Florida Hometown Heroes Program 2026: How It Works
Last updated 05/28/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
The Florida Hometown Heroes program provides up to $35,000 in down payment and closing cost assistance to first-time homebuyers in eligible workforce occupations—but the 2025 funding cycle is fully committed and not accepting new applications as of February 2026.
The Florida Legislature has agreed on $50 million for a new cycle in fiscal year 2026-2027, with a program reopening expected in approximately August 2026 once the budget is signed and the Florida Housing Finance Corporation processes the new funds.
- Assistance amount: Up to 5% of the first mortgage loan amount, minimum $10,000 and maximum $35,000, structured as a 0% interest deferred second mortgage.
- Not forgivable: The full balance is due when you sell, refinance, transfer the deed, or stop using the property as your primary residence.
- Eligible occupations (2025 program): Healthcare workers, school staff, first responders, public safety and court employees, childcare workers, active-duty military and reserves, and veterans employed full-time by a Florida employer.
- Income limit: Household income cannot exceed 150% of the Area Median Income for your county—limits range from roughly $142,950 to over $195,000 depending on location and household size.
- Additional benefits: Beyond the DPA, Hometown Heroes loans carry a competitive first mortgage rate, no origination points, and no discount points.
- One-time only: Participation permanently disqualifies you from all other Florida Housing first and second mortgage programs, including FL Assist and FL HLP.
The Florida Hometown Heroes Housing Program is one of the most competitive down payment assistance programs in the country: no minimum cash contribution from the buyer, a below-market first mortgage rate, and up to $35,000 in assistance with zero interest.
For eligible workers in Florida’s essential industries, it is typically the highest-value path to homeownership available.
The catch is funding. Every year the Florida Legislature appropriates a fixed amount—$50 million in 2025—and when it runs out, the program closes until the next cycle opens.
The 2025 cycle ran from August 18, 2025 to February 27, 2026: six months, more than 3,000 families, all $50 million committed. Florida’s other state DPA programs, including FL Assist and FL HLP, remain available through Florida Housing Finance Corporation while Hometown Heroes is paused.
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Current Status: 2025 Cycle Closed, 2026 Cycle Pending
The 2025 Hometown Heroes cycle is fully committed and no longer accepting new loan reservations. Florida Housing Finance Corporation confirmed on February 27, 2026 that all available funds for fiscal year 2025-2026 had been allocated, helping more than 3,000 Florida families purchase a home in the six months the program was open.
The Florida Legislature reached an agreement on $50 million in new Hometown Heroes funding for fiscal year 2026-2027 during its May 2026 budget special session. The budget was expected to pass a final legislative vote on May 29, 2026, and then go to Governor DeSantis for signature. Based on the 2025 cycle pattern—the budget was signed, Florida Housing processed the funds, and the program opened August 18, 2025—a new cycle in approximately August 2026 is the most likely outcome. No official opening date has been announced.
What to do now: Sign up for email alerts at floridahousing.org and contact a Florida Housing-approved lender to get pre-qualified before the new cycle opens. When Hometown Heroes relaunches, reservations go quickly—the 2024 cycle committed its full $150 million in approximately six weeks.
How the Program Works
Hometown Heroes provides a second mortgage equal to 5% of the first mortgage loan amount—not the purchase price. That percentage is subject to a $10,000 minimum and $35,000 maximum. On the average 2025 loan of approximately $320,000, which produced an average assistance amount of around $16,000.
The second mortgage carries 0% interest and requires no monthly payments. It is not amortized and not forgivable. The entire balance becomes due when you sell the property, refinance the first mortgage, transfer the deed, or stop occupying the home as your primary residence. There is no repayment schedule until that trigger—but when it hits, the full balance is owed in one payment.
The first mortgage is a standard 30-year fixed loan through a Florida Housing-approved lender. Hometown Heroes borrowers receive a rate below the standard Florida Housing offering plus a waiver of origination and discount points. No minimum cash contribution is required from the borrower—the DPA can cover the entire down payment and closing costs.
