2026 Guide
Florida Bond Loans Program Guide
Below-Market Rates and Up to $10,000 in Down Payment Assistance
A complete walkthrough of Florida Housing's tax-exempt bond program — lower interest rates, down payment help, and how everyday buyers in South Florida can qualify.
Ryan Parker
Realtor · Coldwell Banker Realty
Austin Edwards
Mortgage Expert · Ocean Blue Lending
Did you know Florida Housing offers a tax-exempt bond loan program that gives first-time homebuyers a below-market interest rate AND up to $10,000 in down payment assistance? It's one of the most powerful homebuying tools in the state — and it's wildly underused.
The Florida Bond Program (also called the Tax-Exempt Bond or First-Time Homebuyer Bond program) is run by the Florida Housing Finance Corporation (FHFC). It works by using tax-exempt bonds to fund below-market-rate mortgages for eligible buyers. The savings from the lower rate, combined with down payment assistance, can add up to $15,000 or more compared to a standard mortgage.
In this guide I'll walk through how the Bond Program works, who qualifies, what the income limits are for Palm Beach County, how to combine it with other assistance programs, and exactly what steps to take to get started. Whether you're a first-time buyer or a veteran looking to buy again, this program could save you serious money.
What's Inside
What Is the Florida Bond Program?
The Florida Bond Program uses proceeds from tax-exempt mortgage revenue bonds to provide first-time homebuyers with 30-year fixed-rate mortgages at below-market interest rates. Because the bonds are tax-exempt, lenders can pass the savings on to borrowers in the form of lower rates.
On top of the lower rate, the program offers a $10,000 down payment assistance loan as a 0% interest, deferred second mortgage. You don't pay it back monthly — it's only due when you sell, refinance, or pay off the first mortgage.
Key difference from standard loans: The Bond Program is funded in cycles, meaning there's a limited pool of money. When it runs out, you have to wait for the next cycle. This is why working with a Florida Housing-approved lender who can lock in your funds quickly is essential.
How Much You Can Save
Let's put some real numbers on this. The savings come from two places: the lower interest rate and the down payment assistance.
Interest Rate Savings
If the Bond Program rate is 0.5% to 1% below market, on a $350,000 loan that saves you:
- $50 - $100 per month on your mortgage payment
- $600 - $1,200 per year in interest costs
- $18,000 - $36,000 over the life of a 30-year loan
Down Payment Assistance
The $10,000 0% interest deferred second mortgage means:
- $10,000 less cash needed at closing
- $0 monthly payment — no extra cost to your budget
- Combined with lower rate: total first-year savings of $10,600+
Total estimated savings: $10,000 in up-front DPA + $600-$1,200/year in lower payments =
$15,000+ in the first 5 years
Income & Price Limits for 2026
Here's the thing about the Bond Program that confuses a lot of people: the income limits are based on total household income (all adults 18+ living in the home, not just the borrower). And purchase price limits vary by county.
Palm Beach County Limits (2026)
$128,500
1-2 Person Household
Total annual household income
$147,775
3+ Person Household
Total annual household income
Purchase Price Limits
The Bond Program doesn't set its own purchase price cap. Instead, the limit is governed by the maximum loan amount of the first mortgage you use (FHA, VA, USDA, or conventional). In Palm Beach County, that means:
- FHA loan limit: Up to $667,000
- Conforming loan limit: Up to $832,750
- VA loan limit: No official cap (full entitlement applies)
For most buyers in the $250k-$600k range the Bond Program works perfectly — those prices are well within these limits.
Important: The Bond Program's income limit is total household income, meaning the income of every adult living in the home counts. This is different from the Florida Housing Standard (TBA) program which only counts the borrower's credit-qualifying income. If you have a non-working spouse, the Bond Program is generous — if you have a dual-income household with high earners, the Standard TBA program might be a better fit.
First Mortgage Options Under the Bond Program
The Bond Program works with four types of first mortgages — each has its own strengths depending on your situation:
FHA Bond
Best for: Lower credit scores (580+) and smaller down payments. 3.5% down minimum. Pairs perfectly with the $10K DPA.
VA Bond
Best for: Veterans and active-duty military. $0 down payment available. The Bond rate on top of VA benefits is an incredible combination.
USDA Bond
Best for: Buyers looking in eligible suburban areas. $0 down in qualifying zones. The Bond program rate makes this even more affordable.
HFA Preferred (Conventional)
Best for: Buyers with good credit (660+) and some savings. Reduced mortgage insurance. Can be combined with 3% down.
Pro tip: The Bond Program rates change frequently and are updated daily by FHFC. Austin Edwards tracks these rates and can tell you which option gives you the best rate right now. Call him at 561-426-8238 for a free rate check.
