First-time home buyer programs in Florida: assistance, loans and real costs

Florida’s distinctive first-time buyer cost is not the transfer tax but insurance: in many coastal counties the annual homeowners premium plus flood coverage can exceed the property tax bill, and it must be escrowed from day one. That is the one sentence to keep in mind while reading the programs below.

State housing agencyFlorida Housing Finance Corporation
Median home price (approx.)$400,000 — statewide order of magnitude; metros differ
3.5% / 5% / 20% down$14,000 / $20,000 / $80,000 on the median
Property tax (effective)about 0.82% — roughly $3,280 a year on the median
Mortgage credit certificateYes — mortgage credit certificate offered
Transfer taxFlorida charges documentary stamp tax of $0.70 per $100 on the deed (0.7%; Miami-Dade uses $0.60 plus a surtax on non-single-family property), customarily paid by the seller, plus buyer-side doc stamps of $0.35 per $100 on the mortgage and a 0.2% intangible tax on the loan amount.

Florida’s first-time buyer programs

Florida Housing Finance Corporation’s Homebuyer Program offers 30-year fixed first mortgages combined with Florida Assist, the Florida Homeownership Loan Program (FL HLP) and HFA Preferred/Advantage PLUS assistance; the Hometown Heroes program, when funded by the legislature, serves frontline workers with larger assistance. Many counties run their own SHIP-funded DPA.

Down payment and closing cost assistance

Florida Assist is a 0% deferred second mortgage of up to $10,000, due on sale or refinance; FL HLP is a $10,000 second repaid over 15 years; HFA Preferred/Advantage PLUS grants 3%, 4% or 5% of the loan amount, forgivable over five years. Hometown Heroes has offered up to 5% of the loan amount (capped in the tens of thousands) when funded.

Every assistance dollar comes in one of four shapes — grant, forgivable, deferred or repayable — and the shape decides what it costs you over ten years. Get it in writing before you apply. See how down payment assistance programs work.

Tax credit for first-time buyers

Florida Housing has offered a Mortgage Credit Certificate program providing a federal tax credit on a portion of annual interest; availability depends on bond allocation, so confirm with a participating lender.

Eligibility limits

Income and purchase price limits vary by county and are published by Florida Housing; a 640 minimum credit score and a homebuyer education course are standard requirements, and the home must be a primary residence.

What closing costs look like in Florida

Florida charges documentary stamp tax of $0.70 per $100 on the deed (0.7%; Miami-Dade uses $0.60 plus a surtax on non-single-family property), customarily paid by the seller, plus buyer-side doc stamps of $0.35 per $100 on the mortgage and a 0.2% intangible tax on the loan amount.

Florida buyers pay the mortgage doc stamps and intangible tax (about 0.55% of the loan) plus title and lender fees; total buyer closing costs commonly run 2% to 3%, with homeowners insurance premiums — among the highest in the nation — a large prepaid item. The closing costs guide shows what is negotiable; seller concessions shows how much a seller may contribute on each loan type.

Example: $400,000 home, three ways to finance it

Worked on Florida’s rough $400,000 median (your county may be far above or below) at an illustrative 6.5%: down payment, loan amount, principal and interest, and the monthly share of property tax at the state’s approximate 0.82% effective rate, or about $3,280 a year. Exclude nothing else from your own budget — insurance, PMI, HOA dues all apply.

StructureDown paymentLoan amountP&I at 6.5% (30 yr)Property tax / mo (est.)
FHA, 3.5% down$14,000$386,000$2,440$273
Conventional, 5% down$20,000$380,000$2,402$273
Conventional, 20% down (no PMI)$80,000$320,000$2,023$273

Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.

Frequently asked questions

Does Florida have down payment assistance for first-time buyers?

Florida Assist is a 0% deferred second mortgage of up to $10,000, due on sale or refinance; FL HLP is a $10,000 second repaid over 15 years; HFA Preferred/Advantage PLUS grants 3%, 4% or 5% of the loan amount, forgivable over five years. Program terms and amounts change with funding — confirm the current version with Florida Housing Finance Corporation or an approved lender before you count on a figure.

Is there a first-time home buyer tax credit in Florida?

Florida Housing has offered a Mortgage Credit Certificate program providing a federal tax credit on a portion of annual interest; availability depends on bond allocation, so confirm with a participating lender. A Mortgage Credit Certificate is a federal income tax credit, claimed each year on your return, not cash at closing.

What are typical closing costs when buying a house in Florida?

Florida buyers pay the mortgage doc stamps and intangible tax (about 0.55% of the loan) plus title and lender fees; total buyer closing costs commonly run 2% to 3%, with homeowners insurance premiums — among the highest in the nation — a large prepaid item. Florida charges documentary stamp tax of $0.70 per $100 on the deed (0.7%; Miami-Dade uses $0.60 plus a surtax on non-single-family property), customarily paid by the seller, plus buyer-side doc stamps of $0.35 per $100 on the mortgage and a 0.2% intangible tax on the loan amount.

Guides for first-time buyers

Same state, other questions: hard money rules in Florida · foreclosure in Florida.

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