First-Time Home Buyer Programs & Grants In Tampa

If you are in the market for your first home, congratulations! Buying a house is exciting and (at the same time) a bit stressful. This is particularly true if you are concerned about how you will afford to pay the down payment and closing costs for your new house.

These expenses are often an obstacle for many Floridians who would otherwise love to purchase a home of their own. Fortunately, the state of Florida, Hillsborough County, and the City of Tampa all offer grants and programs to help first-time home buyers. If you are looking to purchase a house in Tampa, these options can help make it possible.

At Eaton Realty, we work with buyers across a range of budgets. Our goal is to get each of our clients into the perfect home for them while staying within their budget. To make this happen, we help prospective buyers explore programs that will allow them to make homeownership a reality. To learn more or to talk to our Tampa real estate agents, reach out today.

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Grants and Programs for First-Time Home Buyers in Tampa, Florida

According to Florida Realtors, first-time home buyers accounted for 20% of all home purchasers in Florida. While this number is lower than the national average of 32%, it is still a substantial number of people buying a house for the very first time. If you fall into this category, there are fortunately multiple financial programs to help you take this leap.

One of the challenges for many people when purchasing a home is finding the money for a down payment. Typically, banks like to see buyers put 20% of the purchase price down for a home. If you are buying a house for $400,000, for example, then a 20% down payment would be $80,000.

It is possible to have a smaller down payment by purchasing private mortgage insurance (PMI) or taking advantage of a special government program. Multiple programs and grants are also available to first-time home buyers in Tampa that can help make the dream of homeownership a reality.

Below, we outline some of the grants and programs available to first-time homebuyers in Tampa. Of course, each person’s situation is unique, and you may qualify for other programs (such as a VA loan) that can make homeownership affordable. For information specific to your situation, we encourage you to talk to your bank about loan programs.

As you're reviewing programs, keep in mind that the program offering the most assistance is not automatically the best financial choice. We always recommend comparing the interest rate and monthly payment on the first mortgage, whether the assistance must be repaid, and what happens if you sell or refinance. A smaller assistance package paired with better loan terms can sometimes cost less over the years you expect to own the home.

Federal First-Time Home Buyer Programs

FHA Loan

The Federal Housing Administration (FHA) loan is one of the most popular programs for first-time buyers. It allows borrowers to purchase a home with a down payment as low as 3.5% and offers more lenient credit requirements compared to conventional loans.

To qualify for an FHA loan, buyers typically need:

• A minimum credit score of 580 (or 500 with a 10% down payment)
• Stable income and employment history
• A debt-to-income ratio within FHA limits
• The property must meet FHA appraisal and safety standards and be the buyer’s primary residence

FHA loans are insured by the federal government, giving lenders the confidence to offer loans to buyers who might not qualify for a traditional mortgage.

FHA financing can expand a buyer’s options, but the condition of the property matters. Homes with significant safety, structural, roofing, or maintenance issues may have difficulty meeting FHA appraisal requirements. We recommend that FHA buyers consider financing compatibility before investing too much time or emotion in a particular property.

VA Loan

The U.S. Department of Veterans Affairs (VA) guarantees VA loans for eligible veterans, active-duty service members, National Guard members, reservists, and surviving spouses. These loans are designed to reward military service by eliminating many of the traditional barriers to homeownership.

To qualify, applicants must obtain a Certificate of Eligibility (COE) from the VA and use the property as their primary residence. The VA loan remains one of the most powerful tools available to military families looking to buy a home in Tampa.

A zero-down VA loan does not necessarily mean buying a home with no cash available. Buyers may still need funds for inspections, appraisal-related expenses, moving costs, and reserves after closing. We encourage VA buyers to preserve some savings instead of treating their entire available balance as part of the purchase budget.

USDA Loan

The U.S. Department of Agriculture (USDA) offers a Rural Development Loan Program for low- to moderate-income buyers purchasing homes in designated rural or suburban areas. While most of Tampa itself may not qualify, nearby communities in Hillsborough County and surrounding areas often do.

To qualify, buyers must meet income limits based on household size and purchase a home in an eligible rural area. This can be a great option for those open to living just outside the Tampa metro area while still enjoying close proximity to the city.

USDA eligibility is tied to the property address, not simply whether a community feels rural. Two homes located relatively close together may receive different eligibility determinations. Buyers interested in this option should check individual addresses before assuming every home in a particular Tampa suburb will qualify.

Fannie Mae HomeReady®

The HomeReady® Mortgage from Fannie Mae is tailored for first-time and moderate-income buyers. It offers down payments as low as 3%, allows flexible sources of income (such as rental or household income), and provides reduced private mortgage insurance (PMI) costs.

To qualify, borrowers must:

• Have a minimum credit score of 620
• Complete an online homebuyer education course
• Meet income limits based on the property’s location

HomeReady® loans are ideal for buyers who may not have a large down payment but have steady income and want a low-cost path to homeownership.

