Florida Housing DPA 2026: Florida Assist & 3-O-1 Loan Rules

This Orlando-area home illustrates the kind of Florida neighborhood many buyers hope to call home.

Saving for a down payment can feel like the biggest hurdle to buying in Florida, especially when you’re also budgeting for closing costs, prepaid taxes, and insurance. Florida Housing offers year-round first-mortgage and down-payment assistance options, while programs such as Hometown Heroes depend on eligibility and available funds. The details matter: assistance may reduce what you need at closing, but it can also create a second mortgage that must eventually be repaid.

I’m Corey Friedrich. I’ll lay out the key Florida Housing options plainly, including what the often-mentioned “3-O-1” label does and does not mean. Before you build a budget around assistance, confirm the current terms with a participating lender.

1. Florida Assist ($10,000 0% Second Lien) vs. 3-O-1 DPA Second Loans

First, a correction that can save you from comparing the wrong loan: Florida Housing’s current menu does not include a product officially named “3-O-1” that provides 3% as a zero-interest deferred second mortgage. People sometimes use the term loosely when talking about 3% assistance alongside a 30-year fixed first mortgage. The lender will price and document the actual program names and terms.

Florida Housing’s options have different repayment structures:

✔ FL Assist: Up to $10,000 as a 0% interest, non-amortizing second mortgage, with repayment deferred for up to 30 years. It has no monthly payment, but it is not forgivable. The balance is generally due if you sell or transfer the property, refinance, pay off the first mortgage, or stop occupying the home as your primary residence.

✔ FL HLP Second Mortgage: Up to $12,500 at 3% interest, fully amortizing over 30 years, with a monthly payment. That payment may count in your debt-to-income ratio. Don’t treat this as a deferred-payment loan just because some balance may become due upon a triggering event.

✔ FL HFA Preferred PLUS or HFA Advantage PLUS: 3%, 4%, or 5% of the first mortgage amount as a 0% interest second mortgage that can be forgiven over five years, generally at 20% per year, if you meet the program’s occupancy conditions. It is paired with eligible conventional HFA Preferred or HFA Advantage first mortgages. If you sell, refinance, or move out before forgiveness is complete, the remaining balance may be due.

Florida Housing assistance is generally paired with a Florida Housing first mortgage; it isn’t standalone cash assistance. You can review the program overview and the current assistance descriptions on Florida Housing’s homebuyer overview page.

For a baseline on how low-down-payment first mortgages work before adding assistance, see my guide to FHA versus conventional 3% down loan structures.

A Florida worker and partner review their homebuying numbers before choosing a loan and assistance structure.

2. Hometown Heroes DPA: Up to $35,000 in Assistance for Eligible Workers

Florida Hometown Heroes offers qualified buyers up to 5% of the total first mortgage amount, with a $10,000 minimum and a $35,000 maximum. The assistance is structured as a 0% interest, non-amortizing second mortgage, deferred for 30 years. It is not forgivable. The balance is generally due if you sell, refinance, transfer the deed, or stop using the home as your primary residence.

Eligibility is limited to qualifying borrowers, not everyone with a Florida job. The program includes certain full-time workers employed by a Florida-based employer in designated occupations, such as healthcare, school staff, first responders, public safety and court employees, and childcare workers. Eligible servicemembers and veterans are also included under the program’s rules. Check the current occupation requirements on the Florida Hometown Heroes program page.

Here’s how the assistance could work on a $380,000 Orange County FHA purchase:

• ✔ FHA down payment at 3.5%: $380,000 × 3.5% = $13,300
• ✔ First mortgage amount: $380,000 − $13,300 = $366,700
• ✔ Hometown Heroes at 5%: $366,700 × 5% = $18,335
• ✔ The $18,335 covers the $13,300 down payment, leaving $5,035 potentially available for eligible closing costs or reserves, subject to lender rules and how the assistance is applied.

That can make a meaningful difference, but $0 down payment does not mean $0 cash to close. Earnest money, inspection and appraisal charges, prepaid interest and taxes, title costs, and escrow fees may still apply. Florida Housing assistance may be applied toward down payment and closing costs. Ask the lender how any remaining funds can be used in your transaction rather than assuming the whole balance will be available for a particular fee.

