Hometown Heroes: Down‑Payment Help in St. Augustine

Buying in St. Augustine but worried about the down payment? You are not alone. Home prices across St. Johns County have outpaced local wages, which makes saving for upfront costs tough even for steady earners and those who serve our community. This guide shows you how to tap Florida’s Hometown Heroes program and local St. Johns County resources so you can buy sooner with confidence. Let’s dive in.

Florida Hometown Heroes: What it offers

Florida’s Hometown Heroes program can cover up to 5% of your first mortgage with a minimum of $10,000 and a maximum of $35,000 to use toward down payment and closing costs. Assistance is a 0% interest, 30‑year deferred second mortgage that becomes due if you sell, refinance, transfer the deed, or stop living in the home as your primary residence. See program details on Florida Housing’s site.

To qualify, you must work full time for a Florida employer, meet the program’s income limit for St. Johns County, and use a participating lender. The program commonly expects a minimum credit score around 640, depending on loan type and lender. Florida Housing also notes there is no fee to apply and warns buyers to avoid scammers. Review the warning and tips on Florida Housing’s Hometown Heroes page.

St. Johns County SHIP: Local down payment help

St. Johns County’s SHIP program offers purchase assistance for first‑time buyers, subject to funding. The county lists a purchase price cap of $400,000 and awards up to $100,000, issued as a deferred second mortgage with a 15‑year term and prorated forgiveness starting in year six. SHIP generally requires HUD‑certified homebuyer education, a minimum credit score guideline around 640, and proof that you have lived or worked in St. Johns County for 12 months. Review current terms on the St. Johns County SHIP page.

Education is provided locally through the county’s Housing & Financial Counseling Program. Connect with a counselor to get started and confirm whether SHIP funding is open or waitlisted. Learn more about counseling on the county’s program page.

Other options you can combine

• Florida Housing down payment products: FL Assist and other second‑mortgage options can sometimes be paired with your Florida Housing first mortgage. Check availability with a participating lender on the Florida Housing homebuyer overview page.
• VA loans: Eligible service members, veterans, and some surviving spouses may qualify for no‑down‑payment purchase loans. Explore eligibility on the VA purchase loan page.
• USDA loans: Some areas near St. Augustine may qualify for low or no down payment through USDA’s Single Family programs, based on property location and household income. See the USDA Guaranteed Loan program overview.
• Local nonprofit paths: Habitat for Humanity of St. Johns and St. Johns Housing Partnership sometimes offer affordable for‑sale homes or partner with public funds. Learn about Habitat St. Johns’ homeownership program and the work of the St. Johns Housing Partnership.

Who qualifies in St. Johns County

• Income limits: Hometown Heroes uses a county income cap tied to area median income. For 2025, reporting cites a St. Johns County cap near $153,750 for eligible households, but always verify current limits with Florida Housing or your lender. See local coverage on News4Jax.
• Occupation and residency: Hometown Heroes requires full‑time work for a Florida employer and eligible occupations or military/veteran status. SHIP requires you to live or work in St. Johns County for 12 months and file homestead after closing.
• First‑time buyer rules: SHIP and many HFA programs define first‑time as no ownership in the past three years. Some exceptions may apply for veterans or certain areas.
• Credit and loan type: Many programs reference 640 as a common minimum score guideline. You must use a participating lender and a compatible first mortgage type.
• Purchase price caps: SHIP limits DPA purchases to $400,000. Florida Housing first‑mortgage limits also apply and vary by program.

How the assistance works

Most assistance arrives as a deferred second mortgage. You do not make monthly payments on the second, but you must repay it if you sell, refinance, transfer the deed, or move out. Hometown Heroes and FL Assist seconds are typically not forgivable. SHIP’s second includes partial forgiveness over time according to county rules. Confirm the exact terms with your lender and the county. Program mechanics are outlined on Florida Housing’s Hometown Heroes page and the St. Johns County SHIP page.

Step‑by‑step: Apply in St. Augustine

1. Start with HUD‑certified counseling. Contact the St. Johns County Housing & Financial Counseling Program to review your budget and earn your education certificate. Find details on the county counseling page.

2. Confirm eligibility early. For Hometown Heroes, check your occupation and the St. Johns income cap. For SHIP, confirm the purchase price limit and whether funds are currently available.

3. Choose a participating lender and get pre‑approved. Florida Housing programs require approved lenders. Use the resources on the Florida Housing homebuyer overview page and ask which DPA products they offer.

4. Complete education and gather documents. Have your ID, pay stubs, W‑2s or tax returns, bank statements, employment verification, any occupational license or proof of service, and proof of local work/residency when needed.

5. Submit applications and coordinate stacking. Your lender and the county will align the first mortgage with any second mortgages, including SHIP or Florida Housing assistance. Funds are issued at closing.

6. Know your post‑closing obligations. Keep records, maintain primary occupancy, and understand forgiveness or repayment triggers for each second mortgage.

Funding can pause during the year. If SHIP is waitlisted, connect with a counselor to plan ahead and get on the appropriate list.

Avoid scams and common pitfalls

• Do not pay an upfront fee to apply for Hometown Heroes or other Florida Housing programs. Review the official warning on Florida Housing’s Hometown Heroes page.
• Work only with Florida Housing participating lenders and county housing counselors.
• Confirm stacking rules before you go under contract. Not every lender offers every program, and some combinations have strict guidelines.
• Verify limits and availability close to your application date. Income caps, loan limits, and purchase price limits can change.

Ready to get a plan?

If you serve our community or are moving here to do so, you deserve a clear, disciplined path to homeownership. As a veteran‑led advisor, I help you line up the right programs, the right lender, and the right strategy for St. Johns County. When you are ready, let’s build your plan together with Traci Crawford.

FAQs

How does Florida Hometown Heroes down payment assistance work in St. Augustine?

• It provides 5% of your first mortgage amount, minimum $10,000 and maximum $35,000, as a 0% deferred second mortgage that you repay if you sell, refinance, transfer the deed, or stop occupying the home.

What is the St. Johns County SHIP down payment program?

• SHIP offers local purchase assistance up to $100,000 for eligible first‑time buyers within a $400,000 purchase price cap, with HUD‑certified counseling required and partial forgiveness beginning in year six of a 15‑year term.

Can you combine SHIP with Hometown Heroes in St. Augustine?

• Often yes, but stacking depends on program rules and lender participation, so coordinate early with your participating lender and the county housing office to confirm what is allowed.

What credit score is needed for Hometown Heroes or SHIP?

• Many guidelines reference a minimum around 640, but exact requirements depend on the loan product and lender, so get an early review through a HUD‑certified counselor or approved lender.

Is there a fee to apply for Florida Hometown Heroes?

• No, Florida Housing states there is no application fee and warns buyers to avoid solicitations that ask for upfront payments.

How long does a down payment assistance purchase take in St. Augustine?

• Expect time for counseling and pre‑approval, then offer and underwriting; allow several weeks for DPA approvals and plan ahead if SHIP funding is paused or waitlisted.