What is the Florida PLUS TBA Loan Program? | Up to 5% DPA

The Florida Housing PLUS TBA Program is a great option for homebuyers, offering forgivable second mortgages of up to 5% of the total loan amount.

This is more than the $10,000 maximum provided by the Standard TBA Program.

The PLUS Program works only with conventional loans and allows borrowers to have no payments on the second mortgage, which is fully forgiven after five years if they meet the program rules.

See Which Florida Down Payment Assistance Programs You Qualify For

This guide will explain the benefits, rules, and steps to apply, and everything you need to know to claim your down payment assistance from Florida Housing.

What is the Florida PLUS TBA Loan Program?

The Florida PLUS TBA Loan Program is designed to help you achieve homeownership with financial support. Through this program, you can receive a forgivable second mortgage equal to 3%, 4%, or 5% of your total loan amount, giving you significant help with your down payment and closing costs.

This second mortgage is interest-free, doesn’t require monthly payments, and is fully forgiven over five years. To qualify for forgiveness, you’ll need to keep the home as your primary residence and meet the program’s requirements.

The PLUS TBA Program is only available with Freddie Mac’s HFA Advantage loans, which also provide reduced mortgage insurance premiums if your income is at or below 80% of the Area Median Income (AMI).

While you can’t combine this program with other Florida Housing down payment assistance options, its generous terms make it an excellent choice if you’re a first-time homebuyer or purchasing a home in a designated targeted area.

See Which Florida Down Payment Assistance Programs You Qualify For

How Down Payment Assistance Works in the PLUS TBA Program

The Florida PLUS TBA Program gives you down payment assistance through a forgivable second mortgage, making homeownership more affordable.

You can receive 3%, 4%, or 5% of your total loan amount to help with your down payment and closing costs.

This second mortgage is completely forgivable over five years, with 20% of the balance forgiven each year on the anniversary of your loan closing, as long as you continue living in the home as your primary residence and stay current on your mortgage.

There’s no interest and no monthly payments, so you don’t have to worry about added financial strain.

See Which Florida Down Payment Assistance Programs You Qualify For

Benefits of the Florida PLUS TBA Loan Program

• Up to 5% forgivable down payment assistance.
• No interest and no monthly payments.
• Reduced mortgage insurance for eligible borrowers.
• Tailored for first-time homebuyers and targeted areas.
• Saves money with full forgiveness after five years.

See Which Florida Down Payment Assistance Programs You Qualify For

Requirements for Eligibility in the Florida PLUS TBA Loan Program

To qualify for the Florida PLUS TBA Loan Program, you’ll need to meet the following requirements:

1. First-Time Homebuyer Status: You must be a first-time homebuyer, which means you haven’t owned a primary residence in the last three years. Exceptions apply for veterans and those purchasing in federally designated targeted areas.

2. Primary Residence Requirement: The home you’re purchasing must be your primary residence, and you must continue to live in it for at least five years to qualify for full forgiveness of the second mortgage.

3. Income Limits: Your income must not exceed the maximum limit set for your household size and the county where the property is located. These limits ensure the program serves moderate- and low-income buyers.

4. Loan Type: You must use a Freddie Mac HFA Advantage loan, as the program is not available with FHA, VA, or other loan types.

5. Homebuyer Education: You’ll need to complete an approved homebuyer education course to ensure you’re fully prepared for the responsibilities of homeownership.

6. Property Requirements: The home you’re purchasing must meet the program’s guidelines, including being located within the state of Florida and conforming to loan limits.

See Which Florida Down Payment Assistance Programs You Qualify For

How To Claim The Down Payment Assistance

To get started, connect with a lender, such as MakeFloridaYourHome, to determine your eligibility and begin your application process.

Next, complete a homebuyer education course, either online or in person, to gain valuable insights into homeownership.

Your lender will then guide you in selecting the right loan and confirm the amount of assistance you qualify for.

When you close on your home, the down payment assistance will be applied as either a no-interest loan deferred for later repayment or a low-interest loan with manageable monthly payments.

Once the process is complete, you can focus on settling into your new home and enjoying affordable mortgage payments.

See Which Florida Down Payment Assistance Programs You Qualify For

Helpful FAQs About the Florida PLUS TBA Loan Program

1. Can I use the Florida PLUS TBA Loan Program for refinancing?
No, this program is only available for purchasing a primary residence, not for refinancing an existing mortgage.

2. What types of homes are eligible?
The program can be used for single-family homes, townhomes, and condominiums that meet Freddie Mac’s HFA Advantage loan requirements.

3. What happens if I sell or move out before the 5-year forgiveness period?
If you sell, transfer, refinance, or move out before the 5-year period is over, you will be required to repay the remaining balance of the second mortgage.

4. Is there a minimum credit score required?
Yes, you’ll need to meet Freddie Mac’s credit score requirements for the HFA Advantage loan, which is typically 640 or higher. However, your lender can provide specific guidance.

5. Can the assistance cover all my closing costs?
The assistance can be used for down payment, closing costs, and other eligible expenses, but it may not cover all costs. You should discuss any gaps with your lender.

6. Can I combine this program with other homebuyer grants or programs?
No, the Florida PLUS TBA Program cannot be combined with other Florida Housing down payment assistance programs, but you may qualify for other incentives based on local resources.

7. Do I need to repay the assistance if I meet all the requirements?
No, if you meet the program’s requirements and remain in the home for five years, the second mortgage is fully forgiven.

8. Is there a maximum purchase price for the home?
Yes, the program has maximum purchase price limits based on the county and type of property. Your lender will help you determine eligibility.

9. How long does it take to apply and close?
The timeline varies based on factors like loan processing and homebuyer education completion, but the average closing time is similar to standard mortgages.

10. Who can I contact for more information?
Reach out to an approved participating lender, such as MakeFloridaYourHome, to learn more and start your application.

See Which Florida Down Payment Assistance Programs You Qualify For

Next Steps

Begin by checking your eligibility for the $10,000 Florida PLUS TBA Loan Program online. This simple step ensures the program is available in your area and that you meet the basic requirements.

Once confirmed, connect with a participating lender who will guide you through the application, help you choose the right loan, and determine your down payment assistance amount.

After loan approval and completing a homebuyer education course, the assistance will be applied at closing to reduce your upfront costs.

Take the first step today by verifying your eligibility online!

See Which Florida Down Payment Assistance Programs You Qualify For