Last updated: June 2026
VA loans offer $0 down, no PMI, no income limits, and the lowest rates available. Florida Hometown Heroes offers up to 5% in closing cost/down payment assistance as a 0% deferred second mortgage. The best part: eligible veterans can often use both programs together — stacking Hometown Heroes assistance on top of a VA loan to cover closing costs and the funding fee.
What Is the Florida Hometown Heroes Program?
The Florida Hometown Heroesprogram is administered by the Florida Housing Finance Corporation and launched in 2022. It provides down payment and closing cost assistance to Florida's community workforce — military members, veterans, law enforcement, firefighters, EMS, teachers, healthcare workers, childcare employees, and dozens of other qualifying occupations.
The assistance comes as a 0% interest, non-amortizing second mortgage(you make no monthly payments on it). The maximum is 5% of the first mortgage loan amount, up to $35,000. It must be repaid when you sell, refinance, or stop using the home as your primary residence. The program also covers the cost of the first mortgage's upfront fees — which means it can pay your VA funding fee.
How Do VA Loans and Hometown Heroes Compare Side by Side?
| Feature | VA Loan | Hometown Heroes |
|---|---|---|
| Eligibility | Veterans, active duty, Guard/Reserve, some surviving spouses | 50+ occupations: military, law enforcement, teachers, nurses, firefighters, etc. |
| Down Payment | $0 (0% required) | Varies by first mortgage type (FHA 3.5%, Conv 3-5%) — assistance covers it |
| Down Payment / Closing Assistance | None built-in (can negotiate seller concessions up to 4%) | Up to 5% of loan amount, max $35,000 |
| PMI / Mortgage Insurance | None — ever | Depends on first mortgage type (none if paired with VA) |
| Interest Rates | Lowest available (government-backed) | Below-market rates through FL Housing lenders |
| Income Limits | None | County median income limit (~$120K-$150K in Tampa Bay) |
| Purchase Price Limits | No limit (full entitlement) | County-specific limits (~$472K-$535K in Tampa Bay) |
| Funding Fee / Upfront Cost | 2.15% VA funding fee (first use, $0 down; exempt if disabled) | No separate fee — assistance can cover first mortgage fees |
| Property Restrictions | Must meet VA Minimum Property Requirements; primary residence only | Primary residence; first-time buyer preferred (not required for all) |
| Repayment of Assistance | N/A | Deferred — repaid at sale, refinance, or when you move out |
What Are the Biggest Differences Between VA and Hometown Heroes?
Three critical differences stand out:
- Income limits:VA loans have zero income limits — earn $300K/year and you still qualify. Hometown Heroes caps you at the county median income limit. In Hillsborough County for 2026, that's approximately $131,000 for a household. If your household income exceeds this, Hometown Heroes is off the table, but VA remains available.
- Purchase price caps:VA loans have no loan limit for veterans with full entitlement. You can buy a $900K home with $0 down if you qualify. Hometown Heroes ties to county purchase price limits — typically $472,030 to $535,000 in Tampa Bay. If you're looking at higher-priced homes, VA is your only option.
- Nature of the benefit:VA's primary benefit is structural — no down payment and no PMI built into the loan itself. Hometown Heroes is supplemental — it provides a separate assistance loan that sits on top of your first mortgage. This means VA reduces your ongoing monthly costs, while Hometown Heroes reduces your upfront cash needed.
Not Sure Which Program Fits Your Situation?
Barrett Henry (MRP) helps Tampa Bay veterans and community workers navigate both programs. Free consultation, no obligation.
Can You Use Both VA and Hometown Heroes Together?
Yes — and this is where it gets powerful.If you are a veteran or active-duty service member who also meets Hometown Heroes income and purchase price limits, you can stack the programs. Here's what that looks like in practice:
- Your VA loan provides the first mortgage: $0 down, no PMI, lowest rate available
- Your Hometown Heroes assistance (up to 5% of the loan) covers closing costs, the VA funding fee, or a rate buydown
- Combined result: you walk into your new home with potentially $0 out of pocket
On a $350,000 VA loan, Hometown Heroes can provide up to $17,500 in assistance. The VA funding fee alone is $7,525 (2.15% first use). That leaves roughly $10,000 to cover lender fees, title insurance, escrows, and prepaid items. Many buyers combining these programs close with no money out of pocket at all. The key requirement is working with a lender who is both VA-approved and a Florida Housing participating lender — not all are, so ask before you apply.
When Should You Use VA Only, Hometown Heroes Only, or Both?
Here's my straightforward advice based on helping Tampa Bay buyers navigate both programs:
Use VA loan only when:
- Your income exceeds Hometown Heroes limits
- Your purchase price exceeds county limits
- You have enough savings to cover closing costs comfortably
- You want maximum flexibility on property type and price
Use Hometown Heroes only when:
- You are not VA-eligible (teacher, nurse, firefighter, etc.)
- You need down payment assistance for an FHA or conventional loan
- Your occupation qualifies but you have no military service
Stack both programs when:
- You are VA-eligible AND meet income/price limits
- You want to minimize or eliminate cash at closing
- You want the VA funding fee covered by assistance rather than rolled into the loan
- You are buying your first home and want maximum financial advantage
I'm Barrett Henry — a Military Relocation Professional (MRP) and Broker Associate with REMAX Collective. With 23+ years of real estate experience, I help Tampa Bay veterans and community heroes understand which programs they qualify for and how to maximize their benefits. Not every lender participates in both programs, so having an agent who knows which lenders to call makes a real difference. Learn more about VA loan eligibility or explore the official Florida Housing Hometown Heroes page for the latest income limits and eligible occupations.
Barrett Henry, MRP
Broker Associate, REMAX Collective
23+ years of real estate experience helping Tampa Bay veterans navigate VA home loans.
Learn more about Barrett →Related VA Loan Guides
Frequently Asked Questions
Can you combine a VA loan with Florida Hometown Heroes assistance?
Yes, in many cases you can. The Florida Hometown Heroes program offers down payment and closing cost assistance that can be layered on top of a VA loan. Since VA loans already require $0 down, the Hometown Heroes assistance (up to 5% of the first mortgage) can be applied toward closing costs, the VA funding fee, or rate buydowns — reducing your cash needed at closing even further.
Who qualifies for Florida Hometown Heroes but not a VA loan?
Hometown Heroes is available to a much broader group: teachers, nurses, healthcare workers, law enforcement, firefighters, EMS, childcare workers, and other community workers — not just military. If you are not a veteran or active-duty service member, Hometown Heroes may be your best path to down payment assistance. The full list of eligible occupations is on the Florida Housing Finance Corporation website.
Does Hometown Heroes have income limits that VA loans do not?
Yes. Hometown Heroes caps household income at the county median income limit (varies by county, but typically around $120,000-$150,000 in Tampa Bay counties for 2026). VA loans have no income limit whatsoever — if you can qualify based on debt-to-income ratio and residual income, there is no cap on how much you can earn.
Is the Hometown Heroes assistance a grant or a loan?
It is a 0% interest, non-amortizing second mortgage (deferred loan) — not a grant. You do not make monthly payments on it, but it must be repaid when you sell, refinance, or no longer occupy the home as your primary residence. The maximum assistance is 5% of the first mortgage loan amount, up to $35,000.
Which program has better interest rates — VA or Hometown Heroes?
VA loans typically offer the lowest available rates because they are government-backed with a partial guarantee. Hometown Heroes loans are originated through Florida Housing's participating lenders at competitive below-market rates, but they are generally slightly higher than VA rates. However, combining both programs can offset the rate difference through reduced closing costs.