Loan types available with Hometown Heroes:
- FHA (minimum 3.5% down, covered by DPA)
- VA (0% down for eligible military borrowers)
- USDA Rural Development
- Fannie Mae HFA Preferred (conventional)
- Freddie Mac HFA Advantage (conventional)
The DPA is structured as a silent second mortgage and sits in second lien position behind the first mortgage. Fannie Mae and Freddie Mac conventional options require 3% down; the DPA covers that requirement entirely for qualifying borrowers.
Who Qualifies for Florida Hometown Heroes
Eligible Occupations
The 2025 program narrowed the occupation list from the original 2022 launch, which covered more than 50 professions across all Florida industries. The 2025 appropriation limits eligibility to six categories. Only one occupying borrower must qualify—a spouse or co-borrower in a different field does not disqualify the household.
Healthcare workers — physicians, nurses, therapists, dentists, pharmacists, and other licensed medical professionals employed at a Florida-based healthcare facility that provides direct patient care.
School staff members — teachers, school administrators, and education support staff employed by a Florida school system (pre-K through 12th grade).
First responders — law enforcement officers, firefighters, EMTs, and paramedics employed by a Florida-based public safety agency.
Public safety or court employees — corrections officers, probation officers, court clerks, and related judicial system workers employed by a Florida-based entity.
Child care workers — employees of licensed child care facilities operating in Florida.
Military and veterans — active-duty members of the U.S. military, U.S. military reserves, U.S. Coast Guard or its reserves, and Florida National Guard are eligible based on military service alone. Veterans must additionally be employed full-time by a Florida-based employer.
For all non-military occupations, the employer must be a Florida-based business, and the borrower must be working full-time, generally confirmed by pay stubs showing 40+ hours per week or a written Verification of Employment. The qualifying borrower must be currently employed at the time of closing; offer letters for future employment do not satisfy the requirement.
The complete occupation checklist, including documentation requirements by profession, is published by Florida Housing Finance Corporation at floridahousing.org.
Income Limits
Household income cannot exceed 150% of the Area Median Income for the county where the property is located. Limits are updated annually and vary significantly across Florida’s 67 counties. In high-cost markets like Monroe County or South Florida metro counties, the limit runs over $195,000 for a 4-person household. In lower-cost rural counties it can fall to approximately $142,950. Down payment assistance income limits differ from standard mortgage income requirements; they include all household members, not just the borrowers on the loan.
For TBA (To-Be-Announced) program loans, the lender uses credit income from the loan application. For Bond program loans, Florida Housing considers the gross annual income of all household occupants aged 18 and older—a more inclusive calculation that can disqualify higher-earning households even if only one borrower is on the loan.
First-Time Homebuyer Requirement
All borrowers on the loan must be first-time homebuyers—defined as having no ownership interest in a primary residence within the prior three years. Three exemptions apply:
- Veterans — a valid DD-214 satisfies the first-time buyer requirement regardless of prior ownership history
- Active-duty military — a valid Leave and Earnings Statement (LES) satisfies the first-time buyer requirement
- Targeted area purchases — buying in a federally designated targeted census tract waives the first-time buyer requirement for all borrowers
Members of the Reserves and National Guard are NOT exempt from the first-time buyer requirement, even though they qualify under the military servicemember occupation category. Reserves and Guard members who have owned a home in the past three years are ineligible unless purchasing in a targeted area.
Credit Score
The minimum qualifying FICO score is 640 for all borrowers. Manual underwriting requires a minimum 660. Automated underwriting approval (AUS Approve/Eligible) is required for standard underwriting; manual underwriting is permitted for FHA, VA, and Freddie Mac loans across all product types; Fannie Mae conventional loans also allow manual underwriting on Bond program transactions.
Property Eligibility
Eligible property types include single-family homes, townhomes, condominiums (following agency guidelines for the first mortgage type), and manufactured homes built in 1994 or later on a permanent foundation (single-wide manufactured homes are not permitted). The property must be located anywhere in Florida and must be the borrower’s primary residence within 60 days of closing.
Additional Benefits Beyond the Down Payment
The DPA is the headline, but Hometown Heroes delivers three other meaningful benefits that compound its value relative to a standard first-time buyer loan.
Below-market first mortgage rate. Hometown Heroes borrowers receive a first mortgage interest rate below Florida Housing’s standard offering for the same loan type. On a $320,000 loan, even a 0.25% rate reduction saves roughly $800 per year in interest—over a 30-year term that is meaningful money. The exact rate varies daily and is posted each morning on the eHousingPlus portal.
