First-Time Home Buyer Grants in Florida

The word "grant" gets thrown around loosely in real estate. Some programs labeled as grants are actually forgivable loans, deferred loans, or repayable second mortgages. Understanding the difference is the first step to maximizing your free money. This guide breaks down every grant-style program available to Florida first-time home buyers in 2026, sorted by how much you actually have to pay back.

What is the difference between a grant, a forgivable loan, and a deferred loan?

Before diving into specific programs, here is what these terms mean in practice:

• Grant: Free money. You receive it, you never pay it back, period. Bank grants from Chase, BofA, and Wells Fargo fall into this category.
• Forgivable loan: Structured as a second mortgage, but the balance is forgiven (erased) after you stay in the home for a set period, typically 3 to 5 years. HFA Preferred PLUS and the Chenoa Fund forgivable option work this way.
• Deferred loan: No monthly payment and often 0% interest, but you must repay the full balance when you sell, refinance, or pay off the first mortgage. Hometown Heroes is a deferred loan.

All three reduce or eliminate your out-of-pocket costs at closing. The practical difference is whether you eventually repay the money and how long you need to stay in the home to keep it free.

Which Florida programs offer truly forgivable assistance?

HFA Preferred PLUS: Forgivable After 5 Years

The HFA Preferred PLUS program, administered by the Florida Housing Finance Corporation, provides 3-5% of your first mortgage amount as a forgivable second mortgage. If you stay in the home for 5 years, the entire balance is forgiven. You owe nothing. The program pairs with a Florida Housing conventional first mortgage at a competitive interest rate.

• Amount: 3-5% of the first mortgage
• Forgiveness: 100% forgiven after 5 years of occupancy
• Credit score: 640 minimum
• Income limit: Varies by county (approximately $120K-$156K in Tampa Bay)
• First-time buyer: Required (no ownership in past 3 years)

Chenoa Fund: Forgivable After 36 Payments

The Chenoa Fund covers the 3.5% FHA down payment as either a repayable or forgivable second mortgage. The forgivable option erases the balance after 36 consecutive on-time first mortgage payments (3 years). The biggest advantage: no income limit. If you earn too much for Hometown Heroes or HFA PLUS, Chenoa Fund is your fallback.

• Amount: 3.5% or 5% of the loan amount
• Forgiveness: After 36 on-time payments (forgivable option)
• Credit score: 600 minimum (620 for forgivable)
• Income limit: None
• First-time buyer: Not required

Bank Grants: Free Money, No Repayment

Several national banks offer direct grants to buyers purchasing in designated communities. These are true grants: no repayment, no lien, no strings beyond buying in an eligible area. According to the Consumer Financial Protection Bureau, bank-sponsored grant programs have helped thousands of first-time buyers nationwide.

• Bank of America:America's Home Grant ($7,500 toward closing costs) + Down Payment Grant (up to $10,000) in select areas. Requires 620+ credit.
• Chase: Chase HomeReady Grant of $5,000 in designated communities. Works with FHA, VA, and conventional loans.
• Wells Fargo: Dream. Plan. Home. closing cost grant of $5,000-$10,000 in eligible areas. Can stack with down payment assistance.

Availability depends on the property location. Barrett checks your target neighborhoods against each bank's eligible area map before you start shopping.

What about county SHIP grants in Florida?

Florida's State Housing Initiatives Partnership (SHIP) program distributes funds to every county in the state. Each county sets its own income limits, award amounts, and application process. In Tampa Bay, county SHIP programs provide between $10,000 and $50,000 in assistance, often structured as deferred loans but some counties offer forgivable options.

• Hillsborough County SHIP: up to $50,000 in assistance
• Pinellas County SHIP: funds vary by cycle
• Pasco County SHIP: up to $25,000
• Polk County SHIP: up to $30,000
• Manatee County SHIP
• Sarasota County SHIP

SHIP funds are stackable. You can layer them on top of Hometown Heroes, HFA PLUS, or the Chenoa Fund. The key is applying early because many counties exhaust their annual allocation within weeks of opening.

Is Hometown Heroes a grant?

No. Hometown Heroes is technically a deferred loan, not a grant. It provides up to 5% of the loan amount (maximum $35,000) at 0% interest with no monthly payment. You repay the full balance when you sell, refinance, or pay off your first mortgage. However, because there are no payments and no interest, many buyers treat it like a grant, especially if they plan to stay in the home long-term.

For truly "free" money, focus on HFA Preferred PLUS (forgiven after 5 years), the Chenoa Fund forgivable option (forgiven after 36 payments), or bank grants that never require repayment.

How to apply for Florida first-time buyer grants

1. Check your eligibility. Use the 2-minute eligibility check to see which programs match your income, credit, and location.
2. Connect with a participating lender. Not every mortgage company can process state-funded programs. Barrett connects you with lenders who specialize in stacking Florida Housing programs.
3. Complete homebuyer education. Most grant programs require a HUD-approved homebuyer education course. Available online, typically 4-6 hours, under $100.
4. Get pre-approved. Your lender verifies your income, credit, and eligibility for each program. This usually takes 5-7 business days.
5. Start house hunting.With Barrett as your buyer's agent, you search with confidence knowing exactly how much assistance you have available.