Can You Refinance After Using DPA? What Tampa Bay Homeowners Need to Know

You used down payment assistance to buy your Tampa Bay home — great decision. But now interest rates have dropped, or you want to tap equity, and you are wondering: can you refinance? The answer is yes, but with important caveats depending on which DPA program you used.

How Refinancing Affects DPA

When you refinance your first mortgage, the existing liens on your property must be addressed. Your DPA second mortgage is a lien. Depending on the program, refinancing may trigger full repayment of the DPA loan, require the DPA lien to subordinate (move to a lower position behind the new first mortgage), or have no impact if the DPA has already been forgiven.

Refinancing with Hometown Heroes

Hometown Heroes provides a forgivable second mortgage. If you refinance before the forgiveness period ends, you may need to repay the remaining balance. However, Florida Housing may allow subordination of the Hometown Heroes second mortgage — meaning it stays in place behind your new first mortgage without requiring repayment. Your lender must request subordination from Florida Housing, and approval is not guaranteed. Always check with Florida Housing before starting a refinance.

Refinancing with FL Assist

FL Assist is a deferred-payment second mortgage that must be repaid when you sell, refinance, or transfer the property. Refinancing triggers the repayment requirement. You would need to pay back the full $10,000 at closing of the refinance. You could potentially roll the $10,000 payoff into the new loan if you have sufficient equity.

Refinancing with HFA Preferred PLUS

HFA Preferred PLUS terms vary by lender and specific loan product. Some versions may allow subordination; others require repayment upon refinancing. Check your specific loan documents and contact your servicer before refinancing.

When Should You Refinance After DPA?

Refinancing after DPA makes financial sense when the interest rate savings exceed the DPA repayment cost, when the DPA has already been forgiven (no repayment required), when you have built enough equity to absorb the DPA payoff, or when you are doing a cash-out refinance and need the equity for a specific purpose.

Run the numbers before deciding. If your Hometown Heroes assistance was $17,500 and you save $150/month with a refinance, it takes almost 10 years to break even on the DPA repayment. If the DPA is close to being forgiven, it may be worth waiting.

How to Evaluate Your Options

Barrett Henry, REALTOR® with REMAX Collective, can connect you with lenders who understand DPA subordination and refinancing rules. With 23+ years of real estate experience, Barrett helps homeowners make informed decisions about their next moves.

Call Barrett at (813) 733-7907 to discuss your refinancing options.