Hometown Heroes Program Updates for 2025 — Everything You Need to Know

Big news for Florida’s hometown heroes! Beginning July 1, 2024, the Florida Hometown Heroes Program will introduce exciting updates aimed at making homeownership more achievable for working Floridians. With expanded eligibility, increased assistance, and simplified processes, this initiative is more accessible than ever.

At Merchants Home Lending, we’re committed to helping everyday heroes across Florida unlock the benefits of this program — whether you’re a teacher, nurse, veteran, or simply employed and working hard in your community.

What Is the Florida Hometown Heroes Program?

The Florida Hometown Heroes Program provides down payment and closing cost assistance to first-time homebuyers who are employed in Florida and purchasing a home in the community they serve. Originally created to support frontline workers, the program is now available to all working Floridians — making it more inclusive than ever before.

Key Benefits:

• Up to $35,000 in down payment and closing cost assistance
• Exemption from documentary stamp tax and intangible tax
• Access to a range of affordable mortgage options
• Expanded income and loan limits
• Streamlined application and approval process

Who Qualifies for the Florida Hometown Heroes Program?

Eligibility criteria for the 2025 updates are designed to include more Floridians who contribute to their communities:

✅ First-Time Homebuyer Status - Applicants must not have owned a primary residence in the last 3 years. Veterans are exempt from this rule and can apply at any time!

✅ Minimum Credit Score of 640 - This ensures buyers are financially ready to manage homeownership.

✅ Income Limit - Earn less than 150% of your county's Area Median Income (AMI) to qualify.

✅ Employment by a Florida-Based Employer - You must work for an organization or business headquartered in Florida.

✅ Purchase in Your Work Community - Buy a home in the same county or community where you're employed.

What’s Changing on July 1, 2024?

The Florida Housing Finance Corporation is rolling out impactful updates that will take effect starting July 1, 2024. Here’s what’s new:

1. Increased Down Payment Assistance

The maximum assistance is increasing from $25,000 to $35,000, helping more buyers meet upfront costs and reducing financial barriers to homeownership.

2. Expanded Eligibility

Now open to all employed Floridians, not just frontline or essential workers — broadening access for those contributing to their local economies and neighborhoods.

3. Additional Funding

An extra $100 million in funding ensures more qualified applicants can receive the support they need without delays or waitlists.

These updates reflect Florida’s growing commitment to empowering its residents through sustainable and affordable homeownership.

What Mortgage Loan Options Are Available?

With Merchants Home Lending, buyers using the Hometown Heroes Program can access a range of flexible mortgage options, including:

• FHA Loans – Lower credit score requirements and down payments.
• VA Loans – Zero down payment and no mortgage insurance for eligible veterans.
• USDA Loans – No down payment for homes in qualifying rural areas.
• Conventional Loans – Competitively priced with as little as 3% down for qualified buyers.

We’ll help match you with the best loan product based on your credit, income, and goals.

County-Specific Income and Loan Limits

Income and loan limits vary by location. Here are a few examples:

For exact figures in your area, speak with a Merchants Home Lending advisor or visit the Florida Housing Finance Corporation’s website.

How to Apply Through Merchants Home Lending

Getting started with the Hometown Heroes Program is easy when you work with Merchants Home Lending:

1. Connect with Our Team: We’ll assess your eligibility and explain your best loan options.
2. Apply for the Program: Our advisors will help you complete the application and submit all necessary documentation.
3. Find Your Dream Home: Once approved, you can begin shopping for a home in your local community.
4. Reserve Your Funds: Once your loan is approved, we’ll help reserve your down payment assistance (typically involves a 1% reservation fee).
5. Close with Confidence: At closing, your down payment assistance will be applied — making the purchase smooth and affordable.

⏱ Timeline: The entire process typically takes 30–60 days.

Tax Benefits That Can Save You Thousands

Another major perk of the Hometown Heroes Program is the Florida mortgage tax exemptions:

• Documentary Stamp Tax exemption
• Intangible Tax exemption on first and second mortgages

These exemptions, based on Section 420.513(1), can save you approximately $2,000 for every $100,000 financed.

Questions? Merchants Home Lending Is Here to Help!

Whether you're a nurse in Naples, a firefighter in Fort Lauderdale, or a teacher in Tampa — if you're working and looking to buy your first home, the Florida Hometown Heroes Program is designed for you.

At Merchants Home Lending, we specialize in guiding Florida’s everyday heroes through the home buying process. From pre-approval to closing day, we’re with you every step of the way.

📞 Contact us today to speak with a certified Hometown Heroes lending expert and start your path to homeownership!

Frequently Asked Questions (FAQs)

1. Can I use the Hometown Heroes Program if I’m not in a frontline profession?

Yes. As of July 1, 2024, the program is open to all working Floridians employed by a Florida-based company — not just first responders, healthcare workers, or teachers. As long as you meet the other eligibility criteria, you can apply.

2. Is the $35,000 assistance a grant or a loan?

The assistance is provided as a zero-interest, non-amortizing second mortgage. No monthly payments are required, and the loan is only due upon sale, refinance, or transfer of the home. This makes it an incredibly affordable way to get help with your down payment and closing costs.

3. Can I use the Hometown Heroes Program to buy a second home or investment property?

No. The program is strictly for primary residences only. You must live in the home as your primary residence, and you cannot use the funds to purchase a second home, vacation property, or rental unit.

4. How do I know if I meet the income limits for my area?

Income limits vary by county and are based on 150% of the Area Median Income (AMI). You can check your specific income threshold by speaking with a Merchants Home Lending advisor or visiting the Florida Housing Finance Corporation's website.

5. How long does the Hometown Heroes application and approval process take?

Typically, the full process — from pre-qualification to closing — takes around 30 to 60 days. Factors such as underwriting timelines, document submissions, and property inspections can affect this timeline, but working with Merchants Home Lending helps streamline the process.