How does HFA Preferred Plus help first-time buyers?
HFA Preferred Plus provides 3%, 4%, or 5% of your first mortgage as a forgivable second mortgage. It carries 0% interest and no monthly payment. The balance forgives at 20% per year, after 5 years in your first home, you owe nothing. On a $350,000 loan at 4%, that is $14,000 you get to keep.
Most down payment programs are loans you eventually repay. HFA Preferred Plus is different, if you stay in your first home for five years, the money is yours to keep. For a first-time buyer planning to settle in, this is as close to a grant as Florida offers.
What does this mean for your first home purchase?
Here is the real math. On a $350,000 first mortgage with 4% assistance:
- Assistance amount: $14,000
- Monthly payment on assistance: $0
- After Year 1: $11,200 remaining (20% forgiven)
- After Year 3: $5,600 remaining (60% forgiven)
- After Year 5: $0 remaining, you keep it all
If you are a first-time buyer planning to stay in your home for 5+ years, which most first-time buyers do, this program effectively gives you free money toward your purchase.
How to pair it with your first mortgage
HFA Preferred Plus requires a Florida Housing conventional first mortgage through a participating lender. You choose your assistance tier:
- 3% tier: Lower assistance, lowest impact on your first mortgage rate
- 4% tier: Middle ground, most popular choice
- 5% tier: Maximum assistance, slightly higher first mortgage rate
Your lender shows you exactly how each tier affects your monthly payment so you can pick the best fit for your budget. The rate difference is typically a fraction of a percent.
Why most first-time buyers never hear about this program
HFA Preferred Plus must be paired with a Florida Housing first mortgage through specific participating lenders. If your lender is not on the approved list, this program will never come up in conversation. Barrett Henry, REALTOR® works with lenders who are already approved, so qualifying first-time buyers do not miss this opportunity.
HFA Preferred Plus vs. Hometown Heroes for first-time buyers
- Staying 5+ years? HFA Preferred Plus is likely better, the money becomes free.
- Need the max dollar amount? Hometown Heroes goes up to $35K vs. 5% here.
- Might sell or refi soon? Hometown Heroes has no forgiveness timeline pressure.
Could your down payment be free in 5 years?
Find out if you qualify for forgivable assistance, 2-minute check, no credit pull.
Check My EligibilityOr call Barrett directly: (813) 733-7907
For the complete program guide with income limits, eligibility details, and the full application process, see the detailed HFA Preferred Plus guide at tampabaydownpayment.com.
Other programs to explore for your first home
- Hometown Heroes, up to $35K deferred, 0% interest
- FL Assist, $10K deferred second mortgage
- County SHIP, local funds that stack on top
- National DPA, backup if state funding runs out
Related Programs to Compare
Hometown Heroes
$10K to $35K deferred, 0% interest, no monthly payment
View program →FHA Loan
3.5% down, fully covered by stacking DPA
View program →VA Loan
$0 down, no PMI, no income limit
View program →USDA Zero-Down
100% financing in eligible suburban areas
View program →Side-by-Side Comparisons
Related Blog Posts
HFA PLUS Florida: Up to $15,000 Forgiven After 5 Years (2026)
Down Payment AssistancePasco County Down Payment Assistance 2026: Get Up to $65,000
First-Time BuyersNew Port Richey FL First-Time Buyer Guide 2026: Prices & DPA
First-Time BuyersWestchase Tampa First-Time Buyer Guide 2026: Prices & HOA Costs
Helpful Resources
Frequently Asked Questions
Can I use HFA Preferred Plus on my first home?
Yes. HFA Preferred Plus is designed for first-time buyers, you must not have owned a home in the past 3 years. There is no veteran exemption for this specific program.
Do I really get to keep the money after 5 years?
Yes. The assistance forgives at 20% per year. If you stay in your first home for 5 years without selling or refinancing, the entire balance drops to $0. On a $350,000 loan with 4% assistance, that is $14,000 of free money.
What if I sell my first home before 5 years?
You repay whatever has not been forgiven yet. For example, if you sell after 3 years, 60% has been forgiven and you repay 40%. On $14,000 assistance, you would owe $5,600, and your home equity from 3 years of appreciation typically far exceeds that.
Does HFA Preferred Plus affect my monthly payment?
The assistance itself has no monthly payment and 0% interest. Your first mortgage rate may be slightly higher than market rate (a fraction of a percent) depending on which assistance tier you choose. Your lender shows you the exact tradeoff.
Should I pick HFA Preferred Plus or Hometown Heroes for my first home?
If you plan to stay 5+ years, HFA Preferred Plus is likely better, the money becomes free. If you need the maximum dollar amount (up to $35K) or may sell or refinance sooner, Hometown Heroes gives you more upfront. Barrett helps you compare both options side by side.
Forgivable help is waiting for first-time buyers
See if HFA Preferred Plus fits your situation, free eligibility check, no obligation.
Find Out in 2 MinutesOr call Barrett directly: (813) 733-7907