26. September 2026

How Much Down Payment Do I Need in Florida, and What Assistance Can Help in Hillsborough and Pasco?

Short answer: Many Florida buyers need far less than 20% down. Conventional loans can start at 3% for qualifying first-time buyers (5% is common otherwise), FHA loans at 3.5% with a 580 credit score, and VA and USDA loans at 0%. On top of that, programs like Florida Hometown Heroes (active for 2026), Florida Assist, and county programs in Hillsborough and Pasco can help cover the down payment and closing costs if you meet their income, credit, and first-time-buyer rules.

Minimum down payment by loan type

The loan type sets the floor:

• Conventional, 3% down: Available through first-time and lower-income programs. For example, Fannie Mae's HomeReady allows 3% down for buyers earning at or below 80% of the area median income. Credit scores of 620 or higher are generally expected.
• Conventional, 5% down: A common starting point for standard conventional loans when you do not use a special program.
• FHA, 3.5% down: Requires a credit score of at least 580. Scores from 500 to 579 require 10% down. The 2026 FHA loan limit for a single-family home in Hillsborough and Pasco is $541,287.
• VA, 0% down: According to the U.S. Department of Veterans Affairs, eligible veterans and service members need no down payment as long as the price is not higher than the appraised value. There is no monthly mortgage insurance, though a one-time VA funding fee may apply.
• USDA, 0% down: USDA Rural Development offers 100% financing in eligible rural areas for households earning no more than 115% of the area median income. Parts of Pasco County do qualify: as of June 2026, USDAProperties.com estimated about 70% of the county falls inside USDA-eligible boundaries, with the larger cities and towns generally excluded. Always check a specific address on USDA's eligibility map.

You will also need closing costs, including Florida's documentary stamp tax on the mortgage note ($0.35 per $100 borrowed) and intangible tax ($0.20 per $100 borrowed), both customarily paid by the buyer.

Mortgage insurance basics (PMI and FHA MIP)

With less than 20% down, lenders usually require mortgage insurance. It protects the lender, but it is what makes a small down payment possible.

• Conventional PMI: Under the federal Homeowners Protection Act, as explained by the Consumer Financial Protection Bureau, you can ask to cancel PMI once your balance reaches 80% of the home's original value, if you have a good payment history. It ends automatically at 78% if you are current on payments.
• FHA mortgage insurance (MIP): FHA charges an upfront premium of 1.75% of the loan, which is usually added to the loan, plus an annual premium paid monthly. HUD cut the annual premium to 0.55% for most FHA loans in March 2023. FHA insurance does not come off the same way PMI does, so ask your lender how long it will last on your loan.

Florida Hometown Heroes: active for 2026

Florida Housing's Hometown Heroes serves first-time buyers who work full time for a Florida-based employer, including teachers, health care workers, law enforcement, firefighters, childcare workers, active military, and veterans.

• Amount: 5% of the first mortgage, with a minimum of $10,000 and a maximum of $35,000, for down payment and closing costs.
• Terms: A 0% interest, deferred second mortgage with no monthly payment. It is repaid when you sell, refinance, transfer the home, or stop living there.
• Requirements: A minimum 640 credit score, county income limits, a homebuyer education course, and a participating lender.

Funding status: The 2025–2026 round of $50 million, which opened in August 2025, was fully committed within six months, according to a February 2026 Florida Housing press release. The program reopened on July 13, 2026 with another $50 million, and as of September 25, 2026, the eHousingPlus program summary for Florida Housing showed more than $25 million still available. Funding is first-come, first-served and has run out quickly before, so confirm current availability with a participating lender before you count on it.

Florida Assist and HFA Preferred/Advantage PLUS

If you do not qualify for Hometown Heroes, Florida Housing has other statewide options. All of them require a 640 credit score, homebuyer education, a participating lender, and county income and price limits. You generally must not have owned and lived in a primary residence in the past three years.

