For most Florida buyers, the monthly payment isn’t the hard part. Saving the down payment is. On a $300,000 home, the FHA minimum of 3.5% is $10,500, and that’s before closing costs. Down payment assistance closes that gap.

North Star Mortgage Network offers an FHA down payment assistance program that pairs your FHA first mortgage with a second lien covering the down payment. It comes in three versions. Which one fits depends on your budget, your debt-to-income ratio and how much cash you have for closing.

How It Works

You take out a standard FHA first mortgage at 96.5% of the purchase price. A second lien covers the 3.5% down payment. Together they finance up to 100% of the home’s value, and one version goes to 101.5% to help with closing costs.

You make one application with one team, and both liens close together.

The Three Options at a Glance

Option 1: 0% Interest, No Payment, Forgivable

This is the most budget-friendly version. The second lien carries no interest and no monthly payment, and it is not counted in your debt-to-income ratio. That can make a real difference if your ratios are close to the limit. There are no income limits.

The second is deferred and forgivable, with a 3-year forgiveness option. If you sell or refinance before it’s forgiven, any balance still owed must be paid off at that time. Your loan disclosures spell out the exact forgiveness schedule.

Option 2: Repayable Over 10 Years

The second lien has a rate 2% higher than your first mortgage and is paid off over 10 years. The payment counts in your DTI. Because the second is paid off in a decade, you build equity faster than you would with a deferred second. It’s for purchases only, there’s no first-time buyer requirement, and it works with both conforming and high-balance FHA loan limits.

Example: a $10,500 second at a hypothetical 8.5% rate over 10 years is about $130 a month. That’s an estimate based on the information provided. Your actual rate and payment depend on market conditions and your credit profile.

Option 3: Help With Closing Costs Too

This works like Option 2, but the second lien is 5% of the price: 3.5% covers your down payment and 1.5% goes toward closing costs. Combined financing can reach 101.5% of the home’s value. That matters when you have the income but not much cash.

Option 3 is a 30-year fixed FHA purchase loan for 1–2 unit primary residences. It has no income limits and no first-time buyer requirement.

Example: on a $300,000 home, a $15,000 second at a hypothetical 8.5% over 10 years is about $186 a month. That’s an estimate based on the information provided.

Who Qualifies

All three options share the same basic requirements. Qualification is subject to credit approval, and program guidelines apply.

1. Loan type: FHA purchase of a primary residence, following FHA guidelines.
2. Credit score: 620 minimum with an automated approval (DU Approve/Eligible or LP Accept/Eligible). Your maximum DTI is whatever the automated approval allows.
3. Manual underwriting: allowed when automated approval isn’t possible. It needs a 660 minimum credit score and a 45% maximum debt-to-income ratio.
4. Loan size: loan amounts start at $75,000. Standard FHA limits apply, and high-balance amounts are available in Florida’s higher-cost counties.
5. 2-1 temporary buydown: available with any of the three options. It lowers your rate by 2% in year one and 1% in year two, usually paid for with seller credits. Here’s how a 2-1 buydown works.

One Rule to Know Before You Buy: It Cannot Be Subordinated

If rates drop and you want to refinance later, the second lien can’t be left in place behind a new first mortgage. Any balance still owed has to be paid off as part of the refinance. With Option 1, that only applies before the second is forgiven. With enough equity built, that’s usually just part of the new loan. It’s worth knowing now, though, so it doesn’t surprise you later.

How It Compares to Florida’s State Programs

Florida Hometown Heroes and the Florida Housing bond programs are excellent when you qualify, and we offer those too. But state programs have income limits, first-time-buyer rules and funding that can run out. This FHA down payment assistance program has its own eligibility rules, so it gives you another route when:

1. state program funds are paused or used up,
2. your income is above a state program’s limit (Options 1 and 3 have no income limits),
3. you’ve owned a home before (Options 2 and 3 have no first-time buyer requirement), or
4. you want an option that doesn’t add to your DTI (Option 1).

See our full guides to down payment assistance in Jacksonville and Florida Hometown Heroes. We’ll compare every program you’re eligible for side by side.

Why Use a Broker for Down Payment Assistance

Down payment assistance programs vary a lot in rate, terms and fine print. As an independent broker since 2000, North Star Mortgage Network works with many wholesale lenders. That lets us compare your options instead of steering you toward whatever one bank offers. You get competitive pricing, a clear side-by-side breakdown, and fast closings on complete files.

Frequently Asked Questions

Can I buy a home in Florida with no money down on an FHA loan?

Yes, if you qualify. With an FHA first mortgage and a down payment assistance second, the combined financing can reach 100% of the home’s value, so the 3.5% down payment is covered. You’ll still need to plan for some closing costs unless you use Option 3 or seller credits.

What credit score do I need for FHA down payment assistance?

The minimum is 620 with an automated underwriting approval. If the file needs manual underwriting, the minimum is 660 with a maximum 45% debt-to-income ratio. All loans are subject to credit approval.

Do I have to pay the down payment assistance back?

It depends on the option. Option 1 is a deferred, forgivable second lien with 0% interest and a 3-year forgiveness option. If you sell or refinance before it’s forgiven, any remaining balance is due. Options 2 and 3 are repaid in monthly payments over 10 years.

Are there income limits or first-time buyer requirements?

Options 1 and 3 have no income limits. Options 2 and 3 have no first-time buyer requirement. Program guidelines apply, so we’ll confirm which options fit your situation.

Does the assistance count against my debt-to-income ratio?

For Option 1, no. It has no payment, so it isn’t counted in your DTI. For Options 2 and 3, the monthly payment is included in your DTI.

Can I refinance later if rates drop?

Yes, but the second lien can’t be subordinated. Any balance still owed has to be paid off as part of the refinance.

Can I combine this with a 2-1 buydown?

Yes. A 2-1 temporary buydown is available with all three options. It’s often paid for with seller concessions.

Find Out Which Option Fits You

Getting started takes one conversation. No Social Security number is needed for a first look at your options.

1. Call or text: 904-880-6741
2. Get a free rate quote: Request a quote
3. Ready to apply: Start your application

North Star Mortgage Network, Inc. · Serving Florida Since 2000
12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 · 904-880-6741 · www.nsmn.com
Company NMLS #356789 | Nathan Young NMLS #325206
2025 NAMB Mortgage Broker of the Year · Hundreds of 5-Star Google Reviews

Available for qualified borrowers. All loans are subject to credit approval. Program guidelines apply. Rates and terms are subject to change without notice. Payment examples are estimates based on the information provided and are not a commitment to lend. FHA guidelines may change, and lender overlays may be stricter than agency minimums. Down payment assistance is a second lien that is repaid or forgiven according to its terms. Not all applicants will qualify. Reviewed September 2026.