FL HFA Preferred & Advantage PLUS — Conventional Loan DPA Programs

What Are the FL HFA Preferred and Advantage PLUS Programs?

FL HFA Preferred and FL HFA Advantage are conventional first mortgage loan products offered exclusively through Florida Housing Finance Corporation. They are designed to give Florida homebuyers access to below-market interest rates, reduced private mortgage insurance (PMI), and built-in down payment assistance — all in a single package.

FL HFA Preferred is backed by Fannie Mae. FL HFA Advantage is backed by Freddie Mac. Both work similarly and offer the same core benefit: a competitive first mortgage paired with a PLUS grant that provides 3-5% of the loan amount as a forgivable second mortgage for down payment and closing costs.

According to Florida Housing, these programs are among their most popular offerings because they combine a strong first mortgage with meaningful DPA — and they are available to both first-time and repeat buyers, which makes them unusually flexible.

How Does the PLUS Forgivable Grant Work?

The “PLUS” in FL HFA Preferred PLUS and FL HFA Advantage PLUS refers to a forgivable second mortgage that provides 3% to 5% of the first mortgage loan amount. Here is how it breaks down:

• Grant amount: 3-5% of loan — On a $300,000 mortgage, that means $9,000 to $15,000 in assistance.
• 0% interest — No interest accrues on the grant.
• Forgivable — If you remain in the home as your primary residence for the required period, the entire grant is forgiven. You owe nothing.
• No monthly payments — The grant is deferred and non-amortizing while you live in the home.
• Due on sale or refinance — If you sell, refinance, or move out before the forgiveness period ends, the remaining balance must be repaid.

The PLUS grant is what makes these programs stand out from standard conventional loans. You get a competitive interest rate, lower PMI, and free money toward your down payment — all from a single lender in a single closing.

What About Interest Rates and PMI?

One of the biggest advantages of FL HFA Preferred and Advantage is the pricing. Because these products are offered through Florida Housing with negotiated terms from Fannie Mae and Freddie Mac, borrowers typically receive:

• Below-market interest rates — Rates are often 0.25% to 0.75% lower than what you would find on the open market for a comparable conventional loan. Over 30 years, that savings adds up to thousands of dollars.
• Reduced PMI — Private mortgage insurance on these products is discounted compared to standard conventional loans. On some products, PMI may be eliminated entirely, depending on your loan-to-value ratio and credit score.
• No first-time buyer requirement — Unlike FHA loans paired with Hometown Heroes, these conventional products allow repeat buyers to access both the below-market rate and the PLUS grant (with some restrictions).

The combination of a lower rate, lower PMI, and a forgivable grant often results in a monthly payment that is lower than renting a comparable property in Tampa Bay. Your participating lender will run a side-by-side comparison during pre-approval.

Who Is Eligible for FL HFA Preferred and Advantage PLUS?

Eligibility is broader than many buyers expect. Key requirements include:

• First-time and repeat buyers — Both are eligible, though repeat buyers may face additional restrictions depending on the specific product and county. Your lender will confirm.
• Income limits — Household income must fall at or below the Florida Housing county-specific limit. These limits are updated periodically and tend to be generous enough to include moderate-income families.
• Purchase-price limits — The home must fall within the maximum purchase price for your county.
• Minimum credit score — Typically 640 or higher for conventional products, though some flexibility may exist. Higher credit scores may qualify for better rates and lower PMI.
• Participating lender required — You must originate the loan through a Florida Housing-approved lender.
• Primary residence only — The property must be your primary home. Second homes and investment properties do not qualify.

If you are unsure whether you qualify, a quick call to a participating lender or to Barrett Henry at (813) 733-7907 can give you a clear answer in minutes.

Can You Stack HFA Preferred PLUS with Florida Assist?

Yes — and this is the strategy that maximizes your total assistance. When you combine FL HFA Preferred PLUS (or Advantage PLUS) with Florida Assist, you receive two layers of help:

• PLUS grant: 3-5% of loan amount (forgivable)
• Florida Assist: $10,000 at 0% interest (deferred, due on sale/refi)

Here is a real-world example for a $350,000 home purchase in Hillsborough County:

With $24,000 in combined assistance, many buyers can purchase with little to no cash out of pocket. The 3% down payment on a $350,000 home is $10,500 — well within the combined DPA. The remaining $13,500 covers closing costs and prepaids. Amounts and terms may change — verify current eligibility with your participating lender.

How Do You Apply for FL HFA Preferred or Advantage PLUS?

1. Find a participating lender. Only Florida Housing-approved lenders can originate these loans. Call Barrett Henry at (813) 733-7907 for a referral to a lender in Tampa Bay who specializes in these programs.
2. Get pre-approved. Your lender will evaluate your income, credit score, and debt-to-income ratio to determine which product (HFA Preferred or HFA Advantage) offers the best terms, and whether you can add the PLUS grant and Florida Assist.
3. Choose your DPA stack. Decide whether to use the PLUS grant alone or combine it with Florida Assist for maximum assistance. Your lender will show you a side-by-side comparison.
4. Find your home.Work with a REALTOR experienced in DPA transactions to find a home within your county's purchase-price limits.
5. Close and receive your assistance. At closing, the PLUS grant and Florida Assist funds are applied to your down payment and closing costs. You walk away with keys and minimal out-of-pocket expense.

Processing typically takes 30 to 45 days from pre-approval to closing. These programs are funded on a continuous basis through Florida Housing, but interest rates and grant percentages can change with market conditions. Lock in your rate as soon as you are pre-approved.