Florida Hometown Heroes:
how the money works.

Think of the purchase as three separate pieces:

Both loans are secured by your home. The assistance is called a second mortgage because it sits behind the main mortgage.

The 0% rate applies to the assistance loan. Your main mortgage still has interest and monthly payments.

The main mortgage is a 30-year fixed-rate loan through the program. TBA lists FHA, VA, USDA-RD and Freddie Mac HFA Advantage options; each lender determines which it offers.

You apply through a participating lender or its authorized broker channel. This is not a check you apply for separately and attach to any home loan.

Official Florida Housing program overview

Take your total main mortgage and multiply it by 5%. Then apply the program's $10,000 minimum and $35,000 maximum, if the loan qualifies.

These are formula examples. Loan limits, permitted uses and all other requirements still apply. The minimum does not override limits on how much total debt a home can carry.

Why isn't it $20,000 on a $400,000 house?

Because the house price and mortgage amount are different.

With a 3% conventional down payment:

1. The home costs $400,000.
2. The down payment is $12,000.
3. The main mortgage is $388,000: $400,000 minus $12,000.
4. Hometown Heroes is $19,400: $388,000 multiplied by 5%.

Of that $19,400, you could use $12,000 for the down payment. That leaves $7,400 for eligible closing costs.

Your job and income help determine whether you qualify. They do not give a police officer a larger percentage than a nurse, or increase the award simply because you earn less.

The official formula appears on page 35 of the TBA program guide. The program's reservation system calculates the assistance from the total first mortgage.

Same $400,000 home. Different down payments. Different amounts of cash needed.

These examples assume an eligible one-unit primary home, an appraisal that supports the price, and estimated closing costs and prepaids of 3% of the price: $12,000. There is no seller credit in this first table.

“Prepaids” means items such as insurance, property taxes and interest collected ahead of time. The 3% estimate is a planning number, not a quote.

¹The VA example assumes a funding-fee exemption and enough VA entitlement for zero down. It is a separate illustration, not a claim that the couple discussed below has military eligibility.

²These are Hometown Heroes TBA program minimums, not an approval. Manual underwriting requires at least 660. The lender, loan type, property and underwriting result may require more. These are not universal minimum scores for all conventional, FHA or VA loans outside HTH.

³In this VA example, $20,000 of assistance exceeds $12,000 of estimated costs by $8,000. That is unused assistance, not an $8,000 check. The lender must address it under program rules, which may mean reducing the main mortgage and applying funds toward the price. Do not treat the illustrated zero-down structure as finalized.

Why does FHA get a slightly different amount?

This FHA example adds its 1.75% upfront mortgage insurance premium to the main mortgage:

$386,000 + $6,755 = $392,755 total mortgage.

Five percent of $392,755 is $19,637.75. The financed premium is not also added to the $12,000 cash-cost estimate. FHA also has ongoing mortgage insurance, which is not calculated here.

HUD's FHA handbook

What if the VA buyer has a funding fee?

For a zero-down purchase, a first-use buyer who owes the standard 2.15% fee and finances it would have a $408,600 total mortgage on this $400,000 example. The assistance formula would produce $20,430. A subsequent-use fee can be different. Some buyers are exempt.

The calculator lets you choose the applicable fee assumption. The lender must verify it. A VA funding fee and monthly mortgage insurance are different things; VA does not require monthly mortgage insurance.

VA funding fees, exemptions and closing costs

Choose the county where you plan to buy, enter the price, and compare the four loan options. You can change the estimated closing costs and seller credit.

This estimates how the money could work. It does not approve a loan, reserve funds, quote a rate or calculate a monthly payment.

The calculator uses:

Down payment + estimated closing costs − HTH assistance − usable seller credit = estimated buyer funds needed.

A negative answer means the loan needs review for unused funds. It does not mean you receive the difference as cash. Seller credits can pay eligible costs, not your down payment. We do not count credits above estimated costs or assume every requested credit is allowed.

The result is your estimated total contribution before deposits or costs already paid. It is not necessarily the final amount you must wire at closing. Inspections, deposits or other items may require money earlier. Any costs the assistance cannot cover must be paid separately.

A seller credit is money the seller agrees to contribute toward your eligible costs. You can ask for one, but the seller does not have to agree.

For a $400,000 purchase, 3% is $12,000. If the seller agrees to pay that amount and all $12,000 of costs are eligible, the credit could cover those costs.

That leaves more assistance available for the down payment. It does not mean you get to pocket the extra money.

