What to Do When Hometown Heroes Runs Out of Funding — Backup DPA Options for Tampa Bay Buyers

The Florida Hometown Heroes program is one of the most popular down payment assistance programs in the state — and also one of the fastest to run out of money. In the 2025-2026 fiscal year, the Florida Housing Finance Corporation (FHFC) committed all available Hometown Heroes funding by February 2026, months before the fiscal year ended. When that happens, buyers who had been counting on Hometown Heroes suddenly need a Plan B.

The good news: Plan B exists. Tampa Bay buyers have multiple backup DPA options that can keep a purchase on track even when Hometown Heroes is paused or waiting to reopen.

Why Does Hometown Heroes Run Out of Funding So Quickly?

Hometown Heroes is funded annually through the Florida state legislature. Each fiscal year, FHFC receives an allocation — in recent years ranging from $50 million to over $100 million — and distributes it on a first-come, first-served basis through participating lenders. When the allocation runs out, the program pauses until the new fiscal year restarts on July 1 or until supplemental funding is approved.

Demand for Hometown Heroes consistently exceeds supply. The program has helped more than 25,000 Florida homebuyers since 2022, and each year Tampa Bay accounts for a significant share of the usage because of the region's high home prices and large workforce base. In high-volume periods, lenders report that reservations fill in weeks, not months.

The pattern is predictable: funding opens July 1, runs strong through fall and winter, and may be fully committed by February or March. That leaves a 3-to-5-month gap before July when buyers in the pipeline need to look at alternatives.

What Is FL Assist and Is It Available When Hometown Heroes Is Paused?

FL Assist is Florida Housing's other major DPA program, and it operates on a different funding model than Hometown Heroes. FL Assist provides $10,000 as a 0% interest, deferred-payment second mortgage — no monthly payments, with repayment due only when you sell, refinance, or move out.

Critically, FL Assist has remained available during past Hometown Heroes pauses. FHFC confirmed in early 2026 that FL Assist and the FL HLP program were accepting new reservations even after Hometown Heroes funds were committed. This makes FL Assist the most reliable immediate backup for buyers who miss Hometown Heroes.

The tradeoff: FL Assist provides a fixed $10,000, while Hometown Heroes can deliver up to 5% of your loan amount — which on a $350,000 purchase equals $17,500. If your loan is on the smaller end of the market, FL Assist may actually be more competitive. If you are buying in the upper price ranges, Hometown Heroes offers more assistance once it reopens.

Can You Stack FL Assist with County-Level DPA?

Yes — and this is where Tampa Bay buyers can close the gap meaningfully. When Hometown Heroes is paused, stacking FL Assist with a county-level program can produce assistance that rivals or exceeds what Hometown Heroes alone would have provided.

Hillsborough County: The Hillsborough County DPA program provides up to $20,000 for income-qualified buyers purchasing in unincorporated Hillsborough County or in designated areas of Tampa. These funds come through the SHIP program and are available on their own independent funding cycle. Even when state programs are paused, Hillsborough County DPA may have open reservations.

Pinellas County: Pinellas County runs its own SHIP-funded program for buyers in eligible areas, with amounts that have recently ranged up to $20,000 for qualifying households. See our full guide on Pinellas County DPA programs for current eligibility details.

Pasco County: Pasco County also administers SHIP funds independently. Buyers in New Port Richey, Wesley Chapel, and other Pasco cities should check county availability before assuming only state programs are on the table.

Stacking FL Assist ($10,000) with a county SHIP program ($10,000-$20,000) can produce $20,000 to $30,000 in total assistance — entirely from programs that are not dependent on the Hometown Heroes funding cycle.

What Is the SHIP Program and How Does It Work as a Backup?

SHIP stands for State Housing Initiatives Partnership. It is a Florida state program that distributes funding to individual counties, which then run their own assistance programs with their own eligibility rules and amounts. Because SHIP funds are administered at the county level, they do not stop when FHFC-level programs like Hometown Heroes hit their limit.

Each county sets its own income limits, purchase price caps, and application process. Some counties operate SHIP on a continuous basis; others open application windows when new allocations arrive. In Hillsborough, the most recent SHIP funding cycle has been continuous for income-qualified buyers.

To find out whether SHIP funds are currently available in your county, your DPA-approved lender is the fastest resource — they maintain active relationships with county housing agencies and know in real time which programs have open reservations.

What Should You Do Right Now If You Were Counting on Hometown Heroes?

If your plan was to use Hometown Heroes and you have learned that funding is paused, take these steps immediately.

First, do not stop your home search. A paused Hometown Heroes program is a reason to pivot, not to pause. With FL Assist and county programs potentially available, you may be able to close on a comparable amount of assistance.

Second, contact a DPA-approved lender and ask specifically about FL Assist and county-level SHIP availability. This is a targeted, answerable question. A good lender can run the numbers on both scenarios — Hometown Heroes when it reopens versus the FL Assist + county stack available today — and show you which produces a better financial outcome.

Third, get pre-approved now. Even if you plan to wait for Hometown Heroes to reopen, having a pre-approval in hand positions you to move quickly when new funding drops on July 1 or when supplemental appropriations are announced. Buyers who are already pre-approved can get a reservation the same day funding opens. Buyers who start the process after funding opens often miss the window.

Fourth, ask your lender about the waitlist. Some lenders maintain notification lists for buyers who want to be alerted the moment Hometown Heroes reservations become available. With 23+ years of real estate experience, Barrett Henry, REALTOR® with REMAX Collective, works with approved lenders who can connect you with this kind of real-time access.

Is It Worth Waiting for Hometown Heroes to Reopen?

It depends on your timeline and the gap in assistance. If the difference between FL Assist and Hometown Heroes is $5,000 on your specific loan, and waiting means missing 3-4 months in the market, the math often favors moving forward with what is available. Tampa Bay home prices have been trending — and locking in today's price and rate may outweigh the extra assistance you would receive by waiting.

On the other hand, if Hometown Heroes would provide $15,000 more than available alternatives and the new fiscal year opens in 60 days, waiting could make financial sense. This calculation is specific to your purchase price, loan amount, and the county programs available to you.

Barrett Henry can walk you through both scenarios with real numbers. Call (813) 733-7907 or visit First Time Home Buyer Tampa Bay for more first-time buyer resources across the region.