3. 2026 Income Caps & Credit Score Requirements Across Key Florida Counties

The income-limit question is more complicated than one statewide number because Hometown Heroes has two paths:

✔ TBA path: Counts the credit-qualifying income of the borrower or borrowers on the mortgage application. The limit is generally one amount per county, regardless of household size. In the current 2026 schedule, Orange County’s example limit is $172,350; Monroe County’s is $214,950; and many counties have a $148,050 limit.

✔ Bond path: Counts total household income, including other occupants age 18 or older and non-occupying spouses. Limits are lower and divided between households of one or two people and households of three or more.

These are different income tests, so ask which path applies before relying on a limit. The TBA county schedule was revised July 13, 2026, and limits can change. The controlling check is the current reservation-system information for your county and selected first mortgage. Loan limits may also vary by loan type. For a related explanation of loan-limit categories, see my article on high-balance conforming and jumbo loans.

For credit and debt-to-income qualifications, the general guidelines to discuss with your lender include:

✔ A 640 minimum FICO for FHA or VA first mortgages paired with Florida Housing assistance. Conventional options may require 660–680, depending on the program and underwriting.

✔ A maximum debt-to-income ratio generally around 45%–50%, depending on the program and underwriting path. A lower score, manual underwriting, or a monthly payment on a second lien may affect the result.

✔ Required homebuyer education. Confirm which approved course to take and when the certificate must be completed.

Florida Housing also sets first-time homebuyer rules for many programs, commonly based on not having owned and occupied a primary residence during the previous three years. Exceptions can apply, including for certain veterans. Have the lender verify how the rule applies to your program and circumstances.

Step-by-Step Guide: Getting Pre-Approved for Florida Housing DPA

Before you count on assistance, confirm these four items with the lender:

✔ The lender is Florida Housing-approved and participates in the specific program you plan to use.

✔ You know whether your application uses the TBA credit-qualifying income path or the Bond household-income path.

✔ Funds are currently available in the reservation system for the chosen program.

✔ You meet the credit-score floor for the first mortgage and assistance option being considered.

Then move through the pre-approval process in order:

1. Review your credit. Ask the lender to check the scores used for mortgage qualification and identify any issues that could affect the program choice.
2. Document qualifying income. Gather pay statements, W-2s, and details about bonuses or other income. Confirm which income calculation and county limit apply.
3. Complete homebuyer education. Ask the lender which course is approved and complete it within the required timeline.
4. Compare first-mortgage and second-lien choices. Review the full payment, interest rate, DTI impact, repayment trigger, and any forgiveness conditions. If you’re considering FL HLP, include its monthly payment in the budget.
5. Confirm the reservation before locking. Have the participating lender verify eligibility, current limits, and available funds in the reservation system.

A one-on-one strategy meeting can help you review Florida assistance options and questions to take to your lender.

FAQ

Does Florida Housing assistance have to be repaid?
It depends on the option. FL Assist and Hometown Heroes are deferred but not forgivable. FL HLP has monthly payments. HFA PLUS may be forgiven over five years if you meet its conditions; an unforgiven balance may be due if you sell, refinance, or move out early.

Who qualifies as a Hometown Heroes frontline worker?
The program defines eligible occupations. Current categories include certain healthcare, school, first responder, public safety and court, and childcare workers employed full-time by a Florida-based employer. Eligible servicemembers and veterans are also included under program rules. Verify your occupation with a participating lender.

Can I use a Florida Housing second mortgage by itself?
No. Florida Housing down-payment assistance is paired with an eligible Florida Housing first mortgage.

Bottom line

The name “3-O-1” can muddy the waters. Ask for the actual product: FL Assist, FL HLP, HFA PLUS, or Hometown Heroes. Each has its own costs, payment terms, eligibility rules, and repayment triggers, so I’d compare the complete loan structure rather than focusing only on the assistance amount.

Program limits and guidelines change, and lenders may apply their own overlays and minimum requirements. Confirm current terms with a participating lender before you make an offer or rely on a specific assistance amount.

If you’d like to review your options with me, book a one-on-one mortgage strategy call. I’ll help you understand what to ask and how the loan pieces fit together.

Corey Friedrich, NMLS #2746546
Mortgage Loan Officer | Remote Online Notary
BestDealFirst.com | Buy, Refi, Home Equity or Notarize
Direct Line: 909-550-1146 (Call or Text)
Email: Corey@BestDealFirst.com
Website: www.BestDealFirst.com
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