How Florida's HFA PLUS Program Gives You Free Money After 5 Years

If you've been told you need 20% down to buy a home, you've been given outdated information. Florida's HFA PLUS program can hand you thousands of dollars toward your down payment or closing costs — and after five years, you never pay it back.

This is not a loan you'll be chasing for decades. It's a second mortgage with a zero interest rate and a built-in forgiveness clock that runs from the day you close.

What Is the HFA PLUS Program and How Does It Work?

HFA PLUS is a second mortgage offered through the Florida Housing Finance Corporation (Florida Housing). It works alongside an approved first mortgage — FHA, VA, USDA, or conventional — and gives you 3%, 4%, or 5% of your loan amount to use for your down payment, closing costs, or both.

The key feature: it's deferred at 0% interest and fully forgiven after 5 years of owner-occupancy. Stay in your home, keep making your first mortgage payments, and the balance quietly disappears.

There is no monthly payment on the HFA PLUS second mortgage. You don't see it on your monthly bill. It just sits there, counting down, and then it's gone.

How Much Money Can You Actually Get?

On a $280,000 home with a $270,000 FHA loan, here's what the HFA PLUS amounts look like:

| HFA PLUS Amount | Dollar Value | |----------------|--------------| | 3% option | $8,100 | | 4% option | $10,800 | | 5% option | $13,500 |

For most first-time buyers in Tampa Bay, the 5% option alone covers the FHA minimum down payment of 3.5% *and* a significant portion of closing costs — sometimes completely.

If you pair HFA PLUS with the Florida Hometown Heroes program, you may be looking at $0 out of pocket on closing day.

Who Qualifies for HFA PLUS in Florida?

To use HFA PLUS in 2026, you need to meet these baseline requirements:

• First-time home buyer (or not owned a primary residence in the last 3 years)
• Minimum credit score of 640 for most loan types (620 for some conventional options)
• Income within county limits — for Hillsborough and Pinellas counties, generally $100,000–$135,000 depending on household size
• Purchase price within program limits — typically up to $450,000–$500,000 in the Tampa Bay area
• Use an approved Florida Housing lender — not every lender in Tampa Bay participates
• Complete a homebuyer education course — an easy online requirement, usually done in one sitting

• FHA loan
• VA loan
• USDA loan
• Conventional loan through Fannie Mae or Freddie Mac (HFA Preferred or HFA Advantage)

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Ready to see if you qualify? Check your eligibility in minutes at firsttimehomebuyertb.com/eligibility or call Barrett Henry, REALTOR® directly at (813) 733-7907. With 23+ years of real estate experience, Barrett has helped hundreds of first-time buyers use Florida Housing programs to close with less money out of pocket.

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What Happens If You Sell or Refinance Before 5 Years?

This is the part buyers need to understand clearly. HFA PLUS is not an outright gift from day one — it becomes a gift over time.

If you sell or refinance before the 5-year mark, you will be required to repay a prorated portion of the second mortgage. The closer to 5 years you are, the less you owe back.

Here's a simplified illustration:

• Sell at 1 year: repay roughly 80% of the original amount
• Sell at 2.5 years: repay roughly 50%
• Sell at 4 years: repay roughly 20%
• Sell at 5+ years: repay nothing

For most buyers, this is no problem. The plan is to stay — and five years isn't a long runway. If you need to move before then, any equity you've built typically more than covers what's owed on the HFA PLUS balance.

How Does HFA PLUS Compare to Other Florida Down Payment Programs?

Florida Housing offers a few different second-mortgage products. Here's how HFA PLUS stacks up against the other main options:

HFA PLUS — 3–5% of loan, 0% interest, forgivable after 5 years. Best for buyers who want a clean exit with no long-term debt.

Hometown Heroes — Up to $35,000 for qualifying professions (teachers, nurses, law enforcement, first responders, military, etc.), 0% interest, deferred until sale or refinance. Best for eligible professionals who want maximum assistance. Learn more at our Hometown Heroes page.

Florida Assist — Up to $10,000, 0% interest, deferred (not forgivable). Must be repaid at sale or refinance. Best for buyers who may sell within a few years and want simpler qualification.

Chenoa Fund — No income limits, nationwide program, 3.5% assistance. Works differently from Florida Housing. Good alternative if you exceed HFA income caps.

If you qualify for Hometown Heroes, that program typically provides more dollars. But not everyone qualifies — and HFA PLUS is available to a broader pool of buyers.

Can You Stack HFA PLUS With Hometown Heroes?

Generally, no — Florida Housing programs are structured so that you use one second-mortgage product at a time. You wouldn't layer HFA PLUS on top of Hometown Heroes.

However, you *can* stack your Florida Housing second mortgage (whether that's HFA PLUS, Hometown Heroes, or Florida Assist) with:

• FHA loans that allow gift funds and DPA
• Seller concessions for closing costs
• Lender credits
• County SHIP funds (Hillsborough and Pinellas each run their own programs)

The combination of a Florida Housing second mortgage plus seller-paid closing costs is extremely common in 2026's buyer-friendly Tampa Bay market. Sellers are more willing to contribute than they were 3 years ago.

How to Apply for HFA PLUS

You cannot apply for HFA PLUS directly through Florida Housing's website. The process works through an approved participating lender.

Here's how it actually goes:

1. Get pre-approved through a Florida Housing-approved lender who offers HFA PLUS. Barrett Henry, REALTOR® can connect you with the right lenders. 2. Complete a homebuyer education course — HUD-approved, typically online, takes 3–6 hours. 3. Your lender submits the loan package to Florida Housing for reservation of funds. 4. Close on your home — the HFA PLUS funds are disbursed at closing through the title company. 5. Move in and start your 5-year clock.

The biggest mistake buyers make is working with a lender who isn't approved for Florida Housing programs. Not every bank or mortgage company participates. This is why who you work with matters.

What Tampa Bay First-Time Buyers Are Actually Paying at Closing

Let's put this into a real scenario. A first-time buyer in Riverview, FL purchases a $295,000 home using an FHA loan at 6.5% and HFA PLUS at 5%.

• Loan amount: $284,671 (after 3.5% FHA down payment)
• HFA PLUS (5%): $14,234
• FHA down payment required: $10,329
• Typical closing costs: $7,000–$9,000
• Seller concession negotiated: $7,500

Result: The buyer brings roughly $2,000–$3,000 to the closing table — not $10,000–$20,000.

And if they stay in that home for 5 years, the $14,234 HFA PLUS balance disappears entirely. They've effectively received it as a grant.

Is HFA PLUS Right for You?

• You're ready to commit to a home for at least 5 years
• You're buying in the $200,000–$450,000 range
• Your income is under the county caps
• You want minimal paperwork and a program with a clear forgiveness timeline

It may not be the best fit if you're eligible for Hometown Heroes (which offers more money), if your income exceeds HFA limits, or if you're planning to move within 2–3 years.

The best way to know? Start with an eligibility check.

Visit firsttimehomebuyertb.com/eligibility to see which Florida Housing programs you qualify for — it takes about 90 seconds and costs nothing. Or reach out directly to Barrett Henry, REALTOR® at (813) 733-7907. With 23+ years of real estate experience, Barrett will walk you through every program available for your income, household size, and target neighborhood — so you close with as little out of pocket as possible.