Orange County Down Payment Assistance and First-Time Homebuyer Programs

Down payment assistance programs in Orange County

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

Orange County Down Payment Assistance Program

Florida’s Orange County residents can benefit from the region’s Down Payment Assistance Program, which provides funding to income-eligible first-time homebuyers for down payment and closing costs associated with purchasing a home. The assistance provided will be determined based on household income and size.

Assistance type: Deferred payment loan

Sponsor: Orange County

Assistance amount: Up to $45,000

Minimum borrower contribution: The greater of $1000 or 1.75 percent of the purchase price towards downpayment and closing costs

Eligibility requirements

• Applicants must be first-time homebuyers, legal residents of the US, and have established residency in the Orlando Metropolitan Statistical Area within the last 12 months.
• All homes purchased through this program must not exceed the maximum purchase price of $200,000.
• Applicants must repay the loan if the home is sold, rented, refinanced without prior approval of Orange County or no longer serves as the applicant’s primary residence during the lien period.

Statewide down payment assistance programs available in Orange County

Florida Housing Finance Corporation

The Florida Housing Finance Corporation (FHFC) is a state agency established to assist low to moderate-income individuals and families across the state in obtaining safe, decent, and affordable housing. This agency provides several programs, including a Hometown Heroes Program for eligible community workforce and the Homeownership Pool (HOP) Program, designed to provide purchase assistance on a first-come, first-served basis. Eligible homebuyers can also explore FHFC’s Mortgage Credit Certificates (MCC).

Assistance type: Deferred payment loan

Sponsor: FHFC

Assistance amount: 5% of the first mortgage loan amount for the HHP and 10% to 50% of their mortgage interest for MCC

Minimum borrower contribution: None

Eligibility requirements

• These programs are available to the full-time workforce employed by a Florida-based employer.
• The home must be a primary residence in the community where applicants work and serve.
• Applicants must meet income requirements and loan limits.

Florida Down Payment Assistance

Unlike some down payment assistance programs and other mortgage financing options available, the Florida Down Payment Assistance program provides free mortgage financing as a service to the local Florida community. These programs include loan funds, conventional mortgage financing, mortgage grants, and other down payment assistance options across various Florida counties.

Assistance type: Deferred payment loan, Grants

Sponsor: Mid Florida Realty

Assistance amount: Depends on the assistance program

Minimum borrower contribution: None

Eligibility requirements

• Applicants must meet each program’s county Area Median Income (AMI) income limit and other unique requirements.
• Eligible applicants must be US citizens, permanent and non-permanent aliens with a valid social security number, an acceptable visa or employment authorization documentation.
• Assistance must be used for primary residence only.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.