No origination or discount points. Lenders participating in Hometown Heroes cannot charge origination points or discount points. Lender fees are capped at $1,750 total (including processing and administrative fees). This eliminates a cost that can reach 1–2% of the loan amount on standard mortgages.
No minimum borrower cash contribution. Most DPA programs require the borrower to contribute 1–3% of the purchase price from their own funds. Hometown Heroes has no such requirement. The DPA can cover the entire down payment and closing costs. Buyers still need funds for the earnest money deposit (which can typically be sourced from gifts) and any pre-paid items not covered by DPA, but out-of-pocket cash requirements are exceptionally low.
Restrictions to Know Before You Apply
One-time participation restriction. Accepting a Florida Hometown Heroes loan permanently disqualifies you from all other Florida Housing first and second mortgage programs—including FL Assist, FL HLP, HFA PLUS, and any future Florida Housing program.
This applies to all borrowers and co-signers on the loan. Before choosing Hometown Heroes, confirm with your lender that a different Florida Housing program wouldn’t better serve your long-term needs.
Not forgivable. Unlike some state DPA programs that forgive the balance after a set period, Hometown Heroes carries no forgiveness provision. If you sell the home in year three or year twenty, you owe the full original second mortgage balance. There is no reduction over time.
Recapture tax risk on Bond program loans. If your first mortgage is financed through Florida Housing’s Bond program (rather than TBA), you may owe a federal recapture tax if you sell within nine years, make a profit on the sale, AND your income at sale exceeds federal limits. Florida Housing provides a Recapture Tax Brochure at closing explaining the calculation. TBA program loans are not subject to recapture tax. Ask your lender which structure applies to your loan and whether the recapture risk is material given your situation.
Purchase only. Hometown Heroes loans are for purchase transactions. Refinances are not permitted. If you refinance your first mortgage for any reason, the second mortgage becomes due in full at that point.
How to Apply
Florida Housing does not lend directly to consumers. All Hometown Heroes loans originate through approved participating lenders. To apply:
- Confirm you meet the occupation, income, and first-time buyer requirements before approaching a lender.
- Find a Florida Housing-approved lender at floridahousing.org (Lender and Real Estate Agent Locator) or ask your real estate agent for a referral.
- Get pre-qualified so you know your loan amount—this determines your maximum DPA (5% of loan amount, up to $35,000).
- Complete a HUD-approved homebuyer education course before closing. One borrower must complete the course; certificates are valid for two years.
- When the new cycle opens, your lender will submit a loan reservation in the eHousing portal. Reservations are processed first-come, first-served once Florida Housing announces the opening.
There is no cost to apply for Hometown Heroes assistance. Florida Housing Finance Corporation warns buyers to avoid any company or individual charging an upfront fee to apply—this is a scam tactic. Report suspicious contacts to the FL Housing Inspector General at (850) 488-4197.
Other Ways to Lower Your Down Payment in Florida
While Hometown Heroes is closed and the new cycle hasn’t opened, Florida’s other down payment assistance programs remain active. FL Assist provides $10,000 as a 0% non-amortizing deferred second mortgage to any income-qualified first-time buyer regardless of occupation. FL HLP provides $12,500 at 3% interest with a $52.70 monthly payment. Both are available now through Florida Housing-approved lenders. For a full comparison of Florida’s statewide programs, see the Florida down payment assistance guide.
VA loans are available to veterans and active-duty service members regardless of Hometown Heroes status and require no down payment. Eligible military borrowers who want to purchase now rather than wait for the new Hometown Heroes cycle may find a VA loan the most direct path to $0 down without any DPA program requirements.
FHA loans require 3.5% down with a 580 FICO and can be paired with Florida’s remaining DPA programs while Hometown Heroes is paused. The Florida Housing FL Assist program can stack with an FHA first mortgage for eligible buyers.
Leasehold homeownership through a community land trust offers a lower entry price by separating the cost of the home from the cost of the land. Jubilee operates in this space in Florida. Review the trade-offs of leasehold homeownership carefully—the lower purchase price comes with resale restrictions that limit how much of the appreciation you keep.
