HFA Preferred Plus: Forgivable Down Payment Help That Becomes Free Money

Most down payment programs are loans you eventually repay. HFA Preferred Plus is different — it forgives completely if you stay in your home for five years. That makes it one of the closest things to a true grant available to Florida first-time buyers.

How much assistance can you get?

You select one of three tiers based on your needs:

• 3% of loan amount — Example: $350,000 loan = $10,500
• 4% of loan amount — Example: $350,000 loan = $14,000
• 5% of loan amount — Example: $350,000 loan = $17,500

Higher percentages may come with a slightly higher interest rate on your first mortgage. Your lender will show you the rate/assistance tradeoff so you can pick the best fit.

The forgiveness math

The balance forgives at 20% per year, starting on Day 1:

• Year 1: 20% forgiven → 80% remaining
• Year 2: 40% forgiven → 60% remaining
• Year 3: 60% forgiven → 40% remaining
• Year 4: 80% forgiven → 20% remaining
• Year 5: 100% forgiven → $0 owed

If you sell or refinance in Year 3 with a $14,000 original assistance amount, you would repay 40% — just $5,600. Most Tampa Bay buyers who plan to stay 5+ years walk away with the full benefit.

2026 eligibility requirements

• First-time buyer: No homeownership in the past 3 years
• Credit score: 640 minimum
• Income/purchase price: Within Florida Housing Finance Corporation (FHFC) limits
• First mortgage: Must be a FL Housing conventional loan through a participating lender
• Property: Primary residence — single-family, townhome, or condo
• Homebuyer education: HUD-approved course required

Figures are 2026 estimates — your lender confirms current limits and funding availability.

HFA Preferred Plus vs. Hometown Heroes

Both programs are excellent, but they serve different situations:

• Choose HFA Preferred Plus if you plan to stay 5+ years and want the money forgiven entirely.
• Choose Hometown Heroes if you need the maximum dollar amount (up to $35K) or may sell/refinance before 5 years.

Why this program is underused

Many buyers — and even some agents — do not realize HFA Preferred Plus exists because it must be paired with a Florida Housing first mortgage through specific participating lenders. If your lender is not on the approved list, the program will never come up. Barrett Henry, REALTOR® works with lenders who are already approved, so qualifying buyers do not miss this opportunity.

Related programs to explore

• Hometown Heroes — up to $35K deferred, 0% interest
• FL Assist — $10K deferred second mortgage
• County SHIP — local funds, potentially layerable
• National DPA — no income cap options