Current down payment assistance guidelines, updated from one source.
The snapshot below is not typed onto this page — it is pulled from one down payment assistance guideline source and refreshed when that source changes, so Key West, FL always shows the options in force.
Of the purchase price
Up to this share of the price can come from assistance: the largest option reaches closing costs as well as the down payment, while the smaller options cover the 3.5% FHA minimum, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
Nothing to repay, ever: this option pays the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and leaves no lien behind, for buyers within the area income limit or in a qualifying category.
On the forgivable and repayable options
No income cap on the forgivable and repayable options: earn what you earn. The nothing-to-repay option is the one exception, opening at or below 140% of area median income or through a qualifying category.
Credit score to start
This is the lowest score that opens an option here — the nothing-to-repay option; the forgivable second liens start a little higher and the repayable options higher still, so a stronger score opens more choices.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Florida · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Program figures are refreshed from one guideline source and change when it changes. The nothing-to-repay option is not offered in every state; the forgivable and repayable options are second liens; no option combines with another assistance program; all are for owner-occupied primary residences. The rate in the calculator is an editable market benchmark, not a quote, and the payment shown is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is the broker, not the lender, and is not affiliated with FHA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.
What down payment assistance is — and how the options differ.
The first-time home buyer programs in Key West, FL answer the most common reason a qualified buyer does not close — the cash to close — with assistance measured on the price and shaped to the buyer’s situation.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Florida.
Assistance covers the FHA down payment
Every purchase option for a Key West buyer is sized on the price (or the lesser of price and value), not on a fixed sum: the smaller options cover the minimum investment, in whole or, on the lowest tier, in part, and the larger repayable option covers it and reaches closing costs and prepaid items too; the refinance option is sized on the balance.
Four shapes: grant, forgivable, repayable, refinance
The options differ in what they cost to carry: a nothing-to-repay option released at closing; forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien, amortized with a balloon, that reaches closing costs; and a refinance-cost option for an existing FHA loan.
Credit floors, mortgage programs, and unit counts
Two-borrower files can qualify on a blended score on the second-lien options when the higher earner has the higher score and an automated approval is in hand; every borrower still needs a score of their own, and the first lien and the unit count place the file as the options table shows.
Eligibility without a first-time-buyer rule
No option requires a first-time buyer. The nothing-to-repay option asks for one qualifying category — income at or below the area limit, a community-service occupation, a first purchase, or an underserved tract — and a homebuyer education course; the second-lien options ask for neither.
The calculator below runs this math on a price you enter. Choose an assistance option offered in Florida and add any cash of your own; it sizes the minimum investment, the assistance, what is left for closing costs, the FHA loan with its mortgage insurance, and the payment at an editable market benchmark rate.
Where Key West’s first-time and moderate-income buyers shop — and how the assistance fits.
Market data for Key West, FL frame the question every assistance file answers: at this price, how large is the minimum investment, and which option covers it?
Market context only. The renter share says how many households the program could serve; the median value says how far the minimum investment sits from a typical price; the two together describe where the program closes most files.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Key West submarkets, distinct property rules.
Across Key West’s year-round neighborhoods, workforce housing, and the homes behind the visitor economy, the same program produces different closings because prices, property types, and first liens differ block by block.
Workforce condominiums
Condominiums are often the reachable option in Key West, and the assistance follows the first lien: the building needs FHA approval, and hotel-style projects are outside the program. Median gross rent in Key West is about $2,220 a month — the payment many renters already carry.
Year-round neighborhoods
The assistance is for a primary residence, so in Key West it belongs to the year-round neighborhoods rather than the vacation stock; a buyer who lives and works in Key West uses it to close on the home they occupy. Key West itself counts a population near 26K.
County-limit homes
Resort-area prices in Key West push some first liens toward the county loan limit; above it, only the repayable options carry the assistance, and the nothing-to-repay option stops at the limit. Median household income in Key West sits near $87,037 on the latest Census estimate.
Townhome and PUD communities
In Key West’s planned communities, the assistance works the same way as on a detached home, with the association package read alongside the file. The median owner-occupied home value in Key West runs near $852,400 on the latest Census estimate.
Manufactured homes on owned land
Manufactured housing on owned land near Key West is eligible, with the option decided by the home’s width and the land owned rather than leased. About 51% of Key West’s households rent — roughly 5,478 renter households, the pool the program exists for.
