First-time homebuyer grants and loans in Florida in 2023

For any citizen to buy their first home is very difficult because of the amount of money you have to have in savings, and because of the high cost of housing. Fortunately, there are many programs and grants to make buying a first home easier.

More information: Mortgage loans frequently asked questions

We are going to explain all the grants, programs and subsidies that exist for first home buyers in Florida during the year 2023, there are local, state and national grants.

Some of the assistance are based on different types of mortgage loans, while others are direct grants that give you money to cover upfront costs. The ideal is to look for all the possible aids to achieve the objective of buying a first home.

Most people are familiar with the national programs, but there are many state and local programs that you may want to know about.

Information about the housing market in Florida

Before showing the list of grants, we look at the average characteristics of home purchases in Florida. This way we can know the market conditions and the approximate amount of money we need to buy a house in Florida in 2023.

• Average purchase price: $377,700
• Minimum mortgage down payment in Florida (3%): $11,331
• Down payment in Florida (20%): $75,540
• Average credit score: 701
• Maximum Buyer Subsidy: $40,000 (North Miami)

Buyers of a home in Florida will be required to make a down payment of 20% of the price, the other 80% of the price can be paid through a mortgage.

The 3% minimum down payment amount refers to mortgages available through assistance programs, and is based on a mortgage with a minimum credit score of 620.

First-time homebuyer loans in Florida

First-time homebuyers in Florida who have money for a 20% down payment can get a conventional mortgage with a low interest rate. In addition, they will never have to pay private mortgage insurance (PMI). The same is true for buyers anywhere in the country.

Few first-time buyers have saved a 20% down payment. If you are one of the lucky ones you can apply for a mortgage at any of the top banks in Florida, having enough money it is normal that you have a good credit score and can apply for any of the mortgages from TD Bank, Wells Fargo, or any bank that operates in Florida.

Florida home buyers can often get a new home with as little as 3% or even 0% down payment using one of these mortgage programs:

• Conventional 97: From Freddie Mac or Fannie Mae. Down payment of 3% and minimum credit score of 620. You can usually stop paying mortgage insurance after a few years.
• FHA Loan: Backed by the Federal Housing Administration. 3.5% down payment and a minimum credit score of 580. But you are locked into mortgage insurance until you refinance to a different type of mortgage, move, or pay off your loan.
• VA Loan: Veterans and service members only. Zero down payment required. Minimum credit score varies by lender, but is often 620. No ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply for them if you are eligible
• USDA loan: for those with low to moderate incomes buying in designated rural areas, these are mortgages insured by the Department of Agriculture. Zero down payment is required. Credit score requirements vary by lender, but often 640. Low mortgage insurance rates.

Depending on the loan program you choose, you could get a home with very little cash out of pocket.

If you're not sure which program to choose for your first mortgage, your loan officer can help you find the right match based on your finances and home buying goals.

Florida Housing Finance Corporation Assistance

Anyone looking for assistance in buying a first home in Florida should start with the Florida Housing Finance Corporation (FHFC).

The FHFC operates throughout the state of Florida and will help you find an approved lender to walk you through the entire home buying process. The FHFC will also connect you with a homebuyer education program.

You will need to take a Florida homebuyer education class to get help from the FHFC. These programs offer valuable information and can often be completed in a few hours online.

If you purchase through FHFC you must use one of the lenders on the corporation's approved list to get the maximum help, including down payment assistance, from FHFC.

You will need a credit score of 640 or higher to be in line for assistance from Florida Housing Finance Corporation.

Your home purchase price and income must be below the limits established for each county. You can check those limits with the FHFC tool, enter the number of people in your household, the county in which you want to buy a home, and your limits.

Some of the assistance available through the FHFC includes the following:

• Florida Assist: A loan of up to $7,500 at 0% interest and no monthly payments. You must pay the full $7,500 when you refinance or vacate the property.
• HFA Second Mortgages: Borrow up to 3%, 4% or 5% of the loan amount as a second mortgage with a 0% interest rate and no monthly payments. The loan is forgiven at a rate of 20% each year, so after five years you owe nothing.
• Florida Homeownership Loan Program: Borrow up to $10,000 at a 3% interest rate repayable in monthly installments over 15 years. If you refinance, pay off the loan early, sell or transfer the deed, you will have to pay the remaining balance in full.

Other Florida homebuying assistance

In the previous sections we have indicated that the best way to look for housing programs is the FHFC, but there are also many other programs and assistance that depend directly on the counties and cities.

The U.S. Department of Housing and Urban Development (HUD) provides a list of specific homeownership programs in cities and counties in Florida. You can view the list of assistance by county here, and within each county you can also view assistance by city.

Español: Ayudas para primeros compradores de casa en Florida