Buyer guide · Florida
Hometown Heroes has two versions. Here's how to tell which one fits
Florida's Hometown Heroes loan comes in two versions. How TBA and Bond differ on income, purchase price, loan types and recapture tax, with county examples.
Same program, two engines
Most buyers hear "Hometown Heroes" and picture one set of rules. Behind the scenes, Florida Housing runs the program through two financing structures, and your lender may offer one or both. The down payment help is the same either way: 5% of your first mortgage, from $10,000 to $35,000, as a 0% deferred second mortgage.
What changes is who counts toward the income limit, whether there's a price cap, and whether a tax could follow you if you sell early.
Side by side
| TBA option | Bond option | |
|---|---|---|
| Whose income counts | Borrower income used on the automated loan approval | Total income of all occupants 18 and older |
| Income limit | One limit per county for any household size | Two limits: 1-2 people and 3 or more |
| Purchase price cap | None; loan limits only | Yes, by county |
| First mortgages | FHA, VA and USDA through Florida First, plus Freddie Mac HFA Advantage | Adds Fannie Mae HFA Preferred |
| Federal recapture tax | No | Possible on a sale within 9 years |
Income: the household question
This is where the choice matters most. Under TBA, the limit applies to the income your lender uses to qualify you. Under Bond, it applies to everyone 18 or older who will live in the house, on the loan or not.
Compare the 2026 limits in a few counties:
| County | TBA, any size | Bond, 1-2 people | Bond, 3+ |
|---|---|---|---|
| Miami-Dade | $204,300 | $136,200 | $156,630 |
| Hillsborough | $172,050 | $114,700 | $131,905 |
| Duval | $163,050 | $108,700 | $125,005 |
| Leon | $149,250 | $101,434 | $116,650 |
Example only: a Hialeah firefighter earns $95,000 and buys alone, but an adult brother earning $50,000 will live in the home. Under TBA, the limit test looks at the firefighter's qualifying income. Under Bond, the household total is $145,000, which is over Miami-Dade's $136,200 limit for two people. Same house, different answer.
Price: where Bond can box you in
TBA has no purchase price limit. You're bounded by loan limits instead: FHA's limit is $541,287 in most counties, and VA and Freddie Mac HFA Advantage go to $832,750.
Bond caps the price in non-targeted areas at $566,354 in most counties, with higher caps in some:
- $572,751 in Manatee and Sarasota
- $607,645 in Duval, Clay, Nassau, St. Johns and Baker
- $631,710 in Martin, St. Lucie, Okaloosa and Walton
- $697,889 in Miami-Dade, Broward and Palm Beach
- $800,166 in Collier and $1,036,005 in Monroe
Targeted areas, which are specific census tracts listed in the lender guides, have higher caps under Bond. Buying in a targeted area also waives the first-time buyer rule.
Recapture tax: the Bond footnote worth understanding
Bond loans are funded with mortgage revenue bonds, so a federal recapture tax can apply if you sell within the first nine years. Before you worry, know that it takes three things at once, per IRS Form 8828:
- You sell, or otherwise dispose of the home, within nine years. Refinancing without selling doesn't count.
- You have a gain on the sale. A loss means no tax.
- Your income in the year of sale is above the limit in the notice your lender gives you at closing.
Even then, the tax is capped at the smaller of the calculated amount or 50% of your gain. The calculation starts at 6.25% of the highest subsidized loan amount and is scaled by how long you've owned and how far your income is over the limit. Keep that closing notice with your tax records.
The same rule applies to a mortgage credit certificate. Hometown Heroes loans can pair with an MCC from a local issuer, such as the Hillsborough and Manatee housing finance authorities, which offer 20% credit rates. Florida Housing itself hasn't issued MCCs since 2020.
Which one should you ask for?
TBA usually suits buyers who:
- share the home with adults whose income would push the household over a Bond limit
- are shopping above the Bond price cap
- might sell within nine years and want to avoid any recapture question
Bond can make sense when you want the Fannie Mae HFA Preferred product, or when your lender's pricing on that day is better. Rates for both are set daily by Florida Housing, so compare on the same day.
Rules that are the same either way
- Full-time work at a Florida brick-and-mortar location of an eligible employer, or active military or veteran status
- A 640 minimum credit score, or 660 on a manual underwrite
- Homebuyer education for one occupying borrower before closing
- A 30-year fixed first mortgage, no 1% origination fee and no discount points
- Primary residence, occupied within 60 days
The program's second mortgage is repaid the same way under both options; our second mortgage comparison explains the triggers. Start by asking each lender which option it offers, then check your eligibility.
Questions we hear
What is the difference between Hometown Heroes TBA and Bond?
TBA counts the borrower income used on the loan approval and has no price cap. Bond counts all adult household income, caps the purchase price by county, adds Fannie Mae HFA Preferred and can trigger federal recapture tax.
Does Hometown Heroes have a purchase price limit?
Only under the Bond option, from $566,354 in most counties up to $1,036,005 in Monroe for non-targeted areas. TBA is limited by loan limits instead.
Will I owe recapture tax on a Hometown Heroes loan?
Only on a Bond loan, and only if you sell within nine years, have a gain and your income that year is above the limit in your closing notice. The tax is capped at half the gain.
Does my roommate's income count for Hometown Heroes?
Under Bond, the income of every occupant 18 and older counts toward the limit. Under TBA, the limit uses the borrower income on the loan approval.
Can I get a mortgage credit certificate with Hometown Heroes?
Yes, from a local issuer where one is available, such as the Hillsborough or Manatee housing finance authorities. Florida Housing no longer issues MCCs.
Keep reading
- Your first Florida homestead: the exemption, the cap and the new rules
- Florida homeowners insurance, explained for a first-time buyer
- The wind mitigation report: Florida's most useful one-page inspection
- Flood insurance and your first Florida home: what to check before you sign
- Doc stamps, intangible tax and the rest of a Florida closing statement
- Your first Florida condo: reading the building before you buy the unit
- SHIP down payment help: Florida's county-by-county second chance
- Florida's down payment second mortgages, sorted by what you'll owe later
- From pre-approval to keys: a Florida timeline for Hometown Heroes buyers
