Down Payment Help for Florida's Workforce

Only the borrower's qualifying income is used for Hometown Heroes — this is different from many other DPA programs (such as Florida Bond) that count all adults in the household. The Hometown Heroes income limits are set by the Florida Housing Finance Corporation and vary by county. This means a client whose household income looks high may still qualify if only the borrower's income falls under the county limit.

Always pull the current county income limits from Florida Housing's website — they are updated annually and may change mid-program cycle.

Generally, no — the program requires first-time homebuyer status, defined as not having owned a principal residence in the past 3 years. The one significant exception is Veterans: active-duty military members and veterans employed full-time in Florida are exempt from the first-time homebuyer requirement and may have owned a home previously.

Confirm the borrower's prior ownership history carefully. If they have owned in the past 3 years and are not a qualifying veteran, they will not be eligible for this program regardless of occupation.

Yes — the Hometown Heroes program sets its own minimum of a 640 middle credit score, which is separate from and may be higher than the underlying first mortgage product's minimum. For example, a borrower may qualify for an FHA loan at 580, but the Hometown Heroes DPA layer requires 640.

Always screen the client's credit score against the DPA minimum first. If the client falls between 580–639, they may qualify for FHA but will need to improve their score before Hometown Heroes becomes available to them.

The borrower must be currently employed full-time by a Florida-based employer in an eligible occupation at the time of application and closing. Prior employment in a qualifying field without current active employment does not satisfy the requirement.

Part-time employment in an eligible occupation does not qualify — the position must be full-time. Confirm current employment status and verify the employer is Florida-based when collecting application documents.

Funds are reserved at loan reservation — after the purchase contract is executed. Florida Housing's eHousing Plus portal is used to reserve the first mortgage and the DPA funds simultaneously once a ratified purchase agreement is in hand.

Because Hometown Heroes funding is capped and distributed on a first-come, first-served basis, speed matters once a contract is ratified. Do not delay submitting the reservation. Funds can deplete within days of a new allocation opening.

A refinance of the first mortgage is one of the repayment triggers for the Hometown Heroes second mortgage. This means if the borrower refinances, the outstanding balance of the DPA loan becomes due at closing. There is no forgiveness mechanism — the full balance must be repaid at that time.

Inform clients of this at intake, especially those who may be considering a rate-and-term refinance in the near future. A client who intends to refinance within 1–3 years should weigh the cost of repaying the DPA against the benefit of the lower rate.

Hometown Heroes is available with the following Florida Housing–approved first mortgage products:

• FHA — most commonly used; 3.5% down requirement covered by DPA
• VA — strong option for military/veteran borrowers with no down payment required
• USDA Rural Development — for eligible rural properties with income-qualified borrowers
• Conventional (HFA Preferred) — Fannie Mae-backed; requires PMI below 80% LTV

Each loan type has its own qualifying requirements. Run AUS for the first mortgage product separately before layering in the DPA confirmation.

The DPA funds are disbursed by Florida Housing through eHousing Plus directly to the closing/title agent. The closing agent must be provided with the Florida Housing commitment letter and closing instructions well in advance. The funds are reflected on the Closing Disclosure as a second mortgage, not a gift.

Confirm the title company has experience with Florida Housing DPA transactions. If they don't, walk them through the disbursement process early — last-minute confusion at the closing table is avoidable with proactive communication.

All borrowers must complete a Florida Housing–approved homebuyer education course and provide the completion certificate before closing. Both online (e.g., Framework, eHome America) and in-person HUD-approved counseling sessions are accepted.

The certificate must be issued to the borrower before the DPA commitment is finalized. Enroll the client as soon as possible — do not wait until after a contract is signed. A delayed certificate can hold up closing if the timeline is tight.

The Hometown Heroes second mortgage is a lien on the property and does count toward Combined Loan-to-Value (CLTV). However, because the DPA funds are used to cover the down payment and/or closing costs — not to exceed the program cap — the first mortgage LTV is calculated normally based on the purchase price and the first loan amount.

For example, on a 3.5% down FHA loan, the DPA covers the down payment bringing the first mortgage LTV to 96.5%. The second mortgage sits in a subordinate lien position. Run the CLTV including the second mortgage amount to ensure it falls within acceptable guidelines for the first mortgage product being used.

Yes — the first mortgage must fall within Florida Housing's established loan limits, which vary by county and by loan type (FHA, Conventional, VA, USDA). Purchase price limits also apply and are set by county. These limits are updated periodically so always verify current limits in the Florida Housing program guide before quoting a maximum purchase price to a client.

Additionally, Conventional HFA Preferred loans have their own Fannie Mae conforming loan limits. If the loan amount exceeds the conventional limit, the client would need to use FHA, VA, or USDA — each of which has its own separate limit.

Hometown Heroes transactions typically require 45–60 days to close, compared to 30–45 days for a standard mortgage. The additional time is needed for dual underwriting (first mortgage underwriting plus DPA program approval through eHousing Plus), homebuyer education completion, and DPA fund disbursement coordination.

Set this expectation clearly with both the client and the real estate agent when the contract is written. A 30-day close is not realistic for most Hometown Heroes transactions. Build a 45-day minimum into all contract negotiations.