Example: use the assistance for the whole down payment

For a conventional purchase with no personal down-payment contribution, the main mortgage plus the assistance must equal the price. Since the assistance is 5% of the mortgage:

$400,000 ÷ 1.05 = approximately $380,952 main mortgage.

$380,952 × 5% = approximately $19,048 HTH down payment.

This rounded illustration shows how the assistance and seller credit could cover both the down payment and estimated eligible costs. Final loan terms, rounding, costs and approval still matter.

There is no rule that you must stop at a 3% down payment just because that is the minimum for your loan. Using assistance for a larger down payment changes the mortgage, and therefore changes the assistance calculation.

The current buyer question behind this example

A full-time police officer and his wife are considering a $400,000 home in Pasco County. They reported $161,000 combined annual income, a lower reported mortgage credit score of 680, and no primary-home ownership during the past three years. They want to compare conventional and FHA and are asking for a 3% seller credit.

Their reported income is below the current $172,050 Pasco TBA limit for these loan types, and 680 exceeds the published baseline score. Those facts make the program worth reviewing. They do not establish approval.

This is an illustration based on a current inquiry, not a closed Hometown Heroes loan or a promised result. The seller credit has not been confirmed as agreed. Their actual qualifying income, debts, credit, property and lender requirements still need review.

It can help you keep more cash upfront. That does not automatically make it the lowest-cost loan.

With 3% conventional down, more of the assistance may remain for closing costs. With 5% down, the main mortgage is smaller, but you may need more personal cash.

Compare two separate things:

This page answers the first question. It does not quote rates or recommend a loan from your credit score alone. Compare an HTH loan with a suitable loan without assistance before choosing.

Most buyers need to clear these checks:

Meeting one row does not replace the others. Being a police officer or nurse does not by itself guarantee assistance.

Start with where you work and who employs you, not just your job title. Only one borrower who will occupy the home needs the qualifying employment route.

These are examples, not a complete list of eligible titles. Other employees of qualifying employers may qualify too. The lender checks the employer, direct employment/payment arrangement, full-time status and physical work location.

Both police departments and sheriff's offices can fit the law-enforcement category. The employer still must be verified.

Some important differences:

• A nurse at a qualifying patient-care facility may fit. Working for a medical billing company or healthcare corporate office does not automatically fit.
• A K-12 school employee may fit. A college employee or school-district administrative-office employee is not automatically eligible.
• A public defender may fit. A lawyer at a private law firm does not qualify just because the work is legal work.
• A childcare facility needs the required licensing or exemption and program designation, such as Gold Seal, VPK, Head Start or School Readiness.

Use the official employer reference guide and, for childcare, the Florida DCF provider search.

Do I have to work 40 hours? What about remote work?

Your employer determines whether you are full-time. A qualifying full-time job can involve fewer than 40 hours. Combining two part-time jobs does not meet the full-time requirement.

Eligible hybrid employees must report to the qualifying physical workplace at least three days a week. Fully remote work generally does not qualify. Florida Virtual School teachers paid directly by FLVS have a specific exception.

A future job offer is not enough to replace current qualifying employment.

What if I am self-employed or paid on a 1099?

Do not rule it in or out from the tax form alone. The lender must check the work arrangement, qualifying employer/location, tax documents and independent verification of full-time work. Your own letter saying you work full-time is not enough.

Official self-employment checklist

Yes. It depends on the county where the home is located and the program option. Earning more does not increase the assistance award.

For the TBA conventional, FHA and VA options, the program looks at qualifying borrower income. It is not automatically every adult's household income, and it is not just the hero's salary.

If both spouses are on the mortgage, both borrowers' qualifying income counts. Usable overtime, bonuses and other recurring income cannot simply be left out to get below the limit. Income the mortgage rules do not allow needs the lender's documented explanation. A permitted nonoccupying cosigner's qualifying income also counts.

Source: 2026 TBA guide, pages 18-19; checked October 28, 2026. USDA and Bond use different limits or income rules. This table must not be used for those options.

Example: $160,000 of qualifying income is below the Orange County limit shown here but above the Volusia County limit. The same income can pass one county's screen and fail another's.

Official statewide income and loan tables

What does “80% of AMI” mean?

AMI means area median income, a local income benchmark. A separate test at or below 80% of that benchmark can affect mortgage-insurance treatment on the conventional HFA loan.

It is not the same as the Hometown Heroes maximum income limit. Being above 80% AMI does not automatically make you ineligible for HTH, and it does not change the 5% assistance formula.

