FL HLP Second Mortgage — Florida's DPA With a Monthly Payment (2026 Guide)

Most Tampa Bay buyers using Florida Housing Finance Corporation programs know about FL Assist — the $10,000 deferred second mortgage with zero interest and no monthly payment. But there's a second DPA option in the Florida Housing portfolio that far fewer buyers understand: the Florida Homeownership Loan Program, or FL HLP. The FL HLP provides up to $10,000 in down payment and closing cost assistance, but unlike FL Assist, it carries a 3% interest rate and a monthly payment. If a lender offers you the FL HLP instead of FL Assist — or if you're wondering why one program has a payment and the other doesn't — this guide explains exactly what you're looking at and what it means for your budget.

What Is the FL HLP Second Mortgage?

The Florida Homeownership Loan Program (FL HLP) is a second mortgage offered through Florida Housing Finance Corporation (FHFC) that pairs with an FHFC first mortgage. It provides up to $10,000 toward your down payment and closing costs as a partially amortizing loan at 3% interest. You make a monthly payment on the FL HLP throughout the life of your first mortgage — typically around $50 to $70 per month depending on the loan amount and term — with any remaining unpaid principal deferred until you sell the home, refinance, or pay off the first mortgage.

Like FL Assist, the FL HLP requires that you work with an FHFC-approved participating lender, meet income limits for your county, complete a HUD-approved homebuyer education course, use the home as your primary residence, and qualify as a first-time homebuyer (no primary residence ownership in the past three years, with exceptions for active-duty military and veterans under certain programs).

The FL HLP pairs with the same first mortgage products as FL Assist: FHA, VA, USDA, and FHFC conventional loans including HFA Preferred and HFA Advantage. Your lender determines which DPA second mortgage is available based on program funding levels and your specific loan type at the time you lock.

How Does FL HLP Compare to FL Assist?

The most important difference between FL HLP and FL Assist is monthly payment obligation.

FL Assist provides $10,000 at 0% interest with no monthly payment. The entire balance is deferred until you sell, refinance, or move out. Nothing comes out of your monthly budget. FL Assist does not count against your debt-to-income ratio for the monthly payment portion because there is no monthly payment.

FL HLP provides up to $10,000 at 3% interest with a small monthly payment — typically in the $50 to $70 range. That monthly payment does count toward your debt-to-income (DTI) ratio during underwriting, meaning it slightly reduces how much house you can qualify for. The remaining balance after amortizing payments is deferred until sale or payoff.

Both programs are deferred in the sense that you don't need to pay them off in full while you live in the home — but FL Assist is entirely deferred, while FL HLP requires ongoing payments on the amortizing portion. For most buyers, FL Assist is the first choice when available precisely because it has no monthly payment and no DTI impact.

Does the FL HLP Monthly Payment Affect My DTI?

Yes, and this is one of the most practical things Tampa Bay buyers need to understand before accepting FL HLP as their DPA option. Lenders calculate your back-end debt-to-income ratio by adding up all your monthly debt obligations — your proposed housing payment, auto loans, student loans, credit card minimums, and any other recurring debts — and dividing by your gross monthly income.

A $70/month FL HLP payment isn't large on its own. But in a tight DTI situation, it can mean the difference between qualifying and not qualifying. Most FHFC programs require a maximum DTI of 50% depending on loan type and credit profile. If you're already at or near that ceiling with your housing costs and existing debts, the FL HLP's monthly payment could disqualify you for the purchase price you're targeting.

This is one reason understanding your DTI before choosing a DPA program matters. If FL Assist is available and you're DTI-sensitive, it's almost always the better choice. If you're well within DTI limits, the FL HLP's monthly payment has less impact and may be worth accepting when FL Assist isn't available.

When Would a Tampa Bay Buyer End Up With FL HLP Instead of FL Assist?

FL Assist and FL HLP are separate programs with separate funding allocations, and their availability doesn't always move in tandem. The most common scenario in which a buyer ends up with FL HLP is when FL Assist funding has been exhausted for the current program cycle but FL HLP funding remains available.

Florida Hometown Heroes, FL Assist, and FL HLP all run on first-come, first-served allocation systems. During peak homebuying seasons — or after a funding relaunch like the July 13, 2026 Florida Hometown Heroes relaunch with $50 million in new money — programs can exhaust their allocations within weeks. When that happens with FL Assist specifically, participating lenders may offer FL HLP as an available alternative to keep your transaction moving forward.

In some cases, the loan type or your credit profile may also make one program more accessible than the other at a particular lender. Your REALTOR® and lender should work together to identify the current availability of all FHFC DPA options before you go under contract, not after. Knowing which programs are funded when you're ready to make an offer helps you plan your budget accurately and avoid surprises at the closing table.

Can You Stack the FL HLP With Other DPA Programs?

Yes, within program rules. The FL HLP is designed to work alongside FHFC first mortgage products, and in some cases buyers can layer additional assistance on top of it. Florida Hometown Heroes, for example, can be combined with FL Assist or FL HLP as the second mortgage in a three-layer stack. Whether a specific combination is allowed depends on the loan type, lender guidelines, and current program rules.

If you're stacking multiple DPA programs, the FL HLP monthly payment affects your total housing cost calculation and must be included in your DTI throughout underwriting. Make sure your lender models the full stack — first mortgage payment, FL HLP payment, taxes, insurance, HOA if applicable — before committing to a purchase price.

County-level SHIP programs in Hillsborough, Pasco, Pinellas, and surrounding counties may also layer with FL HLP if program guidelines allow it. The key is working with a lender who actively manages multiple FHFC and county program allocations and can tell you what's available on the day you're ready to lock.

How Do You Apply for the FL HLP in Tampa Bay?

The FL HLP is not applied for separately. It's offered as part of the closing package when you obtain an FHFC first mortgage through a participating lender. You do not contact Florida Housing directly to apply. Instead, you work with an FHFC-approved lender who will present you with the DPA options available at the time of your application and rate lock.

Steps to access FL HLP in the Tampa Bay area:

1. Get pre-approved with an FHFC-approved lender. Ask specifically which DPA second mortgage options — FL Assist, FL HLP, or both — are currently funded and available for your loan type.
2. Complete a HUD-approved homebuyer education course. This is required for all FHFC DPA programs. Online courses are available and typically take four to eight hours.
3. Go under contract on a qualifying home. The property must be your primary residence and fall within FHFC purchase price limits for your county.
4. Lock your rate and confirm your DPA. Your lender confirms which DPA option is available at lock time and includes it in the closing disclosure.

Barrett Henry, REALTOR® with REMAX Collective, has helped Tampa Bay buyers navigate FHFC programs including FL HLP and FL Assist for over 23 years. If you want to understand which DPA option makes sense for your budget and your purchase price, call or text Barrett at (813) 733-7907. First-time buyers looking for a deeper overview of all available programs can also visit firsttimehomebuyertb.com for guides on the full range of Tampa Bay homebuyer assistance options.

The difference between a DPA program with a payment and one without may seem small on paper. But in a monthly budget where every dollar matters — and in a loan file where DTI is the deciding factor — knowing the details before you choose can mean the difference between a smooth closing and an unexpected qualification problem.