Is there down payment assistance in the Florida Keys?

Yes. Florida Keys buyers can use statewide Florida Housing programs like Hometown Heroes, Florida Assist, and HFA PLUS through participating lenders, and Monroe County administers local SHIP funds that can include purchase assistance for income-qualified buyers.

How much is the Florida Hometown Heroes program in 2026?

Hometown Heroes offers 5% of the first mortgage amount, with a $10,000 minimum and a $35,000 maximum, as a 0% interest deferred second mortgage. The 2026 to 2027 round was funded with $50 million and opened July 13, 2026.

Who qualifies for Florida Hometown Heroes?

Eligible full-time workers in Florida, including healthcare workers, K-12 school staff, first responders, public safety and court employees, childcare workers, and military members and veterans, who meet income limits, have a 640 or higher credit score, and have not owned a primary residence in the past three years.

Do I have to be a first-time homebuyer?

For most Florida Housing programs, yes, but first-time means you have not owned a primary residence in the past three years. Veterans are generally exempt.

Do I have to pay back down payment assistance?

It depends on the program. Hometown Heroes and Florida Assist are 0% deferred loans repaid when you sell, refinance, or move out. HFA PLUS grants are forgiven over five years if you stay in the home.

Can I combine down payment assistance programs in Florida?

You generally cannot combine two Florida Housing down payment assistance programs, but some local programs, such as county SHIP assistance, may be layered on top if the program rules allow it.

Down Payment Assistance In The Florida Keys: How Florida Buyers Can Get Help With Down Payment and Closing Costs

Krystal Sheehan

1 day ago

5 min read

The question I hear more than any other

"Krystal, I would love to buy here, but I will never have 20% down."

If you have ever said that, you are not alone. It is something I hear from the people who keep this island running: nurses, teachers, deputies, firefighters, the folks who have been renting here for years and love the Keys as much as I do.

I have been in real estate since 2004 and selling Key West since 2011, and before that I worked as a research manager. Digging into the fine print is my favorite part of this job.

So here is what I want every renter in the Keys to know: 20% down is a myth for most buyers, and there is money set aside specifically to help you. It is not easy money and it does not last long, but it is real.

Let me walk you through it.

Do you really need 20% down to buy a home in Florida?

No. Twenty percent down avoids private mortgage insurance on a conventional loan, but it is not a requirement to buy. Many loan types allow much less:

Loan type	Typical minimum down payment	Good to know
Conventional (first-time buyer options)	As little as 3%	Mortgage insurance until you reach about 20% equity
FHA	3.5%	More flexible on credit; mortgage insurance applies
VA	0%	For eligible veterans, active duty, and some surviving spouses
Florida Housing programs	Paired with down payment assistance	Must use a participating lender

In the Keys, condo financing has its own rules, and some buildings do not qualify for every loan type. That is one more reason to talk to a lender who knows the Keys before you fall in love with a specific unit.

What is the Florida Hometown Heroes program?

Florida Hometown Heroes is a state program run by the Florida Housing Finance Corporation that helps eligible full-time workers buy their first home in the community they serve. It provides a 0% interest, deferred second mortgage for down payment and closing costs.

Here is how it works (2026 terms):

Amount: 5% of your first mortgage amount, with a minimum of $10,000 and a maximum of $35,000
Interest: 0%, with no monthly payment. It is repaid when you sell, refinance, pay off the first mortgage, or stop living in the home
Who qualifies: essential workers including healthcare workers, K-12 school staff, first responders and public safety workers, court employees, childcare workers, and military members and veterans. Fully remote workers do not qualify
First-time buyer: generally, you cannot have owned and lived in a primary residence in the past three years (veterans are an exception)
Credit: minimum 640 credit score
Income limits: set by county, and Monroe County is treated as a high-cost county
Education: a homebuyer education course is required

The funding reality: The 2026 to 2027 state budget included $50 million for Hometown Heroes, and the new round opened July 13, 2026. Past rounds have run out quickly, and the 2025 funds were fully used up early in 2026. Funds are reserved first come, first served through participating lenders. If you might qualify, call a participating lender this week and ask if funds are still available.

What other Florida down payment assistance programs are available in The Florida Keys?

Florida Housing offers several other options, used with its first mortgage programs through participating lenders. Based on its mid-2026 program terms:

Program	Amount	How it is repaid
Florida Assist (FL Assist)	$10,000	0% interest, deferred. Repaid when you sell, refinance, or move out. Not forgiven.
Florida Homeownership Loan Program (FL HLP)	$12,500	3% interest, 30 year loan with a small monthly payment
HFA PLUS	3%, 4%, or 5% of your loan	Forgiven 20% per year over 5 years if you stay in the home and stay current

A few rules apply across the board:

640 minimum credit score
Homebuyer education is required before closing, and the certificate is good for two years
First-time buyer rule: no ownership in a primary residence in the last three years (with exceptions for veterans and certain targeted areas)
One Florida Housing assistance program per purchase. You generally cannot stack two Florida Housing assistance programs together, but some local programs can be layered on top

Is there down payment help in Monroe County and Key West?

Yes. Down payment assistance in Florida Keys aka Monroe County receives state SHIP (State Housing Initiatives Partnership) funds, which counties use for local housing help that can include purchase assistance for income-qualified buyers. The 2026 to 2027 state budget included $165.7 million for SHIP statewide. Amounts, income limits, and availability change from year to year, so contact Monroe County's housing office directly to ask what is open right now.

The Keys also have deed-restricted affordable and workforce housing, homes with income limits for buyers and caps on resale prices. They are not right for everyone, but for a lot of local workers they are the door in. I am happy to explain how they work and what to watch for.

"First-time homebuyer" does not mean what you think

This is the one that surprises people most. For most of these programs, you count as a first-time homebuyer if you have not owned a primary residence in the past three years.

So if you owned a home years ago, somewhere else, and you have been renting in the Keys since, you may qualify. Ask before you rule yourself out.

Other ways to lower what you bring to closing

VA loans: With Naval Air Station Key West right here, we have a big military and veteran community. VA loans can mean no down payment at all.
Gift funds: Many loan programs allow family members to gift money toward your down payment, with the right paperwork.
Seller concessions: In the right market, a seller may agree to pay part of your closing costs. Your agent negotiates this in the offer.
Your employer: Some Keys employers offer housing help. It never hurts to ask HR.

Your first three steps

Talk to a participating lender. Down payment assistance only works through approved lenders. Ask them which programs you qualify for and whether funding is still open.
Take the homebuyer education course. It is required for most programs, and it is good for two years. Get it done early.
Call me. I will help you understand what your budget actually buys in the Keys, which buildings and neighborhoods fit, and what rules (like insurance and flood) will affect your monthly cost.

Owning here is possible

Krystal & Ed Sheehan Celebrate their first home together in 2020

When I came back to Key West in 2011, I started as a property manager, so I know the rental side of this island well.

Too many longtime renters here assume ownership is out of reach without ever finding out what they qualify for. The money is not unlimited and the paperwork is real. But if you live here, work here, and want to stay here, it is worth a phone call to find out what you qualify for. The time is going to pass anyways, you might as well be working on a plan while it does. Let's figure it out together.

Krystal Sheehan · Brokered by eXp Realty · Licensed in Florida

kskeywest.com | @krystalsheehan.realtor | krystal@kskeywest.com

Program details are summarized from Florida Housing Finance Corporation materials and published reports as of October 2026. Funding, income limits, and terms change often. Confirm current availability with a participating lender or floridahousing.org. This post is general information, not lending, legal, or financial advice.