participating lender, and how many Hometown Heroes files have you closed this year?" The second half of that question is the one that tells you something.
Other routes
Other ways to solve a down payment problem
State assistance is not the only answer, and sometimes it is not the best one. Here are the other levers, roughly in order of how often they actually work.
A zero-down loan program
If you qualify for VA or USDA, you may not need assistance at all. USDA covers a great deal of Baker County and the rural edges of Clay and Nassau. VA covers eligible service. Both are worth checking before you go looking for a second mortgage.
Seller concessions
A seller contribution toward closing costs is a negotiation, and in a slower market it is often available. Programs cap how much can be contributed, so ask your lender for the limit before you write.
Lender credits
You can take a slightly higher rate in exchange for the lender covering costs. That is a real trade with a real long-run price. Ask for it priced both ways on the Loan Estimate.
Gift funds
Most programs allow a documented gift from a family member. Documented is the operative word — money must be sourced and papered properly, so tell the lender before it moves, not after.
Employer and union programs exist too, particularly for healthcare and public-sector employees, and one of the credit unions on my lender page publishes its own first-responder and city-employee products. Ask your HR department; it costs nothing.
The fine print
Things to look at before you accept
- Repayment trigger. Sale, refinance, or the day you stop occupying the home. Know which.
- Forgiveness schedule, if any, and what happens if you move before it completes.
- Effect on the first mortgage rate. Bond and HFA first mortgages sometimes price slightly above the open market. That may still be the better deal overall, but you should see both numbers.
- Income and price limits, which vary by county and household size and which are checked at closing, not just at application.
- Recapture, a tax provision on some bond-financed programs that can apply if you sell within a set period at a gain and your income has risen. Ask directly whether it applies, and ask a tax professional what it would mean for you.
- Timeline. Assistance files can take longer. Do not agree to a fast closing date and then discover the reservation process needs more time.
None of that is a reason to avoid assistance. For a lot of families it is the difference between renting and owning, and I have watched it work. It is a reason to read the note.
Common questions
Is down payment assistance free money?
No. It is a second mortgage. Some versions are forgiven over time and some are repaid on sale or refinance. Read the note and ask the lender to explain the repayment terms plainly before you accept it.
Do I have to be a first-time buyer?
It depends on the program and sometimes on the county. Several Florida Housing products define a first-time buyer as someone who has not owned a home in the past three years, and some have exceptions. Ask a participating lender to check your specific situation.
Does Hometown Heroes only apply to teachers, nurses and first responders?
The current version is open broadly to full-time employed Floridians who meet the eligibility rules, not just to a list of occupations. Program rules have changed since it launched, so confirm the current terms rather than relying on what you remember.
Can I use assistance with a USDA loan?
The program administrator lists USDA-RD among the first mortgages Hometown Heroes assistance can be paired with. Whether it makes sense is another question — if USDA already gets you to zero down, the assistance may be better used on closing costs.
What if the funding runs out?
Then you wait for the next round or you use a different route. This is exactly why I tell buyers not to build an entire plan around assistance without a fallback. Ask your lender what the reservation status is on the day you go under contract.
Trying to work out whether you can get there?
Tell me your income, roughly what you have saved and where you are looking, and I will tell you honestly whether assistance is the answer, whether USDA is a better route, or whether six more months of saving beats both.
Important notices
General information for Northeast Florida homebuyers. Not financial, tax, legal or lending advice, and not a commitment to lend. Amanda Kinard is a licensed Florida REALTOR®, not a licensed mortgage loan originator.
Program terms shown are those published by eHousingPlus, the Florida Housing Finance Corporation program administrator, in August 2026. Assistance amounts, credit thresholds, income limits, purchase price limits and funding availability change, sometimes within a program year. Confirm all of them with a participating lender and with floridahousing.org before relying on them.
Down payment assistance creates a legally binding second mortgage. Recapture tax provisions may apply to some bond-financed programs. Consult a qualified tax professional and read every document before signing.
No lender or program provider is endorsed on this page, and Amanda Kinard receives no compensation of any kind for directing business to any of them.
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