• Florida Assist: Up to $10,000 as a 0%, deferred second mortgage with no monthly payment. Repaid when you sell, refinance, or move out.
• HFA Preferred / HFA Advantage PLUS: 3%, 4%, or 5% of the loan amount, paired with a conventional HFA first mortgage. This one is forgivable: it is forgiven at 20% per year over five years, so if you stay in the home for five years, you owe nothing back.

One thing to weigh carefully: the first mortgage rates on these programs can be higher than the market average. As of September 24, 2026, Freddie Mac reported an average 30-year fixed rate of 7.03%. Ask your lender to compare total costs with and without assistance.

Hillsborough County and Pasco County programs

Hillsborough County: The county's down payment assistance page points buyers to the Housing Finance Authority's Home Sweet Home Hillsborough program. According to the Home Sweet Home program site, it offers up to $25,000 in Hillsborough as a 0% deferred, 30-year second mortgage. It is not forgiven; it is repaid if you sell, refinance, transfer, or rent out the home within 30 years. It requires a 640 credit score, first-time buyer status (with exceptions for veterans and targeted areas), and homebuyer education. Income and price limits and current funding were not listed, so call the Housing Finance Authority at (813) 425-5959 to confirm.

Pasco County: According to the Pasco County Down Payment Assistance Program page, the county was accepting applications as of September 2026:

• Up to $65,000 for very low-income households (50% of area median income) and up to $50,000 for low-income households (80%)
• A 0%, 30-year deferred second mortgage that is forgiven after 30 years
• Maximum purchase price of $330,000
• Income limits (May 2026) at 80% of median: $64,250 for one person, $73,400 for two, $91,750 for a household of four
• Buyer contribution of $500 to $1,250 and a required county homebuyer class through Suncoast Housing Connections

Because the $330,000 cap is below Pasco's typical sale price, this program usually fits smaller homes, townhomes, and condos. Confirm funding with the county before you shop.

A worked example on a typical Pasco home

As of August 2026, the median sale price in Pasco County was $348,833, according to Redfin's Pasco County housing market page. Here is the math on a $349,000 home, for example in Wesley Chapel 33544:

• 20% down: $69,800
• Conventional 5% down: $17,450
• FHA 3.5% down: $12,215
• Conventional 3% down: $10,470
• VA or USDA (if eligible): $0

With FHA at 3.5% down, the base loan is $336,785. The upfront FHA premium would be about $5,894 (1.75%), usually added to the loan. The annual premium at 0.55% works out to about $154 a month. Principal and interest on $336,785 at 7.03% for 30 years is about $2,247 a month, before property taxes, homeowners insurance, and mortgage insurance.

If this buyer qualifies for Hometown Heroes, 5% of the $336,785 first mortgage is about $16,839. That covers the $12,215 down payment and leaves about $4,624 toward closing costs, such as the note stamps (about $1,179) and intangible tax (about $674) on that loan amount. This home would be above Pasco County's $330,000 cap, so the county program would not apply here.

Questions people also ask

Do I have to be a first-time buyer to get down payment help in Florida?

For most state and county programs, yes. Florida Housing generally treats you as a first-time buyer if you have not owned and lived in a primary residence in the past three years. Veterans and buyers in certain targeted areas may have exceptions.

Is down payment assistance free money?

Usually it is a second mortgage, not a gift. Some, like HFA PLUS and Pasco County's program, are forgiven over time. Others, like Hometown Heroes, Florida Assist, and Home Sweet Home Hillsborough, must be repaid when you sell, refinance, or move out.

What credit score do I need?

Florida Housing programs, including Hometown Heroes, require 640. FHA allows 580 for 3.5% down; conventional loans generally start around 620.

Talk it through with Michael

Michael offers a free, no-pressure 15-minute call to help you map out your next steps and connect with a participating lender. Book a free 15-minute call or reach him at (813) 453-0108.

This article is general information only and is not legal, tax, or financial advice. Program rules, income limits, and funding change often; please confirm details with a licensed mortgage lender who participates in Florida Housing or county programs, and speak with a CPA or real estate attorney about your specific situation. Michael E. Siebel is a Realtor with LPT Realty.

Last updated: September 2026