Usually, yes, but first-time does not necessarily mean you have never owned a home. The usual test is whether you owned an interest in a home you used as your primary residence during the past three years.

Someone who sold their primary home more than three years ago may meet that test. Ownership of another type of property needs review; it is not enough to ask only whether a person's name appeared on a mortgage.

What if my spouse owned a home and I never did?

If you are both occupying borrowers, both histories normally need to meet the rule or an applicable exception.

For TBA, a spouse who is not borrowing is generally outside this particular first-time-buyer test. But the lender must still establish whether you had an ownership interest in the prior home. Being absent from the old loan does not prove that you had no ownership interest.

Bond treats a nonborrowing spouse differently. Do not move a spouse off the application and assume that solves eligibility.

What exceptions exist?

The TBA guide includes exceptions for qualifying veterans, active-duty/Reserve/National Guard applicants, and purchases in designated targeted areas, subject to the required documentation. A targeted area is a specific census tract, not an entire county or ZIP code.

Employment and first-time-buyer exceptions are separate. Veterans and reservists generally still need qualifying full-time work at a Florida physical workplace, although their employer need not be in a civilian hero category. Active-duty service members have a different documented route. A qualifying surviving spouse has a specific TBA/VA exception that needs individual review.

Prior Florida Housing participation is a separate restriction. Waiting three years does not automatically make a past program participant eligible again. Tell the lender about any prior Florida Housing loan, including participation as a cosigner or on the related documents.

TBA first-time-buyer exceptions, page 28

The published TBA baseline is 640 for conventional, FHA and VA. The guide requires 660 for manual underwriting, where an underwriter reviews a file under manual rules instead of relying on an eligible automated approval.

The state guide does not set a separate 680 minimum for conventional. A lender can have additional requirements.

A 640 score does not guarantee a 3%-down conventional approval. The lender also checks debts, income, payment history, property and the underwriting result. It does not average a couple's scores to make a low score disappear. Mortgage credit scores may differ from scores shown in a consumer app.

Your debt-to-income ratio compares monthly debt payments, including the proposed housing payment, with qualifying monthly income. The guide generally allows up to 50% with the required automated result; manual and manufactured-home cases have lower limits. Those are ceilings, not a promise that a borrower at the ceiling qualifies.

Credit and debt-ratio rules, page 25

For TBA, there is not one statewide purchase-price number that answers this for everyone. You need to fit the county loan limit, the selected loan's rules and a payment you can qualify for.

The 2026 guide lists the following limits for the Central Florida counties in this page's table, including Pasco:

These are loan limits, not assistance amounts or affordability promises. For FHA, the county limit is checked against the base mortgage before financed upfront mortgage insurance. The assistance calculation uses the total mortgage, including that financed premium. Those are two different calculations. A VA limit in this program is not a claim that all VA loans outside HTH have the same cap.

A larger down payment can reduce the mortgage on a higher-priced home. It does not remove the income limit or other rules. The assistance itself still stops at $35,000.

Can I use it if I have savings or want to put 20% down?

Having savings does not automatically disqualify you. The program does not require you to empty your accounts first.

The formula still uses the actual mortgage. For example, a $400,000 home with $80,000 total down would leave a $320,000 main mortgage; 5% is $16,000. That is an arithmetic illustration, not confirmation that every lender accepts that structure. The lender must confirm availability, eligible use and the full loan requirements.

The home must be your main home. The guide generally requires intent to occupy it within 60 days of closing.

Adequate homeowners insurance; and flood coverage when required; still matters. Assistance does not pay away property eligibility issues or an appraisal gap.

For a condo with unusual project issues, see our separate non-warrantable condo guide. Financing discussed there does not establish HTH eligibility.

The assistance is not forgiven after five years, ten years or any other waiting period. Its 30-year term is a repayment deadline, not a forgiveness schedule.

The assistance has 0% interest (0% APR) and no prepayment penalty. If you receive $19,400 and make no repayments, the assistance principal remains $19,400. It does not shrink merely because you make payments on the main mortgage.

Can I refinance and leave Hometown Heroes in place?

The published program FAQ says no subordination for either a cash-out or a rate-reduction refinance.

“Subordination” would let the assistance stay behind a replacement main mortgage. Since the published HTH policy does not allow that, plan for the assistance payoff when evaluating a refinance.

You might be able to include the payoff in a new loan if that loan's rules and your equity allow it. That is not guaranteed. If you expect to refinance soon, compare the entire payoff and cost before choosing HTH.

What if I move out and rent the home?