USDA-eligible edges
Where a property near Key West is USDA-eligible, the USDA first lien and the second-lien options fit together, keeping cash to close near zero. On a home at Key West’s median value, the FHA minimum investment comes to about $29,800 — the figure the assistance is built to cover.
Submarket descriptions are general market context; the first lien’s approval, the option’s rules, and full underwriting decide every figure in a file.
Four ways Key West buyers put down payment assistance to work.
How Key West buyers put the program to work depends on the first lien, the property, and what the help needs to cover; these four paths cover most files.
Cover the costs of an FHA refinance
A Key West homeowner refinancing an existing FHA loan can use the refinance-cost option, a repayable second lien sized on the balance, to cover closing costs and keep the first lien inside FHA limits.
Pair the assistance with a USDA or HUD-184 mortgage
A Key West, FL buyer on a USDA or HUD-184 first lien uses the second-lien options, forgivable or repayable; the nothing-to-repay option pairs only with FHA first liens.
Cover closing costs too on the larger option
The larger option exists for the Key West, FL closing where the down payment is only half the problem: it carries the minimum investment and a further share for costs.
Buy a small multi-unit home and live in one unit
For a Key West buyer choosing a small multi-unit home, the assistance attaches to the first lien on the building, up to the option’s unit limit, with the buyer living in one of the units.
Size the assistance on a Key West price before requesting a quote.
Enter a Key West purchase price, choose an assistance option offered in Florida, and add any cash of your own. The calculator sizes the FHA minimum investment, applies the assistance to the down payment and closing costs, builds the FHA loan with its upfront and monthly mortgage insurance, and estimates the payment at an editable market benchmark rate — with housing and total ratios when you enter income.
Key West FHA payment with assistance
Starting assumptions reflect Key West’s home values; change any field and the loan, the mortgage insurance, and the payment are recalculated.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $600,000 price held below Key West’s median owner-occupied home value, where an FHA first lien is realistic, the strongest assistance option offered in Florida applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Florida (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, three very different closings.
A Key West, FL buyer can reach the closing table several ways; the difference is where the minimum investment comes from and what it costs to carry afterward.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
The structure for a Key West buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
For a Key West, FL buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. For the first lien itself, see Lendmire’s FHA loan program.
USDA and HUD-184 first liens pair with the forgivable options and the ten-year repayable option on a Key West, FL file; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
If the payment fits but the cash to close does not, down payment assistance is the structure; if the cash is there, the plain purchase; if the property is USDA-eligible, the USDA first lien with assistance for costs.
What to prepare for a Key West scenario review.
The documents a lender reads first on an assistance file.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
The assistance is the easy part; the rules around it are where Key West, FL files stall. These are the ones that most often change a file’s shape.
Use these checks to keep the Key West file clean and fundable.
Before making an offer on a Key West, FL home, confirm the option, the county loan limit, and the property’s unit count and type.
- Know the option: choose by cost to carry first, amount second.
- Confirm the category: settle which category applies before the application is signed.
- Plan for the balloon: expect a monthly payment on the second lien.
The option decides what you owe afterward
Choose the shape before the amount: the forgivable options cover the minimum investment and cost nothing to carry when the first lien stays current; the repayable option covers more and is repaid; where it is offered, a nothing-to-repay option released at closing costs nothing at all.
The eligibility category for the nothing-to-repay option
The nothing-to-repay option opens on any one of four categories — household income at or below the area limit, a community-service occupation, a first purchase, or a property in an underserved census tract — plus a homebuyer education course; the second-lien options need none of these.
The balloon on the repayable option
The repayable second lien amortizes over thirty years but comes due in the tenth year; it carries interest and a monthly payment, its own loan number, and a balloon disclosure. It is the option that reaches closing costs, and it is a loan.
Homebuyer education on the nothing-to-repay option
The nothing-to-repay option requires a HUD-approved homebuyer education or pre-purchase counseling course, online or in person; the buyer pays for it up front and the cost is credited back at closing. The second-lien options do not require it.
No stacking with other assistance
No option may be combined with another down payment assistance program in Key West, FL, and the nothing-to-repay and forgivable options do not combine with a high-balance first lien; one assistance option, one first lien, one closing.
