Guide to The Top 14 First Time Home Buyer Programs in Florida

In Florida, you’re generally considered a first time home buyer if you haven’t owned a principal residence in the past three years. However, exceptions apply. You may still qualify if:

• You’re a single parent who previously owned a home with a former spouse
• You’re a displaced homemaker who owned a home with a spouse
• You’re a veteran using a VA loan (prior ownership does not disqualify you)

It’s important to review the eligibility rules for each program you’re applying for, as definitions can vary slightly across different agencies and lenders.

Once you know which loan works best for you, it’s a smart move to get prequalified for a mortgage. Although you can forgo this step, doing so puts you at a disadvantage since a pre-qualified buyer who wants the same home as you will be able to bid on it first.

In addition, the process of getting prequalified for a mortgage gives you the opportunity to discuss loan options and budgeting with your mortgage broker. You’ll also learn what the maximum amount you can borrow is, which will help you determine your home purchase price range.

Florida Tip: If you’re planning to use a first time buyer program backed by Florida Housing, you must work with an approved participating lender. Your mortgage broker can guide you through the process and ensure you meet all state-level requirements.

To get prequalified for a loan as a first time home buyer in Florida, you’ll need to provide the following to your mortgage broker:

• Proof of income
• Employee verification letter
• Pay stubs from the past two months
• IRS W-2 forms and tax returns from the past two years
• Proof of assets
• Savings account
• 401(k)
• Stock dividends
• Investment account statements
• Your tri-merge credit report
• Your debt-to-income (DTI) ratio

There are many Florida-specific and national loan options to help you buy your first home. Although your mortgage broker can help you navigate them, it’s a good idea to educate yourself about all the different loans that are available to first time home buyers in Florida.

Before we dive into specific first time home buyer programs in Florida, and to help you evaluate which programs may be right for you, here’s a quick look at some of the most common benefits — and a few potential drawbacks — of using a first time home buyer assistance program in the sunshine state.

Next, we’ll explore a breakdown of specific Florida-based and federal loan programs, including eligibility criteria and benefits, so you can compare your options with confidence.

First time home buyers in Florida can benefit from the following Florida-specific loan options:

5 Federal First Time Home Buyer Programs

There are several national loan options — FHA, USDA, VA, Conventional, Jumbo — available to first time home buyers in Florida.

3 Grants for First Time Home Buyers in Florida

As a result of applying for and receiving real estate grant funds, you could obtain thousands of dollars in free grant money that you may never have to pay back. These funds would help you make your down payment or supplement your mortgage.

If you aren’t prequalified for a mortgage, you have 90 days to apply after submitting your final offer.

The process of applying for a mortgage is not nearly as daunting as it used to be thanks to the mortgage industry becoming increasingly automated. For most people, getting approved is the most challenging aspect. To facilitate the process, you’ll want to connect with a highly regarded mortgage broker. They will expertly guide you through the mortgage application process and act as an official liaison between you and lenders.

Although it’s possible to work directly with your bank to apply for a home loan, a mortgage broker will have access to a large network of lenders, which enables them to identify favorable mortgage terms for you — including Florida Housing lenders for assistance programs.

The underwriter approval process is similar to the mortgage prequalification process. An underwriter will review your application to determine your ability to repay your debt based on factors such as credit score, credit history, employment history, income stability, debt-to-income ratio and assets.

Based on their findings, the underwriter will either approve, deny or suspend your application. If approved, your next step would be to get a home appraisal. If suspended, the underwriter likely needs more information before they can proceed. If denied, don’t fret — the underwriter will clearly explain why your application was rejected, so you can work with your mortgage broker to resolve any issues and apply again.

Making An Offer on A House in Florida

Once you’ve found your perfect home and are ready to make an offer, you should negotiate on the price. Don’t hesitate to walk away if a deal can’t be reached. Factors that will influence your offer include how long the house has been on the market and whether it requires any obvious repairs or upgrades. Once you have a signed offer, your lending institution will schedule an official home inspection. The home inspector’s report will reveal any unseen issues that may lead you to withdraw your offer or renegotiate.

 If you live in Florida and have any questions about buying your first home in the Sunshine State, contact one of our experienced mortgage brokers today. 

Closing on a Home in Florida

Your heart will likely be pounding in your chest from excitement as you’re about to take possession of your dream home. Only one step remains: closing on your new home with a title company.

During closing, your mortgage broker will work with you to review and sign all loan documentation, and you’ll be responsible for paying closing costs, which will likely include the following fees:

• Appraisal
• Origination
• Legal
• Title search
• Insurance
• Escrow

The total of your closing costs will depend on your mortgage option, loan amount, the type of property you purchase and its location. You may be able to offset them via various methods such as monetary gifts from family and friends depending on which loan type you chose.

If you have additional questions about becoming a first time home buyer in Florida, contact our friendly and knowledgeable team directly for more information.

