City of Tampa DARE Program — Up to $50,000 in Down Payment Assistance

Most Tampa Bay homebuyers know about the Florida Hometown Heroes and FL Assist programs, but there is a third source of down payment help that many buyers inside Tampa city limits never hear about: the City of Tampa's own Dare to Own the Dream program, commonly known as DARE.

DARE offers eligible first-time buyers up to $50,000 in down payment and closing cost assistance as a zero-interest, silent second mortgage. That figure dwarfs the $10,000 available through FL Assist and can significantly exceed the Hometown Heroes benefit for buyers in lower price ranges. If you are buying within Tampa city limits, understanding this program before you go under contract could change your entire financial picture at the closing table.

What Is the City of Tampa DARE Program?

The Dare to Own the Dream Homeownership Program (DARE) is a City of Tampa initiative funded through a combination of federal Community Development Block Grant (CDBG) money, HOME Investment Partnerships funds, and state sources. It is administered through the City's Housing and Community Development division and delivered through a network of approved housing counseling agencies.

DARE provides assistance as a deferred, zero-interest second mortgage placed behind your primary loan. The second mortgage carries no monthly payment — it sits "silently" behind your first mortgage and requires repayment only when you sell, refinance, or move out of the home. There are no accruing interest charges and no penalties for keeping the loan in place for years. Many buyers effectively hold the DARE loan for a decade or more with zero cost.

Down payment assistance programs typically fall into two categories: forgivable grants that disappear over time, and deferred loans repaid at a future trigger event. DARE is a deferred loan, not a forgivable grant, which means the full amount is eventually due — but the total absence of interest makes it among the lowest-cost assistance available to Tampa buyers.

Who Qualifies for the City of Tampa DARE Program?

Eligibility for DARE is more flexible on credit score than many state programs but comes with geographic and income restrictions that the statewide options do not carry. Core requirements as of 2026:

Geographic restriction: You must purchase a home within Tampa city limits. Properties in unincorporated Hillsborough County, Temple Terrace, Plant City, or neighboring Pinellas County do not qualify, even if the address says "Tampa." The program also extends to the East Tampa Community Redevelopment Area (CRA), which falls within city limits.

First-time buyer status: You must not have owned a primary residence in the past three years. This is the same standard used by most Florida DPA programs.

Income limits: Your total household income must be at or below 140% of the Area Median Income (AMI) for the Tampa metropolitan area. This is a notably generous cap — most state programs cap buyers at 80% to 120% AMI. The 140% threshold means many moderate-income households earning well above typical DPA limits can still qualify.

Minimum credit score: DARE requires a minimum 600 credit score, which is lower than the 640 floor on the Florida Hometown Heroes and FL Assist programs. Buyers whose scores fall between 600 and 639 may not qualify for the state programs but can potentially still access DARE.

Buyer contribution: You must contribute at least $2,000 of your own funds toward the purchase. This is a modest requirement and in most transactions is covered by the earnest money deposit you will already need to provide.

Debt-to-income ratio: Your back-end DTI cannot exceed 50%. This is standard for most government-backed loans.

Homebuyer education: Before receiving a DARE reservation number, you must complete homebuyer education through one of the city's approved housing counseling agencies. You must also be working with one of these agencies before you go under contract — DARE reservations cannot be issued retroactively after a purchase contract is signed.

Approved counseling agencies include Housing Education Alliance, Real Estate Education and Community Housing (R.E.A.C.H.), Solita's House, and Tampa Bay Neighborhood Housing Services.

How Much Can You Get from the DARE Program?

The maximum assistance amount is $50,000. This is structured as a second mortgage in the deferred, 0% interest format described above. The actual amount you receive depends on your specific financial situation, the purchase price of the home, and how much assistance is needed to make the transaction work. Some buyers receive the full $50,000; others receive less based on need.

Because DARE has no monthly payment, it does not count against your debt-to-income ratio the way a payment-bearing second mortgage would. This can make qualifying for your primary loan easier compared to programs like the FL HLP, which carries a $52 monthly payment.

Can You Stack the DARE Program with State DPA Programs?

Yes — and this is where DARE becomes exceptionally powerful. DARE is designed to work alongside Florida Housing Finance Corporation programs, which means buyers may be able to combine DARE with state assistance for a total package that dramatically reduces or eliminates out-of-pocket costs at closing.

For example, a buyer using the HFA Preferred conventional loan with state DPA could potentially layer DARE assistance on top. A buyer using Hometown Heroes may also qualify to stack DARE depending on specific program rules at the time of application and lender participation.

The practicality of stacking depends on whether the approved DARE lender you work with also originates the state program you want to use. Not all lenders on the DARE approved list participate in every Florida Housing program. Confirm your lender's program availability before committing.

Stacking multiple DPA sources requires careful coordination. The programs must be compatible, the lender must be approved for all programs, and the combined assistance cannot exceed your actual down payment and closing cost needs. A lender experienced with both the DARE program and Florida Housing programs is essential.

How Do You Apply for the City of Tampa DARE Program?

The DARE application process differs significantly from the state DPA process. The steps in order:

Step 1: Contact an approved housing counseling agency first. Unlike Hometown Heroes or FL Assist — which you access directly through a participating lender — DARE requires you to begin with a HUD-approved counseling agency. The agency will conduct a homebuyer education session, review your finances, prepare your application package, and submit it to the City of Tampa on your behalf.

Step 2: Receive a reservation number. Once the City reviews your application and confirms eligibility, you will receive a reservation number that holds your place in the DARE program. This must happen before you go under contract on a home. Buyers who sign a purchase contract before getting a DARE reservation cannot use the program on that transaction.

Step 3: Work with an approved DARE lender. The City maintains an updated list of approved lenders. Your primary mortgage must originate through one of these lenders. The lender handles the coordination between your first mortgage and the DARE second mortgage through closing.

Step 4: Close on your home. DARE funds are wired to the title company at closing, just like any other second mortgage. The transaction closes and both the first mortgage and DARE second appear on your title.

Because the agency review and city approval add steps to the timeline, buyers using DARE should plan for a longer approval process than a conventional DPA transaction. Beginning the counseling process several weeks before you intend to start making offers is strongly recommended.

What Happens to Your DARE Loan When You Sell or Refinance?

The DARE loan is repaid in full at the time of sale, refinance, or when the property ceases to be your primary residence. There are no interest charges and no prepayment penalties. If you sell after five years and the home has appreciated, you repay the original principal and keep all the equity gain above that amount.

This is an important distinction from forgivable programs: DARE does not forgive over time. A buyer who receives $40,000 in DARE assistance and sells seven years later still repays $40,000 at closing — not $28,000 or any prorated amount. Buyers should factor this into their long-term planning, particularly if they expect to sell within a few years.

Is the DARE Program Funded Right Now?

DARE is subject to the availability of city, state, and federal funds. Like many municipal DPA programs, DARE can exhaust its annual allocation before the end of the fiscal year. The program was placed on hold in early 2026 due to funding constraints and subsequently reopened. Availability can change. Before committing to the DARE process, confirm with one of the approved counseling agencies that reservations are currently being accepted.

Barrett Henry, REALTOR at REMAX Collective, works with first-time buyers throughout Tampa Bay and connects buyers with lenders approved for city and state DPA programs. Understanding which programs are currently funded and how to coordinate the full closing cost picture is a major part of what an experienced agent brings to a DPA transaction. Call (813) 733-7907 for a free consultation on what assistance you may qualify for right now.