Even though cash remains king to many home sellers, a range of programs exist to help first-time homebuyers with down payments and/or closing costs. In Florida, the state administers three programs through the Florida Housing Finance Corporation (FHFC).

The Florida Assist (FL Assist) offers up to $10,000 on FHA, VA, USDA and conventional loans as a 0%, non-amortizing, deferred second mortgage. The aid isn’t forgivable – it must be paid back. However, the money doesn’t have to be repaid until the buyer sells or transfers the home, satisfies the first mortgage, refinances or moves out.

The Florida Homeownership Loan Program (FL HLP) Second Mortgage also offers $10,000. It works as a 3% fully-amortizing, second mortgage over a 15-year term that includes a monthly payment. The remaining unpaid principal balance (UPB) is deferred, though, unless the first-time buyer sells or transfers the deed, satisfies the first mortgage, refinances or moves. (Note: It carries a monthly payment that may need to be considered in a borrower’s debt-to-income (DTI) ratio for credit underwriting).

The HFA Preferred and HFA Advantage PLUS Second Mortgage are down payment and closing cost programs that offer buyers 3%, 4% or 5% of the total loan amount in a forgivable second mortgage. The “forgive” rate is 20% per year over its 5-year term when used with Florida Housing’s conventional HFA Preferred for TBA or HFA Advantage for TBA first mortgage products. The “PLUS” Second Mortgage is available only with these conventional first mortgage products.

First-time homebuyers don’t have to wade through the three loan program details on their own, however. FHFA also has a Homebuyer Program Wizard that considers individual circumstances and makes a recommendation.