Buying your first home is exciting, but it’s easy to make decisions that could cost you time, money or even your dream home. By being aware of common pitfalls — and knowing how to avoid them — you’ll be better prepared for a smoother, more successful experience as a first time buyer in Florida.

Here are some of the most common mistakes first time home buyers make:

1. Skipping Prequalification. Without it, your offer may be overlooked in favor of buyers who are already financially vetted.
2. Not Applying for All Eligible Assistance Programs. Florida offers several programs that can reduce your down payment or closing costs, but many buyers miss out simply because they don’t know they qualify.
3. Overestimating Your Budget. Getting approved for a loan doesn’t mean you should spend the full amount. Be realistic about monthly expenses and long-term affordability.
4. Underestimating Closing Costs. In addition to your down payment, you’ll need to budget for appraisal, title fees, insurance and other expenses — which can add up to 2–5% of the home’s purchase price.
5. Failing to Compare Lenders. Interest rates, fees and loan terms can vary significantly. Shopping around can lead to better savings and access to Florida Housing-approved lenders.
6. Neglecting the Home Inspection. Even if the house looks perfect, unseen issues could cost thousands in repairs. Always schedule a professional inspection before finalizing the deal.

By planning ahead and partnering with a knowledgeable mortgage expert, you can sidestep these common errors and feel confident every step of the way.

Florida’s housing market continues to shift in early 2025, with conditions gradually becoming more favorable for buyers — particularly first-time homebuyers. Rising inventory, stable median prices and a slowdown in sales activity are helping ease some of the affordability pressure seen in recent years.

Median home price for single-family homes statewide in February 2025 was $415,000, flat compared to a year ago. Condo-townhouse median price fell to $315,000, a 3.1% drop year-over-year.

Inventory is up significantly across the state, where:

• Active listings for single-family homes increased 31.6%
• Condo-townhouse inventory jumped 36% year-over-year

This shift is creating a more balanced market, as single-family homes now sit at a 5.3-months’ supply, suggesting Florida has moved out of a seller’s market and into a more neutral territory.

At the metro level, conditions still vary:

• Miami–Miami Beach–Kendall led the country in home price increases with a 10.8% rise in 2024.
• West Palm Beach–Boca Raton–Boynton Beach followed with a 6.7% increase.
• Cape Coral–Fort Myers, impacted by recent hurricanes, saw prices fall 2.9% year-over-year.

Mortgage rates are still a factor in buyer decision-making, with 30-year fixed-rate mortgages averaging around 6.8%–7.1% and 15-year fixed-rate options hovering near 6.2%–6.3%.

Meanwhile, new construction is slowly ramping up in suburban areas, offering additional inventory and modern housing options for those open to looking outside Florida’s largest metro areas.

Q: Are there multiple loan options available to first time home buyers in Florida?

A: Yes. Florida offers a range of loan options for first-time homebuyers, including state programs like Florida Assist, Hometown Heroes and Florida First, which provide down payment and closing cost assistance. You can also access national programs like FHA, VA, USDA and conventional loans. A mortgage expert can help you determine which programs you’re eligible for.

Q: Is being prequalified for a loan the same as being approved for a mortgage?

A: No. Don’t make the mistake of thinking that being prequalified for a mortgage means you’ve been approved for a mortgage. You’ll still have to secure funding by going through the standard loan application process. A mortgage broker can expedite the process by serving as a liaison between you and lenders.

Q: How much money do I need to put down on a house in Florida?

A: If you qualify for a VA or USDA loan, you’re eligible to put no money down; if you qualify for a conventional loan, you can put as little as 3% down.

Q: What credit score is needed to buy a home in Florida?

A: FHA loans require a minimum score of 580, while conventional loans typically need a 620+. The higher your score, the better your interest rate will be.

Q: Can I combine multiple home buyer assistance programs?

A: In many cases, yes — Florida Housing programs can often be layered with federal loans or local grants. Your mortgage expert can guide you.

Q: How much is the average PMI for Florida?

A: Private Mortgage Insurance (PMI) will fluctuate based on your credit score and down payment; use 0.7% for a good ballpark. For example, on a $100,000 loan, multiply $100,000 by 0.7% for a $700 annual cost, or $58.33 a month.

Q: Do I need to get a home appraisal in Florida?

A: Yes. Even if you’re completely in love with the home you’ve found, it may have hidden flaws or be overpriced. This is why underwriters require a home appraisal from a lender-approved appraiser before they’ll provide final mortgage application approval.

Q: What do home appraisers do?

A: Home appraisers review:

1. Current market trends
2. The general condition of the home
3. Square footage
4. The number of bedrooms and bathrooms
5. Additional space (e.g. basement, attic, crawl space)
6. Building materials
7. Foundation type
8. Home improvements, upgrades and added amenities
9. Neighborhood characteristics
10. Lot size
11. Recent sales of similar properties

Once the appraisal is complete, the appraiser will submit their findings to the underwriter for final review and approval. If approved, your mortgage broker will work with the lender to lock in the most beneficial interest rate prior to closing.