Down payment assistance · Florida
Florida HFA Preferred and Advantage PLUS
The one that goes away. Where the other Florida Housing seconds are repaid at sale, the PLUS programs forgive the assistance in stages, so a buyer who stays five years owes nothing.
What are HFA Preferred and HFA Advantage PLUS?
HFA Preferred PLUS and HFA Advantage PLUS are Florida Housing programs that pair a conventional first mortgage — Fannie Mae HFA Preferred or Freddie Mac HFA Advantage — with a second mortgage of 3, 4 or 5 percent of the first mortgage amount for down payment and closing costs. The second is forgiven at 20 percent per year over five years, and carries no interest and no monthly payment in the meantime.
How forgiveness works
Each year you keep the home as your primary residence, a fifth of the assistance is forgiven. Stay five years and the whole amount is gone. Sell or refinance in year two and you repay the unforgiven remainder — three-fifths — from proceeds.
Why the conventional first mortgage matters
HFA Preferred and HFA Advantage are conventional products with reduced mortgage-insurance coverage requirements for qualifying incomes, which can make the monthly payment lower than FHA for the same house. The assistance amount you choose — 3, 4 or 5 percent — trades against the first mortgage's rate, so the right combination depends on your numbers.
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Straight answers
Frequently asked
Is the HFA PLUS down payment assistance really forgiven?
Yes, in stages. The second mortgage is forgiven at 20 percent for each year you occupy the home as your primary residence, so after five years nothing is owed. If you sell, refinance or move out before then, the portion not yet forgiven is repaid.
Should I take the 3, 4 or 5 percent option?
It depends on the first mortgage rate attached to each. A larger assistance amount typically comes with a higher rate on the first mortgage. For a buyer short on cash the 5 percent is usually right; for one with savings who plans to stay a long time, the 3 percent with a lower rate can cost less overall. We model all three.
Do I have to be a first-time buyer for HFA Preferred PLUS?
Generally yes, or buying in a designated targeted area, or a qualifying veteran — the same eligibility as other Florida Housing first-mortgage programs. Household income must be within the county limit and a homebuyer education course is required.
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