Blog #102: Down Payment Assistance Programs in Central Florida: What Buyers Need to Know
Down Payment Assistance Programs in Central Florida: What Buyers Need to Know
Buying a home in Central Florida is an exciting milestone, but for many first-time buyers, saving enough money for the down payment is one of the biggest hurdles. The good news? There are several down payment assistance programs available to help make homeownership more affordable. Whether you’re a first-time buyer, a veteran, or simply in need of financial support, these programs can help you cover upfront costs and get you closer to owning your dream home.
Why Down Payment Assistance Matters
Most lenders require a down payment of at least 3% to 20% of the purchase price. In Central Florida, where median home prices are rising, this could mean tens of thousands of dollars out of pocket. Down payment assistance programs (DPAs) help bridge the gap by offering grants, forgivable loans, or deferred-payment loans that reduce your upfront costs.
Popular Down Payment Assistance Programs in Central Florida
1. Florida Housing Finance Corporation (Florida Housing)
Florida Housing offers a variety of programs designed to help first-time buyers:
Florida Assist (FL Assist): Up to $10,000 in down payment and closing cost assistance. This is a deferred loan with no monthly payments, due only when the home is sold or refinanced.
Florida Homeownership Loan Program (FL HLP): Offers up to $10,000 as a second mortgage with a low monthly payment.
HFA Preferred and HFA Advantage PLUS Second Mortgage: Up to 3%, 4%, or 5% of the loan amount in down payment assistance, forgivable after five years if you stay in the home.
2. Orange County Down Payment Assistance Program
For buyers looking to purchase within Orange County, this program provides up to $30,000 in assistance for qualified applicants. Assistance is provided as a deferred loan with no payments required until the home is sold, refinanced, or transferred.
3. Osceola County First-Time Homebuyer Program
Osceola County offers income-eligible buyers up to $20,000 in down payment assistance. Funds are offered as a 0% interest, deferred-payment loan.
4. Seminole County Down Payment Assistance Program
Qualified first-time buyers can receive up to $45,000 in assistance. This program is ideal for those who meet income guidelines and plan to purchase within Seminole County.
5. City of Orlando Down Payment Assistance Program
The City of Orlando provides up to $20,000 for very-low income households and up to $10,000 for low-income households to cover down payment and closing costs.
6. National Programs for Central Florida Buyers
In addition to local programs, there are national options worth exploring:
FHA Loans: Allow as little as 3.5% down.
VA Loans (for Veterans and Active Military): No down payment required.
USDA Loans (for Rural Areas): No down payment required in eligible Central Florida areas.
Who Qualifies for These Programs?
Most programs are designed for first-time homebuyers, which means you haven’t owned a home in the past three years. Income limits and credit score requirements vary by county, but generally, you’ll need:
A credit score of 640 or higher (some programs may accept lower).
Household income within specific limits (varies by county and household size).
Completion of a homebuyer education course.
Tips for Using Down Payment Assistance Successfully
1. Start Early – Some programs run out of funds quickly each year.
2. Get Pre-Approved – Work with a lender familiar with Florida’s assistance programs.
3. Take the Homebuyer Education Course – Required for many programs but also a great way to prepare for ownership.
4. Work with a Local Real Estate Expert – A Realtor who knows Central Florida programs can guide you through the process smoothly.
Final Thoughts
Owning a home in Central Florida is possible—even if the down payment feels out of reach at first. With grants, loans, and assistance programs available at the state and local levels, first-time buyers have more support than they might realize. The key is knowing which options you qualify for and how to take advantage of them.
You don’t have to figure it all out on your own. Our Broker is here to guide you through the process and help you explore the best programs for your situation.
📞 Schedule a free phone call or Zoom meeting today, and let’s create a clear path to your first home in Central Florida.