Freddie Mac Home Possible®

Similar to HomeReady®, Freddie Mac’s Home Possible® program helps low- to moderate-income buyers purchase a home with as little as 3% down. The program offers lower mortgage insurance premiums, flexible co-borrower options, and the ability to use gift funds for the down payment or closing costs.

Key qualifications include:

• A minimum credit score of 620
• Income limits (typically up to 80% of the area median income)
• The property must be the buyer’s primary residence

Home Possible® is particularly helpful for buyers who are working with family or friends to combine income and resources to purchase their first home.

Florida First-Time Home Buyer Programs

The Homebuyer Program

The Florida Housing Finance Corporation offers a Homebuyer Program for Florida residents. This program offers a 30-year fixed-rate mortgage to help first-time homebuyers purchase a home.

To qualify, a prospective buyer must have a minimum credit score of 640 and complete a homebuyer education course. There are also specific income limits and purchase price limits based on the county where you purchase a house.

Florida Hometown Heroes Program

The Florida Hometown Heroes Housing (HTH) Program offers down payment and closing cost assistance of $10,000 to $35,000 (up to 5% of the total first mortgage loan) for eligible employees in Florida. Under this program, health care workers, school staff members, first responders, public safety or court employees, child care workers, veterans, and servicemembers can take advantage of the loan. The HTH loan has a 0% interest rate and is deferred, but is not forgivable.

The Florida Assist

The Florida Assist, or FL Assist, is a down payment assistance program. It offers up to $10,000 in down payment and closing cost assistance on FHA, VA, USDA, and conventional loans. This loan has a 0% interest rate and is deferred. While the loan is not forgivable, payment will be deferred until the homeowner’s first mortgage is satisfied or refinanced or when the owner no longer lives at the home.

The Florida Homeownership Loan Program

The Florida Homeownership Loan Program (FL HLP) is a second mortgage that can be used to borrow up to $12,500 towards a down payment and/or closing costs. This loan has a fixed interest rate of 3%, with a 30-year term. Unlike some other down payment assistance loans, the FL HLP does require a monthly payment. When the first mortgage is satisfied or refinanced, or if the house is no longer the owner’s primary residence, then this mortgage will become due and payable in full.

Florida HFA Advantage PLUS

The Florida Housing Finance Corporation also offers a forgivable second mortgage for HFA Preferred or Advantage PLUS loans. These loans are available in amounts ranging from 3% to 5% of the total loan amount. This second mortgage will be forgiven at a rate of 20% over its 5-year term.

Hillsborough County First-Time Home Buyer Programs

Home Sweet Home Hillsborough Program

The Home Sweet Home Hillsborough Program offers first-time homebuyers in Hillsborough County up to $15,000 in down payment and/or closing cost assistance ($5,000 within the City of Tampa). This money comes in the form of a 30-year second mortgage, with zero interest. The loan payments are deferred until the first mortgage is refinanced, sold, foreclosed, or the house no longer serves as the borrower’s primary address.

To qualify, potential homebuyers must complete a homebuyer education course, have a credit score of at least 640, and meet certain income standards. All homes purchased with funds from this program must be the owner’s primary residence. The maximum purchase price for a home is $450,000.

Tampa First-Time Home Buyer Programs

Dare to Own the Dream Program

In Tampa, the Dare to Own the Dream Program (DARE) offers up to $50,000 to eligible first-time home buyers to help them achieve their dream of homeownership. The money comes in the form of a down payment assistance loan, with a 0% interest rate and $0 monthly payment. As long as the house is owner-occupied as the homeowner’s primary residence, this Deferred Payment Loan (DPL) is “silent.” The loan is fully forgivable after 20 years.

To qualify, the potential buyer must meet income limits based on the Area Median Income (AMI) for household income. It requires a minimum $2,000 investment from the buyer to purchase a home valued at up to $450,000 within the City of Tampa. There are other requirements for the program, including attending education through a Housing Counseling agency and submitting an application.

We recommend that buyers interested in DARE begin the process before finding a home. Education, counseling, lender approval, document collection, and funding availability can all affect timing. Waiting until a property is under contract may leave too little time to satisfy every program requirement.

What First-Time Buyers Should Compare Before Accepting Assistance

Down payment assistance can reduce the amount of money you need at closing, but programs differ considerably in how they work. Some provide forgivable assistance, while others place a second mortgage on the property that must eventually be repaid. We recommend comparing more than the headline assistance amount as you’re reviewing assistance programs. Ask the lender or housing counselor:

• Is the assistance a grant, forgivable loan, deferred loan, or monthly-payment second mortgage?
• Will the balance become due if you sell, refinance, rent out the home, or move?
• Does using the program affect the first mortgage’s interest rate or fees?
• Are there restrictions on the home’s price, location, type, or condition?
• How long does approval take, and is funding currently available?
• Can the assistance be combined with seller concessions or another program?

