Why it's lasting longer
The rules got a lot tighter. For a couple of years almost any full-time worker in Florida could use it. Now it's limited to people who work in certain fields, like healthcare, schools and public safety. A lot of buyers still think they qualify when they don't, and a lot of people who do qualify assume the money ran out.
Who qualifies for Hometown Heroes
At least one buyer has to work full-time, in person, for one of these kinds of Florida employers:
- A healthcare facility that sees patients (hospital, doctor's office, assisted living, mental health facility)
- A K-12 public, private, charter or magnet school
- A fire department or ambulance service
- A law enforcement agency, jail, juvenile detention facility or 911/emergency operations center
- A court, State Attorney's Office or Public Defender's Office
- A licensed child care facility
The program looks at who pays you and where you physically work. For example:
- Staff at a K-12 school qualify, including janitors and cafeteria workers, not just teachers.
- A nurse at a medical billing office or a corporate headquarters doesn't, because that office doesn't see patients.
- School district offices, colleges and private law firms don't count.
- Remote workers don't qualify. Hybrid is okay if you're in the office at least three days a week.
- An offer letter alone doesn't count. You have to actually be working there full-time by closing.
Military and veterans
- Active duty: eligible no matter where you work.
- Veterans, Reserves and National Guard: you just need to work full-time for any Florida employer. It doesn't have to be one on the list.
- Veterans with a DD214 don't have to be first-time buyers.
With Patrick and the Cape right here, this covers a lot of people in Brevard.
How it works
Hometown Heroes is a second mortgage that can go toward your down payment and closing costs. Depending on the loan and how much you want to bring yourself, it can often cover the whole down payment. The amount is based on a percentage of your loan, with a set minimum and maximum, and it doesn't charge interest.
It's not free money. Some down payment programs used to forgive the assistance after a few years, and a lot of people still think that's how it works. Hometown Heroes isn't forgiven. It comes along with your first mortgage, and there's no monthly payment on it, but you pay it back in full when you sell, refinance, pay off your first mortgage, or move out. That includes moving out and renting the home. It's due either way.
Don't qualify? There are other programs
Hometown Heroes gets the attention, but in practice a lot of buyers don't qualify for it. Many more qualify for Florida Housing's other down payment programs, which don't require you to work in a certain field or for a certain kind of employer.
- FL Assist: a second mortgage with no monthly payment, paid back when you sell, refinance or move out.
- FL HLP: a second mortgage with a small monthly payment.
These have the same basics as Hometown Heroes. You need to be a first-time buyer (veterans and buyers in certain census tracts are exempt), stay under the income and price limits, live in the home, and take a homebuyer class. You can only use one Florida Housing program, and only once.
Depending on your income and where you're buying, there may be other down payment programs out there too. Tell me about your situation and I'll help you figure out which ones you can qualify for, or whether you're better off without one.
Other requirements
- You still have to qualify for the loan itself. These programs sit on top of an FHA, VA, USDA or conventional loan, so your credit, income, debts and the property all have to meet that loan's rules too. Qualifying for the program alone isn't enough.
- Credit score: minimum of 640.
- First-time buyer: you can't have owned and lived in a home in the last three years, unless you're exempt. If you own any other property, like a rental, tell me up front, since it can affect your options.
- Income and price limits: these vary by program and county.
- Primary residence: it has to be where you live.
- Homebuyer education: one buyer has to take an approved class before closing. It can be done online.
Not every home works
Single-family homes and townhomes are the easy ones. Condos have to meet the usual condo rules for the loan type (here's why Brevard condos got harder to finance). Some properties, like many manufactured and mobile homes, usually won't work with these programs. If you're not sure about a home, call me before you make an offer.
The rate is the same with every lender
The interest rate on Hometown Heroes and the other Florida Housing programs is set by the program, not by the lender. Every participating lender gets the same rate on the same day, and you can't get a better one by switching lenders. What's different is who you're working with: how fast they move, whether they know the program, and whether they'll actually answer the phone.
It's first come, first served
The money can only be reserved once you're pre-approved and under contract. When it's gone, it's gone unless the state funds it again. If you think you qualify for any of these programs, get pre-approved now so you're ready when you find the house.