Combining the Bond Program with Other Assistance
Here's where things get interesting. The Bond Program can be stacked with Hometown Heroes and FL Assist to create a seriously powerful financing package.
$35,000
Hometown Heroes
For eligible community workers
Up to $10,000
FL Assist
Additional down payment help
Lower Rate
Bond Program
Below-market interest rate
Real-World Example
A teacher in Palm Beach County qualifies for both Hometown Heroes ($35K) and the Bond Program (lower rate + $10K FL Assist). That's up to $45,000 in down payment and closing cost assistance plus a below-market interest rate on their mortgage. On a $350,000 home, they could walk into closing with almost nothing out of pocket.
Note: Not every combination works with every lender. The key is working with a Florida Housing-approved lender who knows how to structure a stacked deal. Austin Edwards at Ocean Blue Lending specializes in this — call him at 561-426-8238.
Eligibility Requirements
Before you get your hopes up, here's what you need to qualify:
First-Time Buyer Status
- • No homeownership in the past 3 years
- • Applies to you AND your spouse
- • Exemption for veterans (any service status)
- • Exemption for targeted area purchases
Property Requirements
- • Must be your primary residence
- • Single-family homes, condos, townhouses
- • No manufactured homes on leased land
- • Located in Florida (county must participate)
Financial Requirements
- • Total household income within limits
- • Maximum 50% debt-to-income ratio
- • Minimum credit score varies by loan type
- • Must complete homebuyer education course
Lender Requirements
- • Must use a Florida Housing-approved lender
- • Bond funds must be reserved/locked
- • Rate lock period typically 60-90 days
- • Available funding cycles may have deadlines
Don't assume you don't qualify. Veterans, buyers in targeted areas, and buyers who haven't owned in 3+ years can all use this program. Even if you think your income is too high, the limits are generous for South Florida — call Austin Edwards at 561-426-8238 for a free 10-minute check.
Step-by-Step Process
Here's exactly how the process works from start to finish:
Check eligibility
Call Austin Edwards for a free 10-minute eligibility check. He runs your income, credit, and target area against the current Bond Program requirements.
Complete homebuyer education
Take a HUD-approved homebuyer education course. It takes about 4-6 hours online and costs around $50-100. You need the certificate before closing.
Get pre-approved with Bond funds
Austin reserves your bond allocation and locks your rate. This is the critical step — bond funds are limited and released in cycles, so timing matters.
Find your home with Ryan
Once you know your budget, you start house hunting. I'll help you find a home that fits your needs in the neighborhoods that work for your price range.
Go under contract & close
We write an offer, go through inspection and appraisal, and close. The bond funds and DPA get applied at closing. Expect 45-60 days from contract to closing with Bond Program loans.
Frequently Asked Questions
How is the Bond Program different from standard FHA or conventional loans?
The Bond Program uses tax-exempt bond funding to offer a below-market interest rate. On top of that, it includes up to $10,000 in down payment assistance at 0% interest. Standard FHA or conventional loans don't have the rate advantage or the built-in DPA.
Do I have to be a first-time buyer?
Yes, you and your spouse cannot have owned a home in the past 3 years. However, there are two big exceptions: veterans (any active or non-active duty status) are exempt from this rule, and anyone buying in a Federally Designated Targeted Area is also exempt.
Can I use the Bond Program with Hometown Heroes?
Yes! The Bond Program has a dedicated version of Hometown Heroes that layers on top. The Hometown Heroes Bond version provides 5% of the first mortgage amount (from $10,000 to $35,000) as additional 0% interest deferred DPA for eligible frontline and essential workers in Palm Beach County.
What if I'm a veteran?
The Bond Program works with VA loans, and veterans are exempt from the first-time buyer requirement. You also may qualify for the Hometown Heroes program. The combination of VA Bond (often $0 down) + below-market rate + DPA is one of the most powerful financing packages available.
How fast do bond funds run out?
Funds are released in cycles, and they can be allocated within days or weeks depending on demand. Working with an approved lender who monitors the funding cycles and can lock your allocation quickly is critical. Don't wait — once funds are gone, you wait for the next cycle.
What are the credit score requirements?
They depend on the first mortgage type you choose. FHA Bond requires at least 580 (with 3.5% down). Conventional (HFA Preferred) Bond typically requires 660+. VA Bond is more flexible. Austin Edwards can tell you which option works best for your credit profile.
Ready to See If You Qualify?
The Florida Bond Program can save you thousands, but the funds are limited and move fast. Call Ryan to find your home and Austin to lock in your bond allocation.
Ryan Parker · Sales Associate · SL3571861 · Florida
Coldwell Banker Realty · 1200 N Federal Hwy, Unit 111 · Boca Raton, FL 33432
Austin Edwards · Ocean Blue Lending · 561-426-8238