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Down Payment Assistance Guide for Volusia County, Florida Residents
Buying a home is an exciting milestone, but for many Florida residents, saving for a down payment can be a significant barrier. Fortunately, there are numerous down payment assistance (DPA) programs available to help first-time homebuyers and others achieve their dream of homeownership. In this guide, we’ll explore various DPA programs in Florida, their eligibility requirements, and how you can apply.
Understanding Down Payment Assistance
Down payment assistance programs provide financial aid to eligible homebuyers to cover some or all of their required down payment and, in some cases, closing costs. These programs are often funded by state or local governments, nonprofit organizations, and even some private lenders. Assistance typically comes in the form of grants, forgivable loans, or low-interest second mortgages.
Statewide Down Payment Assistance Programs in Florida
Florida Housing Finance Corporation (Florida Housing) Programs
Florida Assist Loan Program: Offers up to $10,000 in down payment and closing cost assistance as a deferred second mortgage with 0% interest. Repayment is due when the home is sold, refinanced, or ownership is transferred.
HFA Preferred and HFA Advantage PLUS Second Mortgage: Provides 3%, 4%, or 5% of the loan amount as a forgivable second mortgage, which is forgiven after five years if the borrower remains in the home.
Salute Our Soldiers Military Loan Program: Specially designed for veterans and active-duty military members, offering down payment assistance and favorable loan terms.
State Housing Initiatives Partnership (SHIP) Program
Administered at the county level, SHIP provides financial assistance to low- and moderate-income homebuyers through grants and low-interest loans.
- Hometown Heroes Program
The Florida Hometown Heroes Housing Program makes homeownership affordable for eligible community workforce.
This program provides down payment and closing cost assistance to first-time, income-qualified homebuyers so they can purchase a primary residence in the community in which they work and serve. The Florida Hometown Heroes Loan Program also offers a lower first mortgage interest rate and additional special benefits to those who have served and continue to serve their country.
Program Details:
- Eligible full-time workforce, employed by a Florida-based employer can receive lower than market interest rates on an FHA, VA, RD, Fannie Mae or Freddie Mac first mortgage, reduced upfront fees, no origination points or discount points and down payment and closing cost assistance.
- 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 cost assistance is available in the form of a 0%, non-amortizing, 30-year deferred second mortgage. This second mortgage becomes due and payable, in full, upon sale of the property, refinancing of the first mortgage, transfer of deed or if the homeowner no longer occupies the property as his/her primary residence. The Florida Hometown Heroes loan is not forgivable.
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Who Qualifies for Down Payment Assistance?
Eligibility for DPA programs varies, but common requirements include:
Being a first-time homebuyer (defined as not owning a home in the past three years)
Meeting income limits, which vary by program and location
Purchasing a home in a designated area
Completing a homebuyer education course
Meeting credit score requirements (often 620 or higher)
Using the home as a primary residence
How to Apply for Down Payment Assistance
Research Available Programs: Identify programs that fit your needs and location. I can help you with this, just ask me how.
Check Eligibility Requirements: Review income limits, credit score requirements, and other criteria. I can help you with this, just ask me how.
Complete a Homebuyer Education Course: Many programs require a HUD-approved course.
Find a Participating Lender: Work with a lender familiar with DPA programs. I can help you with this, just ask me how.
Apply for Assistance: Submit an application with necessary documentation, including income verification and loan pre-approval. I can help you with this, just ask me how.
Purchase Your Home: Once approved, use the funds to cover your down payment and closing costs. I can DEFINITELY help you with this, just ask me how 🙂
Next Steps
Down payment assistance can make homeownership more accessible for Florida residents. By taking advantage of these programs, prospective buyers can reduce the financial burden of purchasing a home. If you’re considering buying a home in Florida, explore your options and take the first step toward making your homeownership dreams a reality.
For more information, visit Florida Housing’s official website to research programs.
I host a monthly webinar (FREE) all about Down Payment Assistance in Volusia County. You can sign up here for the next webinar. I also provide free gifts and lender connections (who are already prepared to save you money by reducing fees and helping you shop which programs you qualify for).
Simply email me at [email protected] with questions or to get on the invite list for our next webinar.
Lastly, you can book a time on my calendar here to have a 1 on 1 phone consultation to review your unique situation.
