First-Time Buyer Programs in Florida: An Overview

What first-time buyer means in practice

Most programs define a first-time buyer as someone who has not owned a principal residence in the past three years, which means people who owned a home years ago, or who owned only with a former spouse, often still qualify. Each program has its own definition, income limits, purchase price limits, and credit requirements, and those limits differ between Miami-Dade and Broward.

The programs described below exist at the time of writing, but their terms, funding, and availability change frequently. Treat this guide as a map of what to ask about, and confirm every detail with a participating lender before relying on it.

FHA loans

FHA loans are insured by the Federal Housing Administration and allow a down payment as low as 3.5 percent with more flexible credit requirements than most conventional loans. The buyer pays an upfront mortgage insurance premium plus a monthly premium, and the loan amount is capped by county limits that are published each year.

In South Florida the main limitation of FHA is condos: the building must be FHA approved, and many are not. FHA works well for single-family homes and townhomes, and the appraisal includes minimum property standards, so homes with safety or habitability issues may require repairs before closing.

VA loans

VA loans are guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members, and some surviving spouses. They allow zero down payment, do not require monthly mortgage insurance, and typically carry competitive rates. A one-time funding fee applies unless the borrower is exempt.

With Homestead Air Reserve Base and a large veteran population in South Florida, VA loans are common here. As with FHA, condo projects must be approved by the VA, and the appraisal applies the VA's minimum property requirements.

Conventional loans with 3 percent down

Fannie Mae and Freddie Mac offer conventional programs, commonly marketed as HomeReady and Home Possible, that allow a 3 percent down payment for qualifying buyers, often with income limits tied to the area median income. Private mortgage insurance applies until the loan reaches a certain equity level and can then be removed, which is a difference from FHA.

Conventional financing gives the widest choice of condos, since it depends on the building being warrantable rather than on a government approval list. Buyers with good credit and stable income often find that a 3 or 5 percent conventional loan costs less over time than FHA.

Down-payment assistance: state and county

Florida Housing Finance Corporation, the state's housing finance agency, offers first mortgage programs paired with down-payment and closing-cost assistance, generally structured as a second mortgage that is deferred, forgivable, or repayable, depending on the program. It also runs a program aimed at eligible Florida workers. Buyers access these through participating lenders and must usually complete a homebuyer education course.

Miami-Dade County and Broward County, along with several cities, run their own assistance programs funded through state and federal housing dollars, with income limits and purchase price caps that are periodically updated. Funding is limited and sometimes runs out within a fiscal year, so timing matters. The housing agency and the lender together determine eligibility; no listing or website can promise a specific amount.

How to prepare

Pull your credit reports and correct errors several months before shopping. Avoid opening new credit lines or making large purchases before closing. Save for the down payment and also for closing costs, the inspection, the appraisal, and the first year of insurance, which lenders often collect at closing.

Gather two years of tax returns, recent pay stubs, bank statements, and documentation for any gift funds. Speak with at least two lenders who actively work with first-time buyer programs in Miami-Dade and Broward, because not every lender participates in every program, and compare their written estimates side by side.

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