One of the biggest questions we hear from first-time buyers: “How do I come up with the down payment?”
It’s a fair concern. Even with today’s accessible financing options, saving thousands of dollars for a down payment can feel overwhelming, especially when you’re already paying rent.
Here’s what a lot of buyers don’t realize: you may not need to save as much as you think. Several down payment assistance programs serve Polk County families, and some can cover your entire down payment, closing costs, or both.
At Southern Homes, we’ve helped hundreds of families navigate these programs over our 30+ years in Central Florida. Let’s walk through what’s actually available right now in Polk County.
SHIP Polk County: Up to $30,000 in Assistance
The State Housing Initiatives Partnership (SHIP) program through Polk County Real Estate Services offers some of the most generous assistance available.
How It Works: SHIP provides up to $30,000 toward your down payment and closing costs. On a $350,000 home purchase (which requires $12,250 down with FHA), SHIP can cover your entire down payment plus additional closing costs, depending on your income tier.
The best part? It’s 0% interest, and if you live in the home for five years, the down payment assistance is completely forgiven. Closing costs are an outright grant you never have to repay.
Who Qualifies:
- Very low income: up to $41,650 (single) or $51,250 (family of four)
- Low income: up to $57,400 (single) or $82,000 (family of four)
- Moderate income: up to $86,160 (single) or $123,000 (family of four)
- Must live or work in Polk County for 12+ months
- Minimum 640 credit score (driven by your first mortgage type)
- Excludes Lakeland and Winter Haven city limits
When to Apply: SHIP operates on an annual funding cycle and is first-come, first-ready. Don’t wait until you find a home. Start the application process early so you’re ready when the right house comes along.
Florida Bond (Florida Assist): $10,000 Statewide Program
The Florida Housing Finance Corporation offers the Florida Assist program, commonly called “Florida Bond,” available year-round through approved lenders (including our preferred lenders at Southern Homes).
How It Works: You receive $10,000 as a second mortgage at 0% interest to help with your down payment and closing costs. On a $350,000 home, this covers most of your FHA down payment requirement. You’d need to bring the remaining $2,250, or you can apply the $10,000 toward closing costs instead.
The second mortgage is due when you sell, refinance, or move out of the home. There are no monthly payments on it.
Who Qualifies:
- Income limits: up to $62,500 (1-2 people) or $71,875 (3+ people) in non-targeted areas
- Higher limits in targeted areas
- Must be a first-time homebuyer (or haven’t owned a home in 3 years)
- Minimum 640 credit score
- Your first mortgage is at market rate
When to Apply: Available year-round through approved lenders.
USDA Section 502 Direct: 100% Financing in Rural Areas
If you’re looking at properties in rural areas of Polk County, the USDA Section 502 Direct loan offers 100% financing with no down payment required.
How It Works: The U.S. Department of Agriculture provides the entire loan directly (not through a bank). You can finance the full purchase price, and in some cases, closing costs can be rolled into the loan if the appraisal supports it.
Current rates are around 5.00% fixed (as of April 2026), which is competitive with conventional financing.
Who Qualifies:
- Low income: up to $66,650 (1-4 people) or $87,950 (5-8 people)
- Very low income: up to $41,650 (1-4 people) or $55,000 (5-8 people)
- All household income is counted
- Minimum 620 credit score
- Property must be in an eligible rural area
Critical Note: Not all areas of Polk County qualify. Verify property eligibility BEFORE you start shopping. Many of our Southern Homes communities may be outside USDA-eligible zones, so check first.
Chenoa Fund: Fast, Flexible FHA Assistance
The Chenoa Fund through CBC Mortgage Agency is available nationwide through approved lenders and offers some of the most flexible terms.
How It Works: Two options available:
- 3.5% assistance ($12,250 on $350K home) covers your full FHA down payment
- 5% assistance ($17,500) covers down payment plus some closing costs
The assistance comes as a second mortgage. If you make 36 consecutive on-time mortgage payments (3 years), the second mortgage is forgiven completely.
Who Qualifies:
- Repayable option: No income limit
- Forgivable option: up to approximately $95,795 (family of four)
- Not limited to first-time buyers
- Minimum 600 credit score
- Second mortgage interest rate is your first mortgage rate plus 1%
When to Apply: Available year-round with no annual funding cycle. This program moves fast because there’s no waiting for annual allocations.
Which Program Is Right for You?
The best program depends on your income, credit score, location, and timeline:
- Highest income limits: Chenoa Fund (repayable option has no cap)
- Most generous assistance: SHIP Polk County (up to $30,000)
- No down payment needed: USDA Section 502 (rural areas only)
- Available year-round: Florida Bond and Chenoa Fund
- Lowest credit score: Chenoa Fund (600 minimum)
Ready to Explore Your Options?
At Southern Homes, our New Home Specialists and our preferred lenders are ready to work with you to determine which down payment assistance programs you qualify for and how they work with your home purchase. All of our preferred lenders are approved for Florida Bond and Chenoa Fund programs, and they’re experienced with SHIP and USDA applications. Contact us for more information.
Note: Program details, income limits, and interest rates are subject to change. All figures should be verified with the specific program or an approved lender before making decisions.