What Is The Tallahassee DPA Program?

The Tallahassee Down Payment Assistance (DPA) program is a strategic initiative funded by the City of Tallahassee to promote affordable homeownership. It acts as "gap financing," bridging the difference between what a homebuyer can afford and the purchase price of a home.

Unlike traditional loans, this program offers a deferred, 0% interest loan. This means you do not make monthly payments on the assistance amount. Instead, the loan sits in the background and is eventually forgiven after 15 years of owner-occupancy.

The goal is simple: to help low-to-moderate income residents move from renting to owning by removing the largest barrier to entry—the down payment and closing costs.

Program Snapshot

  • Type: Deferred Payment Loan
  • Interest: 0% Fixed Rate
  • Max Amount: Up to 20% of Price
  • Term: 15 Years (Forgivable)
  • Location: City Limits Only

Official Program Administration

This is a City of Tallahassee housing assistance program. Day-to-day operations, counseling, and application processing are administered by the Tallahassee Lenders’ Consortium (TLC) on behalf of the City.

How The Program Works

The program provides substantial financial bridging to help qualified residents purchase affordable homes within the city limits.

Up to 20% Assistance

Qualified buyers can receive up to 20% of the purchase price to cover the down payment and closing costs. Amount is determined based on financial need.

0% Interest Rate

The assistance is structured as a second mortgage with 0% interest and no monthly payments required.

Loan Forgiveness

The loan is completely forgiven if you remain in the home as your primary residence for 15 years.

City Limits Only

Properties must be located within Tallahassee city limits. Leon County programs are separate.

Who Is This Program Perfect For?

1

First-Time Buyers

Residents who have never owned a home (or haven't in the last 3 years) and are looking to stop renting and start building equity in their own community.

2

Budget-Conscious Savers

Individuals with steady income and good credit who have struggled to save the large lump sum typically required for a 20% down payment and closing costs.

3

Long-Term Residents

Those planning to stay in Tallahassee for the long haul. Since the loan is forgiven after 15 years, it rewards commitment to the community.

Check If You Fit The Profile

Eligibility & Guidelines

  • 1

    Income Limits

    Household income must be at or below 80% AMI (Area Median Income). Income documentation (pay stubs, W-2s, tax returns) will be verified.

  • 2

    Mortgage Approval

    You must be approved for a first mortgage through a "qualified lender" that is a member of the Tallahassee Lenders’ Consortium.

  • 3

    Education Requirement

    Applicants are required to attend TLC’s homebuyer education classes and credit counseling sessions.

Purchase Price Limits (As of June 2024)

Existing Homes $238,000
New Construction $285,000

Important Repayment Triggers:

While no monthly payments are due, the loan must be repaid in full if you sell the home, refinance, cease to occupy the home as your primary residence, or in cases of bankruptcy/foreclosure before the 15-year term ends.

Home in Tallahassee with keys

Serving Communities Across Tallahassee

The City of Tallahassee Down Payment Assistance program supports homeownership within the city limits, including many of our historic and vibrant neighborhoods.

Midtown • Downtown Tallahassee • Frenchtown • Levy Park • Betton Hills • Southwood • Indianhead Acres • Myers Park • College Town • Woodland Drives • Seminole Manor • Mabry Manor

*Eligibility depends on specific property address falling within the municipal city limits.

Frequently Asked Questions

How much down payment assistance can I get in Tallahassee?
Qualified buyers can receive up to 20% of the home's purchase price. The exact amount is determined based on financial need. This assistance covers down payment and closing costs for eligible homes within the Tallahassee city limits.
Do I have to pay back the Tallahassee down payment assistance?
Repayment is not required if you live in the home for 15 years. The loan is forgiven at the end of this term. However, you must repay the full amount if you sell, refinance, or stop using the home as your primary residence before 15 years.
What are the income limits for the Tallahassee DPA program?
Applicants must have a total household income at or below 80% of the Area Median Income (AMI). Income is adjusted for family size and verified through documentation like pay stubs, W-2s, and tax returns.
Is the down payment assistance a grant or a loan?
The assistance is a 0% interest, deferred second mortgage, not a grant. It requires no monthly payments, but it is a lien on the property that must be satisfied if repayment triggers (like selling or moving out) occur within the 15-year period.
What is the maximum home price for the Tallahassee program?
As of June 2024, the maximum purchase price is $238,000 for existing homes and $285,000 for new construction. These limits are subject to change based on annual HUD guidelines.
Can I buy a home anywhere in Tallahassee with this program?
No, the property must be located specifically within the Tallahassee city limits. If the property is in Leon County but outside city limits, it does not qualify for this specific City program.
Do I need a specific lender for Tallahassee down payment assistance?
Yes, you must obtain mortgage approval through a "qualified member lender" of the Tallahassee Lenders’ Consortium (TLC). Not all lenders can process this assistance, so working with an approved partner is required.
Is homebuyer education required for the Tallahassee DPA?
Yes, all applicants must complete a homebuyer education class provided by the Tallahassee Lenders’ Consortium (TLC). You will also receive credit and financial counseling to help prepare for homeownership.
What happens if I refinance my home?
Refinancing is a trigger for repayment. If you refinance your first mortgage before the 15-year forgiveness period ends, the 0% deferred DPA loan typically becomes due and must be paid back in full at that time.
Who runs the Tallahassee Down Payment Assistance program?
The program is sponsored by the City of Tallahassee but is administered day-to-day by the Tallahassee Lenders’ Consortium (TLC). TLC handles counseling, lender coordination, and the application process on the City's behalf.
Does the program cover closing costs?
Yes, the funds can be used for both the down payment and closing costs. The total award (up to 20% of the purchase price) is a combined amount intended to bridge the affordability gap for the buyer.

Ready to Stop Renting?

See if you qualify for up to 20% down payment assistance and start your journey to homeownership today.

See If You Qualify