Florida Hometown Heroes vs. FL HLP: Which Fits?

Florida Housing offers more than one way to help with a down payment. Hometown Heroes and the Florida Homeownership Loan Program, or FL HLP, work in different ways.

Hometown Heroes is limited to certain workers, service members, and veterans. It has no monthly payment on the second mortgage. FL HLP is broader, but it adds a monthly second-mortgage payment.

Neither program is free money. Both create a second mortgage. Program terms, limits, funding, and lender rules can change.

A participating lender must confirm your current options before you apply.

Quick comparison

Feature	Hometown Heroes	FL HLP
Who may qualify	Certain full-time Florida workers, service members, and veterans.	Eligible buyers using a Florida Housing first mortgage.
First-time buyer rule	Florida Housing first-time-buyer and other program rules may apply.	Usually for first-time buyers. Florida Housing defines this as not owning and occupying a primary home during the last three years.
Assistance	Up to 5% of the first mortgage, with a current minimum of $10,000 and maximum of $35,000.	$12,500.
Second-mortgage rate	0%.	3% fixed rate.
Term and payment	30-year deferred second mortgage. No monthly payment.	30-year fully amortizing second mortgage. It has a monthly payment. Florida Housing materials list about $52.70 for the $12,500 loan.
Forgiven?	No.	No.
DTI effect	No monthly second-mortgage payment is listed.	The payment may need to be counted in your debt-to-income ratio, or DTI.
Occupancy	The home must be your primary residence.	The home must be your primary residence.
Possible payoff triggers	Sale, refinance of the first mortgage, deed transfer, or loss of primary occupancy.	Sale, refinance, deed transfer, payoff or satisfaction of the first mortgage, or loss of primary occupancy.

Florida Housing lists the current Hometown Heroes terms. Its Homebuyer Program overview lists the current FL HLP structure.

When Hometown Heroes may fit

Hometown Heroes is for specific groups. One borrower must meet the program's work or service rules.

• A full-time worker for a Florida-based employer in an eligible field.
• An active service member in an eligible military, reserve, Coast Guard, or Florida National Guard group.
• A veteran who works full-time for a Florida-based employer.

Eligible fields include health care, schools, first response, public safety, courts, and child care. The full occupation list is detailed. Your job title alone may not prove eligibility.

A lender must review your employer, work status, occupation, income, and loan type. Florida Housing also says there is no cost to apply for Hometown Heroes. Be careful if someone asks for an upfront program application fee.

When FL HLP may fit

FL HLP does not use the Hometown Heroes occupation test. It is tied to Florida Housing's standard Homebuyer Program and an eligible first mortgage.

FL HLP offers $12,500 at 3% over 30 years. The loan has a monthly payment. That payment may affect DTI during underwriting.

This matters when your debts are close to the lender's limit. A lender must review the full payment, including the first mortgage, taxes, insurance, mortgage insurance, and any homeowners association dues.

Deferred does not mean forgiven

Hometown Heroes has no monthly payment, but the balance remains. It is not forgiven. The balance may become due when you sell, refinance the first mortgage, transfer the deed, or stop using the home as your primary residence.

FL HLP has a monthly payment. The balance can decline as you make payments. Any unpaid balance may become due when you sell, refinance, transfer the deed, pay off the first mortgage, or stop using the home as your primary residence.

If you may refinance soon, ask for both payoff amounts before choosing a program. Assistance that lowers cash needed today can still create a payoff need later.

Primary residence rules

Neither program is for a rental, vacation home, or second home. The home must be your primary residence.

For a St. Petersburg or Pinellas County buyer, confirm the occupancy rule before making an offer. Your lender should review the property, borrower, and loan details together.

Income, credit, and purchase limits

Florida Housing programs use county income and purchase-price limits. The limits can change. They can also vary by loan type and household details.

Florida Housing's Homebuyer Program overview lists a 640 minimum credit score, approved homebuyer education, county income limits, county purchase-price limits, and a first-time-buyer rule. These are program rules. The lender's underwriting review is separate.

Do not use an old limit sheet to plan your purchase. Ask the participating lender for the current limits for your county and first-mortgage product. This is especially important in Pinellas County.

How assistance changes cash to close

Both programs may help with the down payment and closing costs. They may lower the money you need at closing. They may not reduce your cash to zero.

Your cash to close may include the down payment, lender fees, title charges, prepaid insurance, property taxes, escrow deposits, and other costs. Earnest money already paid may appear as a credit on the closing disclosure.

Ask for a written estimate that shows:

• The first-mortgage amount.
• The exact assistance amount.
• The second-mortgage payment, if any.
• Seller credits and other funds.
• Your remaining cash to close.

Read our guide on whether earnest money can count toward down payment or closing costs in Florida.

Do not confuse FL HLP with PLUS

Florida Housing also offers certain PLUS second mortgages. PLUS is a separate product. Florida Housing's overview describes some PLUS loans as 3%, 4%, or 5% forgivable second mortgages over five years when used with eligible conventional first mortgages.

That is different from Hometown Heroes and FL HLP. Ask the lender to name the exact second-mortgage product in your loan documents.

Which program may be the better fit?

Hometown Heroes may fit if:

• You meet the current work or service rules.
• You want no monthly payment on the second mortgage.
• You need more than $12,500 and your first-mortgage amount makes that possible.
• You understand that the balance is deferred, not forgiven.

FL HLP may fit if:

• You qualify for Florida Housing but not for Hometown Heroes.
• You want a set $12,500 assistance amount.
• Your budget and DTI can support the monthly payment.
• You understand the later payoff rules.

Ask these questions before you apply

1. Do I meet the current Hometown Heroes occupation or service rules?
2. What current income and purchase-price limits apply to my county?
3. What is my exact second-mortgage payment?
4. How will that payment affect my DTI?
5. How much cash will I need at closing?
6. What balance may be due if I refinance or sell?
7. Are funds available for my loan when the lender submits it?

Start with a Florida Housing participating lender before making an offer. A lender can check the current program rules, funding status, underwriting, and property details.

A low down payment does not remove the need to budget for the full monthly housing payment. See Why Is My Florida Mortgage Payment Higher Than P&I?.

FAQ

Can I use Hometown Heroes and FL HLP together?

Do not assume that you can. They are separate assistance structures. The lender must confirm which product is available with your selected first mortgage.

Does Hometown Heroes have a monthly payment?

No. It is a 0% non-amortizing deferred second mortgage. It is not forgiven.

Does FL HLP have a monthly payment?

Yes. Florida Housing describes it as a $12,500, 3%, fully amortizing second mortgage over 30 years.

Can I refinance later?

Possibly. Refinancing may trigger repayment of the assistance balance. Ask for a payoff review before refinancing.

When should I apply?

Start before you make an offer. Funding, limits, rates, and lender rules can change. Do not assume funds are available until the participating lender confirms the current process.

Official sources

• Florida Housing Hometown Heroes Program
• Florida Housing Homebuyer Program Overview
• Florida Housing Hometown Heroes Eligible Occupations
• Florida Housing Participating Lender Locator

Compliance note: This article is for education only. Program terms, funding, limits, rates, and eligibility can change. All loans are subject to underwriting and credit approval. This is not a commitment to lend.