First time homebuyer benefits: what you actually get, and what you don't.

There's no single first time buyer mortgage

Many of the loans marketed to first time buyers aren't first time buyer programs at all. FHA, VA, USDA, HomeReady and Home Possible are all open to repeat buyers who qualify. The real first time buyer advantages are scattered across a handful of conventional options, pricing breaks, down payment assistance and local programs.

So the better question isn't "what do I get for being a first time buyer?" It's "what does my status unlock, and is any of it actually better than a normal mortgage?"

You may be a first time buyer even if you've owned before

For Fannie Mae and Freddie Mac, a first time buyer generally means no one buying the home has had an ownership interest in residential property in the past three years. That means:

Sold a home four years ago? You may qualify again.** Owned a timeshare only?** Freddie Mac doesn't count timeshares.** Owned a home only with an ex spouse?** Special rules may help displaced homemakers and single parents.** Own a rental property?** This one depends on the program. Under the agency definition, owning any residential property, including a rental, counts. But Florida Housing's definition focuses on whether you've owned a principal residence in the past three years, so a rental owner may still qualify for Florida's assistance. Check each program's definition before you rule yourself out.

Myths that cost first time buyers money

"FHA is the first time buyer loan." FHA is popular with first time buyers, but anyone who qualifies can use it, and with good credit, conventional is often cheaper. See conventional vs FHA.** "You need 20% down."** No. Conventional can go to 3%, FHA to 3.5%, and VA and USDA to zero for eligible buyers. Assistance can cover much of the rest.** "Assistance is free money."** Usually not. Most Florida assistance is a second mortgage you repay when you sell or refinance.

Benefits that actually come from being a first time buyer

3% down conventional. Freddie Mac's HomeOne allows 3% down for first time buyers on a one unit primary home, with no income cap. Standard 97% conventional loans also generally require at least one first time buyer. That's useful if your income is too high for HomeReady or Home Possible. See conventional down payment options.** Pricing breaks.** First time buyers at or below their area's median income can have certain conventional pricing adjustments waived, which can mean a better rate or fewer points.** The HomeReady $2,500 credit.** Fannie Mae offers a $2,500 credit toward down payment or closing costs on HomeReady purchases when income is at or below 50% of area median and at least one borrower is a first time buyer. It's currently available into early 2027. See HomeReady and Home Possible.** Florida down payment assistance.** Florida Housing offers several programs, usually requiring a 640 minimum credit score, homebuyer education, income and price limits, and a participating lender. The assistance comes as a package with Florida Housing's first mortgage. You can't take the assistance and use any first mortgage you want.

Program terms as published by Florida Housing in 2026. Funding and terms change, so confirm before you count on them.

Hometown Heroes

Florida's Hometown Heroes program helps income qualified first time buyers in eligible occupations: healthcare workers, school staff, first responders, public safety and court employees, childcare workers, military service members, and veterans working full time for a Florida employer. Only one borrower needs to qualify, and like FL Assist, it requires a 640 minimum credit score. Hometown Heroes borrowers may also get a rate below Florida Housing's standard offering, with origination and discount points waived.

Funding comes in waves. The 2025 cycle was fully committed in about six months. The program reopened on July 13, 2026 with $50 million, and it may run out again, so check current availability before you count on it.

Local assistance: always check if it's open

Counties and cities run their own programs, often funded through Florida's SHIP program, and they can be more generous than state assistance. But funding turns on and off. The City of Orlando's program, for example, isn't accepting new applications right now and points buyers to Orange County's program, which remains available subject to funding. Osceola, Seminole, Lake, Polk and others run their own. I always check current status before suggesting a program.

What first time status doesn't give you

It doesn't automatically mean a lower rate, no mortgage insurance, no closing costs, free down payment money, a higher approval amount, lower taxes or insurance, or eligibility for FHA, VA or USDA. Those come from separate programs and rules.

Is assistance always worth it?

No, and this may be the most important point on this page. Assistance can come with a higher first mortgage rate, a second mortgage that's due when you refinance, or a monthly payment that raises your debt ratio. Your own 5% down at a lower rate can cost less over time than $15,000 of assistance at a higher rate. Forgivable assistance at a competitive rate, held past the forgiveness period, can be excellent. The size of the assistance isn't the decision. The full structure is.

Seller credits may beat a program

Sometimes your own down payment plus a seller credit toward closing costs, points or a temporary buydown costs less than an assistance mortgage. Compare both. See gifts and seller help by loan.

Should you put 20% down?

Sometimes. It eliminates conventional mortgage insurance and lowers your payment. But a new homeowner suddenly owns the roof, the AC, the water heater and every surprise in between. There's nothing smart about being house rich and cash poor. Sometimes 10% down with real reserves is stronger than 20% down with $800 left in the bank.

My first time buyer checklist

1. Are you VA eligible? Compare VA first. 2. Is the home USDA eligible and your household income under the limit? Check USDA. 3. Price FHA and conventional side by side. 4. Check HomeReady, Home Possible and HomeOne. 5. Check Florida Housing and local assistance, and whether funding is open. 6. Compare the full cost: cash to close, rate, points, mortgage insurance, any second mortgage, repayment triggers, and how long you'll keep the home. Or start with Find My Loan.

I don't shop for the biggest advertised benefit. I shop for the cheapest complete loan for how long you'll keep it.

Assistance that didn't pay

Kayla qualified for $14,000 in deferred assistance, but the paired first mortgage rate was higher. She had 5% saved. Over the seven years she planned to stay, her own down payment with a lower rate cost less, and she avoided a second mortgage that would have come due when she refinanced.

Assistance that did

Marcus, a nurse with little savings, used Hometown Heroes with an FHA first mortgage. The assistance covered his down payment and most closing costs, and he plans to stay well past ten years. For him, getting in now was worth more than the deferred balance he'll repay when he sells.

First time buyer guides

Preapproval, cash to close and where your down payment can come from.