Best First Time Home Buyer Programs in Florida

Ready to buy your first home in Florida? You’re in luck — Florida offers a number of programs to help you afford your home. 

Benzinga has put together this guide to give you an overview of your options for the best first time home buyer programs in Florida.

Best First Time Home Buyer Programs in Florida:

• Florida Housing First Time Homebuyer Program
• Salute Our Soldiers Military Loan Program
• Florida Housing Mortgage Credit Certificate Program

Best National First Time Home Buyer Programs

• Best for FHA Loans: Rocket Mortgage® by Quicken Loans® 
• Best for VA Loans: Veterans United
• Best for USDA Loans: Caliber Home Loans

First Time Home Buyer Programs in Florida

Buying a home can be a stressful time, but first-time home buyer programs can ease the burden. These programs were created to make homeownership possible. 

Each program has its own eligible requirements, so it’s important to review each program to see if you qualify.

1. Florida Housing First Time Homebuyer Program

This program offers a 30-year fixed-rate first mortgage loan to first time home buyers. A fixed-rate loan allows you to lock in your interest rate at the time you start your mortgage. The rate won’t change throughout the lifetime of your loan, and you will make the same mortgage payment each month for 30 years. To use this program, you will need to get your mortgage through participating lenders or lending institutions. 

Eligibility Requirements: 

• You must meet qualifying income limits. The limit can vary depending on where you are buying your home.
• The home you’re buying must be under the purchase price limits set for your area.
• You must complete a home buyer education class.
• You’ll need to have a qualifying FICO score. Lenders use your FICO score to determine whether you qualify for a mortgage loan. 
• If you’re purchasing a home in a federally-designated targeted area, you may be able to participate in the program even if you’re not a first time home buyer.
• If you’re a qualified veteran, you may be eligible to participate even if you’re not a first time home buyer. 

2. Salute Our Soldiers Military Loan Program

Florida also offers a loan program specifically for military service personnel and veterans. If you are eligible, you can receive a 30-year fixed-rate first mortgage loan with a special low-interest rate. You will also be eligible to receive several down payment assistance options. 

This program is available in all 67 counties throughout Florida. Each county offers local loan officers who can help you determine your eligibility and answer questions about the program.

Eligibility Requirements: 

• The home you are purchasing must be intended as your primary residence. This program is not available if you want to buy a second home or an investment property.
• You must qualify for a first mortgage loan.
• You must meet qualifying income limits. The limit can vary depending on where you are buying your home.
• The home you’re buying must be under the purchase price limits set for that area.
• You must successfully complete a home buyer education class.

3. Florida Housing Mortgage Credit Certificate Program

The program is designed to help you save money by claiming between 10% and 50% of your mortgage interest each year as a federal tax credit. You will claim this when you complete your IRS tax return for each year that you live in your qualifying home.

The eligible credit is capped each year at $2,000 for any credit amount that exceeds 20%. The remaining mortgage interest is still eligible for the home mortgage interest deduction on your federal tax return. 

The Florida Housing Mortgage Credit Certificate can be issued alongside fixed-rate first mortgage loans as long as it’s from a participating lender. It can also be combined with Florida Housing’s Conventional Loan TBA program. As with the other programs, you can contact a participating lender if you have questions or need assistance applying for the program.

Eligibility Requirements: 

• The home you are purchasing must be used as your primary residence. 
• You may qualify if you’re purchasing a home in a federally-designated target area in Florida — even if you’re not a first time home buyer.
• If you’re a veteran, you may be eligible even if you’re not a first time home buyer. 
• You must meet qualifying income limits. The limit can vary depending on where you are buying your home and your household size.
• The home you’re buying must be under the purchase price limits set for your area and your household size.

Best National First Time Home Buyer Programs

You can find first time home buyer programs offered nationally. These 3 programs are the most common national programs — FHA loans, VA loans and USDA loans. 