Do not assume you can keep the assistance outstanding after turning the entire home into a rental. Losing primary occupancy is a repayment trigger. Check the documents and lender/servicer requirements before changing use or ownership.

Official repayment terms, page 35 · Official FAQ, including refinancing

A good fit may be someone who can afford the payment but needs help with the upfront costs. Someone who already has enough cash or expects to refinance soon should carefully compare the costs and restrictions with a loan without assistance.

A Florida tax saving worth knowing about

The program exempts the first and second mortgage notes and mortgages from Florida documentary stamp and nonrecurring intangible taxes. It does not exempt the deed.

On a $388,000 first mortgage, the ordinary mortgage taxes would be $1,358 in documentary stamps plus $776 in intangible tax: $2,134 total. This illustrates those two mortgage taxes only. It does not mean every buyer saves exactly that amount on the complete transaction.

Our rough 3% closing-cost estimate is not an itemized quote. Do not subtract this tax example from it again and treat the result as your cash to close. Have the lender prepare the actual program costs.

Florida documentary stamp tax · Florida nonrecurring intangible tax · Program tax exemption, TBA guide page 35

These are two versions of Hometown Heroes. You do not need to understand how the mortgages are financed behind the scenes. You do need to know which rules the lender is using.

“Recapture tax” is a possible federal tax connected to certain Bond-financed sales. It is separate from repaying the assistance. A nine-year tax rule is not a promise that the assistance disappears after nine years.

This page's calculator uses TBA, not Bond or USDA income rules. The state lists options; each lender determines what it offers through its channel.

Official TBA/Bond comparison · Current Bond guide

Florida funds the program through state allocations. Florida Housing administers it, working with participating lenders and the program administrator. Repaid assistance can support future buyers.

Available funding is limited. Money may become available after a new allocation, when another buyer's reservation is canceled, or as funds are recycled under program rules. That is why an older “out of funds” story can exist alongside a newer announcement that funds are available.

Check the official funding and program page for the latest notice. A notice that money is available does not mean it has been reserved for you.

You do not reserve assistance by using this calculator. Your participating lender handles the reservation after the required steps, including a fully signed purchase contract. Closing and loan-delivery deadlines apply.

1. Check the basics. Employer, full-time status, ownership history, previous Florida Housing use and property county.
2. Review the mortgage. Compare the available loan options, actual payments, cash needed and assistance payoff obligations.
3. Complete approved homebuyer education. Ask which course is accepted before paying for one. Complete it before reservation as directed by the program.
4. Find an eligible home and sign a purchase contract. Confirm property requirements and seller credits before relying on them.
5. Have the lender reserve funds and finish underwriting. A preapproval is not the same as a reservation or final approval.
6. Review both loans before closing. Confirm the main mortgage, assistance balance, cash needed and repayment triggers.

Is there a fee to apply for Hometown Heroes?

Florida Housing says there is no application fee for Hometown Heroes. Be cautious about anyone demanding an upfront fee just to get you into the program. Verify the offer with Florida Housing.

That does not mean every mortgage cost is free. An appraisal, credit report, title work, insurance and other legitimate transaction costs may still apply. Ask for an itemized estimate.

Florida Housing's application-fee notice

How long does it take?

Your lender must plan for more than closing day. The program normally gives 60 days from reservation for the loan to close and be purchased by its servicer. The underwriter certification deadline, limited extension and delivery rules still apply. Ask the lender when your file is ready to reserve funds.

Have these ready

The lender decides the complete checklist for the file. One occupying borrower generally completes the approved course. Some military borrowers using government loans have an exception; conventional HFA borrowers still need education. Certificates are generally accepted for two years under the guide.

Official homebuyer education provider list · Freddie Mac's homebuyer education

Tell Mortgage Expert where you want to buy, the price range, who will be on the loan and where you work. We can review which program path may fit, compare the cash needed, and explain what the assistance would mean when you sell or refinance.

Call Shahram Sondi at 407-906-6414.

You do not need to know every mortgage term before the conversation. The goal is to understand three numbers: your main mortgage, your assistance loan and any money you still need.

Program information checked October 28, 2026. Rules, limits, lender offerings and funding can change. Sources are provided so you can check the details behind the plain-English explanations.

• Florida Housing: Hometown Heroes overview
• Current program materials and funding notices
• TBA lender guide, September 17, 2026
• Program FAQ, July 27, 2026
• Employer reference, August 19, 2026
• Freddie Mac HFA Advantage
• HUD FHA handbook and updates
• VA funding fees and closing costs