Hey there! Navigating the world of homebuying can be a bit overwhelming, especially when you’re trying to figure out how to cover that hefty down payment. But don’t worry—Florida has a fantastic program that might be just what you need: the FL PLUS Mortgage Program. Let’s break it down together.

What is the FL PLUS Mortgage Program?

The FL PLUS Mortgage Program is designed to assist first-time homebuyers in Florida by providing down payment and closing cost assistance through a forgivable second mortgage. This program is offered by the Florida Housing Finance Corporation (FHFC) and is available statewide.

Funding Source

This program is funded by the Florida Housing Finance Corporation, a state agency dedicated to helping Floridians obtain safe and affordable housing.

Eligibility Criteria

• First-Time Homebuyer Status: You must not have owned and occupied your primary residence in the last three years.
• Credit Score: A minimum credit score of 640 is required.
• Income and Purchase Price Limits: Your income and the purchase price of the home must be below county-specific limits.
• Homebuyer Education: Completion of an approved homebuyer education course is mandatory.
• Primary Residence: The property must be your primary residence.

Benefits of the Program

• The program offers a forgivable second mortgage equal to 3%, 4%, or 5% of your total loan amount.
• This assistance is interest-free, requires no monthly payments, and is forgiven at a rate of 20% per year over five years.
• If you stay in the home for five years, the loan is completely forgiven.

Potential Drawbacks

• Occupancy Requirement: If you sell, refinance, or move out before the five-year forgiveness period ends, you may have to repay the remaining balance of the second mortgage.
• Income and Purchase Price Limits: The program has specific income and purchase price limits, which may restrict eligibility for some buyers.

Application Process

1. Contact a Participating Lender: Reach out to an FHFC-approved lender to discuss your eligibility and start the application process.
2. Complete Homebuyer Education: Enroll in and complete an approved homebuyer education course.
3. Loan Application: Work with your lender to apply for a first mortgage through the FHFC, along with the FL PLUS down payment assistance.
4. Loan Approval and Closing: Upon approval, proceed with the closing process to finalize your home purchase.

Program Availability

The FL PLUS Mortgage Program is available statewide across Florida.

Pros and Cons

Pros:

• Forgivable Assistance: The down payment assistance is forgivable over five years, reducing your financial burden if you remain in the home.
• No Monthly Payments on Second Mortgage: The assistance comes as a second mortgage with 0% interest and no monthly payments.

Cons:

• Repayment Requirement: If you sell, refinance, or move out before the five-year period ends, you may need to repay the remaining balance.
• Eligibility Restrictions: Income and purchase price limits may make some buyers ineligible.

Grant or Down Payment Assistance?

This program provides down payment assistance in the form of a forgivable second mortgage.

Program Availability Date

The FL PLUS Mortgage Program has been available since at least 2024, with ongoing updates to its terms and conditions.

Note: The information provided is based on the latest available data as of March 10, 2025. Program terms and availability may change, so it’s advisable to consult with an approved lender or visit the official FHFC website for the most current details.

Category:

Florida First Time Homebuyer Program