FHA Loans

FHA loans are mortgages issued by the Federal Housing Administration (FHA)-approved lenders. This mortgage program is designed to help low-and moderate-income borrowers achieve homeownership. As with any home mortgage loan, you’ll need to meet certain standards in order to be eligible. 

FHA loans are a popular option for first time home buyers because the standards are typically lower than a standard mortgage loan. Each lender has a minimum credit score required from borrowers. For FHA loans, lenders accept credit scores of 580 or above if you can make a down payment of at least 3.5%. Your down payment is the money you will pay upfront for your home. You will then finance the rest of your home’s purchase price and make mortgage payments with interest to pay the remaining cost.

If your credit score is between 500 to 579, you may still be able to get an FHA loan. For these credit scores, FHA lenders require you to make a minimum down payment of 10% of your home’s purchase price. If you’re unable to make a large down payment, you may be able to receive a grant to help you out.

FHA mortgage loans are insured by the Federal Housing Administration. This means that if you default on the loan, it will pay a claim to your mortgage lender. If you qualify for an FHA loan, you will make mortgage insurance payments to the Federal Housing Administration.

To receive an FHA loan, there are additional requirements that you must meet, including:

• The home you purchase must be used as your primary residence.
• You have to move into your new home within 60 days of closing on the home.
• The home you’re purchasing must meet the minimum property standards as required by the Federal Housing Administration. An approved inspector will assess the property to ensure that it meets these standards.

Best National FHA Lender: Rocket Mortgage® by Quicken Loans®

Rocket Mortgage® by Quicken Loans® is one of the most popular online mortgage lenders.

It offers a variety of FHA mortgage loan products and an easy application process with a quick turnaround time. The experienced Rocket Mortgage® customer service team can help you with any questions along the way, including eligibility requirements and the next steps.

VA Loans

VA loans are issued by private lenders to qualified veterans, service members and some military spouses. The loans are guaranteed by the U.S. Department of Veterans Affairs (VA). Not only does the VA step in if you default on the loan, but it’s also available to assist you to avoid default in the first place. 

VA loans are a great option if you qualify because it does not require any down payment at all. It also does not require borrowers to pay for private mortgage insurance.

To qualify for a VA loan, you must meet the service requirements. If you qualify, you can use a VA loan even if you’re not a first time home buyer. Qualifying service requirements include:

• You’ve served 90 consecutive days of active duty during wartime.
• You’ve served 181 days of active duty during peacetime.
• You’ve served in the National Guard or Reserves for at least 6 years.
• You are the spouse of a military member who passed away either in the line of duty or from a service-related disability.

Best National VA Lender: Veterans United

Veterans United understands the needs of military members and veterans, making it a great option if you want to use a VA loan. The company also actively employs people who have served time in the armed forces.

One of the benefits of using this lender is that it is more flexible than competitors when it comes to approving borrowers with a significant amount of debt. It also offers an online application and prequalification process to make starting the mortgage process as simple as possible.

USDA Loans

USDA loans may be an option for you if you’re buying a home in a designated area. The U.S. Department of Agriculture (USDA) designates certain areas of the country to encourage homeownership. Usually, these are rural areas, but you may be able to find a targeted suburban area as well. The benefits of USDA loans include low down payments, competitive interest rates and flexible credit score requirements. 

Best National USDA Lender: Caliber Home Loans

Caliber Home Loans offers USDA loans with down payments as low as $0. You’ll also benefit from competitive fixed interest rates to make budgeting for your monthly payments easy. One of the greatest perks of this lender is that it offers loan consultants in many Florida counties. You can also get help with your USDA loan by reaching a customer service agent by phone or through secure online messaging.

Next Steps

If there’s a program that you think you might qualify for, congratulations! Reach out to potential lenders to confirm your eligibility and start the application process. 

Whether you’re self-employed or work for a large corporation, you’ll need to get together a file of income statements and other important financial documents. Proof of income will allow you and your lender to determine how much you can afford for a down payment and monthly mortgage. 

First time home buyer programs can make homeownership a reality!