These details can determine both how helpful a program is at closing and how it affects the homeowner years later.

Our Perspective: Homeownership May Be More Within Reach Than Many First-Time Homebuyers Think

As Tampa Realtors, we often get calls from prospective clients who want to buy their first home, but are worried about their ability to afford it. Let’s face it: buying a house is expensive! In addition to saving up for a down payment, you also have to budget for closing costs, moving expenses, and other costs (like buying new furniture).

In our experience, buying your first home is often more possible than many people realize. There are many houses in and around Tampa that are listed for $300,000 or less. Perhaps more importantly, there are numerous programs that are designed to help first-time home buyers with a down payment, closing costs, and more.

We have helped clients of all ages explore programs that may be a fit based on their circumstances. For example, when we work with veterans or active-duty military, we might point them toward the different loans and programs available from the Department of Veterans’ Affairs (VA). When we work with clients who have a lower income, we advise them to look into programs like the Dare to Own the Dream Program.

We also have a lot of experience helping prospective buyers find homes that fit their budget. Our team will work with you to understand your wants, needs, and finances so that we can help you find the right home in the right neighborhood. What we commonly see is that clients can find an absolutely fantastic home in Tampa or a Tampa suburb that is within their budget (with or without a program or grant).

We believe that owning a house can be a great step towards financial stability. Our team has seen firsthand how these first-time home buyer programs can be the bridge to homeownership that many of our clients need.

If you are thinking about buying your first home but are uncertain about whether you can afford it, we encourage you to give us a call. You might be surprised at the number of options available for helping you buy a house.

Purchase Your First Home with Eaton Realty

Tampa is an absolutely wonderful place to live, filled with charming neighborhoods, history, great restaurants and shopping, and more. If you want to make the leap to home ownership in Tampa, there are a number of grants and programs that can help you make it possible. We can talk you through some options and point you towards resources that can help you find funding that will allow you to purchase your first home.

At Eaton Realty, we are proud to help Floridians buy and sell fantastic houses, whether they are a first-time home buyer or an experienced property investor. We work tirelessly to help our clients find the right home that is within their budget, and to help them explore financing options to make their dreams of home ownership a reality. If you’d like to learn more about buying a house in Tampa as a first-time home buyer, give us a call at 813-672-8022 or fill out our online contact form.

Frequently Asked Questions about Tampa First-Time Home Buyer Grants and Programs

Do I Have to Put Any of My Own Money Towards the Purchase If I Receive Down Payment Assistance?

You do not necessarily have to put money towards the home purchase. However, many assistance programs require the buyer to contribute some amount toward the purchase. For example, the Dare to Own the Dream program requires a minimum $2,000 investment from the buyer. The exact amount you need to contribute depends on the program, mortgage type, purchase price, and lender requirements.

Can I Combine a First-Time Home Buyer Grant with an FHA, VA, or Conventional Mortgage?

In many cases, you can combine grants with a mortgage. Several assistance programs are specifically designed to work with particular mortgage products. For example, Florida Assist can be used with FHA, VA, USDA, and conventional loans. However, program requirements and lender participation can vary, so buyers should discuss available combinations with an approved lender before choosing a mortgage.

What Happens to Down Payment Assistance If I Sell My Tampa Home?

It depends on the type of assistance and how it was provided. Some programs use forgivable loans, while others provide deferred-payment loans or second mortgages that become due when certain events occur, such as selling or refinancing the home. Before accepting assistance, buyers should understand when repayment may be required and whether there are occupancy requirements.

Can I Qualify for First-Time Home Buyer Assistance If I Have Owned a Home Before?

Possibly. First-time homebuyer programs have specific definitions of who qualifies as a first-time buyer, and requirements can differ between programs. Other factors, including income, credit score, the property being purchased, and whether the home will be your primary residence, may also affect eligibility. A lender or housing counseling agency can help determine which programs may be available to you.

Should I Find a Tampa Home Before Looking into First-Time Home Buyer Programs?

It is generally better to figure out your financing and assistance options before beginning your home search. Some programs have income limits, purchase price limits, approved lender requirements, education requirements, or property and/or location restrictions. Knowing what you qualify for ahead of time can help you establish a realistic budget and avoid looking at homes that do not meet program requirements.

Resources:

• https://www.floridarealtors.org/tools-research/reports/florida-home-buyers-sellers-profile
• https://www.hud.gov/fha
• https://www.benefits.va.gov/homeloans/
• https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program
• https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/homeready-mortgage
• https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/home-possible
• https://www.floridahousing.org/programs/homebuyer-overview-page
• https://www.floridahousing.org/live-local-act/hometown-heroes-program
• https://www.fha.com/grants/florida-home-sweet-home-hillsborough-program
• https://www.tampa.gov/housing-and-community-development/programs/mortgage-assistance