From a Key West pre-approval to keys with the assistance in place.
Four steps take a Key West, FL assistance file from a first read to funding; the first one is the one most buyers skip.
Pick the option
Every Key West file starts with the option and the first lien; the category, the homebuyer education course and the property rules are then settled around them, in that order.
Get the mortgage approved
Lendmire packages the Key West file for the first lien first, because the assistance follows its approval; the option’s floor and the first lien’s rules both have to clear.
Clear the property
The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.
Close both loans together
Final underwriting reads the whole Key West, FL file against the first lien’s rules and the option’s; the loan funds with the assistance in place and the second lien, where there is one, recorded behind it.
A brokerage that pairs the assistance to the loan.
Pairing the right assistance to the right first lien for a Key West buyer means knowing which option the credit opens, which the property allows, and what each costs to carry — before the contract is signed.
The option, matched to the buyer
A Key West scenario is placed on the right option first — the credit tier, the first lien, and the category — and the rest of the file is then built to fit it, before anything is ordered.
The mortgage, matched to the property
A Key West file is matched to the first-lien program that carries the property — FHA everywhere, USDA or HUD-184 where they fit — and the assistance option follows that choice.
The right wholesale program
Assistance programs differ across wholesale lenders in what they offer and where; Lendmire places a Key West, FL file where its credit, its first lien, and its property read best, subject to lender program eligibility.
Trusted by first-time buyers & families alike.
Key West down payment assistance FAQs
Plain answers to the questions Key West buyers ask most about down payment assistance, before you request a review. Every file is underwritten individually; nothing here is a commitment.
Do I have to be a first-time homebuyer?
Not for any option. First-time status is one path into the nothing-to-repay option, not a requirement of the program.
Is there an income limit?
Only on the nothing-to-repay option, and only when no other category applies: household income at or below the area-median-income ceiling in the snapshot, measured where the property sits. The forgivable and repayable second-lien options carry no income limit beyond the mortgage’s own rules.
What first-time home buyer programs are available in Key West?
Down payment help in four shapes for a Key West, FL buyer: money with nothing to repay, a forgivable second lien that costs nothing while the mortgage stays current, a repayable second lien that reaches closing costs, and a refinance-cost option for an existing FHA loan. The forgivable and ten-year repayable shapes pair with an FHA, USDA, or HUD-184 mortgage; the rest pair with FHA only.
Do I have to pay the assistance back?
For a Key West buyer, the nothing-to-repay option where offered, otherwise a forgivable second lien; the options table on this page shows what each costs to carry.
What credit score do I need?
Lower than most buyers expect: the entry floor for a Key West buyer sits in the low six hundreds, with the second-lien options a step or two higher. Two-borrower files may qualify on a blended score on the second lien when the higher earner has the higher score.
What is the repayable option and when does it make sense?
It is a loan — the repayable options are the only purchase options with a payment — in exchange for covering the most. A Key West buyer chooses it for the closing-cost coverage or the high-balance pairing.
Can I buy a duplex or a fourplex with assistance?
Owner-occupied small multi-unit homes qualify, with the unit count deciding the option; a Key West, FL buyer living in one unit of a fourplex uses the nothing-to-repay option, the one purchase option that reaches four units; the second-lien options stop at two.
Which mortgages can the assistance be used with?
Government first liens only: FHA for every option, USDA and HUD-184 for the forgivable and repayable second liens (the closing-cost repayable option, the one that also reaches prepaid items, is FHA only).
Can I combine this with another assistance program?
The options do not stack with each other or with local, state, or employer programs; a Key West buyer eligible for more than one chooses the one that fits best.
How does a forgivable second lien work — the small second loan behind the mortgage?
You do not pay it as long as the first lien stays current through the period; after the period it is forgiven. A sale or refinance inside the period pays it off.
Ready to size the assistance on a Key West home? Start with the price.
A first read of a Key West assistance scenario takes a few minutes and commits you to nothing; the option, the category, and the property rules are explained before anything is ordered.
This guide covers Key West — for the statewide options, categories, and property rules, see Down Payment Assistance in Florida, part of Lendmire’s down payment assistance program.
Nearby markets in Florida: Marathon · Islamorada · Marco Island · Homestead · Naples · Kendall · Bonita Springs · Doral
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans