We provide homebuyers with programs to help cover down payment and closing costs.
Coming up with the down payment can often be an obstacle for many would-be homeowners. A down payment is the portion of a home’s purchase price paid upfront, rather than the loan you borrow for the mortgage.
The average down payment for a first-time homebuyer can be as high as 10% of the purchase price, but you don’t have to rely solely on savings to buy a home. Down payment assistance (DPA) programs provide homebuyers with loans or grants to help cover the down payment and closing costs.
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City of Tallahassee DPA
The Tallahassee Lenders’ Consortium processes the DPA provided by the City of Tallahassee.
- DPA is a loan that covers the down payment and closing costs for homes purchased within the city limits.
- DPA is forgiven if the homebuyer remains in the home for 15 years.
- The homebuyer is required to contribute $500 towards the purchase of the home
- The buyer must have approximately $2,000 available for other pre-purchase expenses, such as the binder deposit (good faith estimate), home inspection, appraisal, and homeowner’s insurance.
If you meet the eligibility guidelines, you could qualify for up to 20% of the purchase price of the home for down payment and closing cost assistance. The homeownership specialist can determine whether you meet these guidelines.
The down payment is secured by a second or third mortgage loan at 0% interest, with no required payments. However, if any of the following events occur – sale, refinance, no longer occupying the home as a primary residence, abandonment, bankruptcy, or foreclosure – the loan must be paid back in full.
Housing and Urban Development (HUD) sets annual limits for earned income and home purchase prices. As of June 15, 2024, the highest purchase price for an existing home is $238,000, while for new home constructions, the limit is $285,000. To determine if you are eligible, refer to the household income chart below.
To apply for the City DPA program you must first obtain loan approval from an approved member lender.
- Once you have received loan approval, click on this City DPA application link to begin the process.
- After registering, click on “To Apply for Down Payment Assistance” and follow the instructions.
If you need further assistance or have any questions regarding the online application, please call 850.222-6609 or via email at info@tallahasseelenders.org. Voicemail and email messages will be answered no later than the close of business the next day.
Leon County Government DPA
The Tallahassee Lenders’ Consortium processes the down payment assistance (DPA) provided by the Leon County Government. The DPA is a loan that covers the down payment and closing costs for homes purchased in Leon County.
DPA in an amount not to exceed the amounts identified below, based on the income category, may be used to pay the buyer’s down payment, and closing costs. Funds for down payment and/or other closing costs (e.g. appraisal, inspections, etc.) in an amount not less than $500 must come from the buyer’s funds. In order to qualify for Leon County DPA, the first mortgage loan must have a fixed interest rate and be fully amortized over the term of the loan, which is not to exceed thirty (30) years without prior written approval from the Leon County Housing Services Division. First mortgage loans with balloon payments are not acceptable.
The maximum amount of the DPA is as follows:
| Income Category | Existing Homes not Rehabilitated OR not in a CLT | CLT Homes | Newly Constructed for Rehabilitated Homes |
| Very Low | $10,000 | $20,000 | $25,000 |
| Low | $10,000 | $20,000 | $25,000 |
| Moderate | $7,500 | N/A | $20,000 |
Household Income Limits: The total gross annual income of all household members may not exceed one hundred and twenty percent (120%) of the area median income (AMI) adjusted for household size. The contractor will be responsible for determining income eligibility according to State Housing Initiatives Partnership Program (SHIP) guidelines and verification of all household income, including income from assets. These income limits are based on area median income figures determined annually by the Florida Housing Finance Corporation. Current numbers are published at: https://www.floridahousing.org/owners-and-managers/compliance/income-limits.
The maximum purchase price in Leon County is $510,939 for new and existing homes.
To apply for the Leon County DPA program, you must first obtain loan approval from a member lender. Once you have received loan approval, you can click on the following link to access the County DPA Application portal. After registering, click Start Application in the Down Payment Assistance section and follow the instructions.
If you need further assistance or have any questions regarding the online application, please call 850.222-6609 or via email at info@tallahasseelenders.org. Voicemail and email messages will be answered no later than the close of business the next day.