For buyers whose challenge is credit rather than cash, explore how to qualify for down payment assistance with a lower credit score. Hometown Heroes requires a 640 minimum FICO; reaching that threshold before the new cycle opens improves your position considerably.
Key takeaways
- The 2025 Hometown Heroes cycle ($50 million) is fully committed as of February 27, 2026. The program is not accepting new applications. A new $50M cycle for FY 2026-2027 is expected to open approximately August 2026 once the state budget is signed.
- Assistance is 5% of the first mortgage loan amount, minimum $10,000 and maximum $35,000, as a 0% non-amortizing deferred second mortgage. It is not forgivable.
- The 2025 program limits eligible occupations to healthcare workers, school staff, first responders, public safety and court employees, childcare workers, active military, and veterans employed full-time in Florida.
- Only one occupying borrower must meet the occupation requirement. The minimum FICO is 640. No minimum cash contribution is required from the buyer.
- Veterans with a DD-214 and active-duty military with a LES are exempt from the first-time buyer requirement. Members of the Reserves and National Guard are not exempt.
- The one-time participation restriction is permanent and covers all Florida Housing first and second mortgage programs—using Hometown Heroes means you cannot use FL Assist, FL HLP, or other Florida Housing programs in the future.
- Bond program borrowers may be subject to federal recapture tax if they sell within nine years with a profit and their income exceeds federal program limits at the time of sale. TBA program borrowers are not subject to recapture tax.
- No origination or discount points are permitted on a Hometown Heroes first mortgage, and total lender fees are capped at $1,750.
Frequently Asked Questions
When will the Florida Hometown Heroes program reopen?
No official reopening date has been announced as of May 2026. The Florida Legislature reached agreement on $50 million in new Hometown Heroes funding for FY 2026-2027 during the May 2026 special session, with a final vote expected May 29. Once signed by the Governor, Florida Housing Finance Corporation processes the funds and announces a launch date. Based on the 2025 cycle, which opened August 18, 2025 roughly seven weeks after the fiscal year began July 1, a launch in August 2026 is a reasonable expectation—but not a guarantee. Sign up for alerts at floridahousing.org.
Can I use Hometown Heroes if I’m not a first-time homebuyer?
Normally no—all borrowers must not have owned a primary residence in the prior three years. The exceptions are: veterans presenting a valid DD-214, active-duty military presenting a valid LES, and any borrower purchasing in a federally designated targeted area. Members of the Reserves and National Guard do not get this exemption and must satisfy the three-year lookback requirement.
Is the Hometown Heroes loan forgivable after a certain number of years?
No. Florida Hometown Heroes carries no forgiveness provision. Florida Housing states explicitly that the loan is not forgivable. The full balance is due whenever you sell, refinance, transfer the deed, or cease occupying the property as your primary residence—whether that’s in year two or year twenty.
Can I combine Hometown Heroes with other Florida Housing DPA programs?
No. Florida Housing prohibits stacking its DPA programs. Hometown Heroes cannot be combined with FL Assist, FL HLP, or HFA PLUS on the same transaction. Additionally, using Hometown Heroes permanently bars you from participating in any Florida Housing homebuyer loan program in the future.
Does Hometown Heroes work with VA loans?
Yes. Eligible military borrowers can pair Hometown Heroes assistance with a VA first mortgage. The VA loan covers the first mortgage; the Hometown Heroes DPA covers down payment and closing costs. Since VA loans require no down payment, the DPA is typically applied to closing costs and prepaids. Note that the VA funding fee still applies on the first mortgage unless the borrower has a service-connected disability rating—review the VA loan requirements with your lender before assuming the total cost.
What happens if I have to sell my home within a few years of using Hometown Heroes?
You repay the full original second mortgage balance at closing. There is no partial forgiveness or pro-rated reduction. For Bond program borrowers, you may also owe a federal recapture tax if you sell within nine years, made a profit, and your income has risen above federal program limits—Florida Housing provides a recapture calculation worksheet at closing. TBA program borrowers are not subject to recapture tax.
Compare Florida lenders now. Getting pre-qualified with a Florida Housing-approved lender before the new cycle opens puts you in position to move fast when Hometown Heroes relaunches. Compare home loan lenders on SuperMoney to find participating lenders and see current rates.
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