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Qualified first-time homebuyers in Palm Beach County can receive up to $100,000 in down payment and closing cost assistance through the HOME First-Time Homebuyer Program. This initiative, funded by a $3 million grant from the U.S. Department of Housing and Urban Development (HUD), is designed to help bridge the affordability gap in a market where the median list price reached $499,000 in June 2026. The assistance is provided as a deferred-payment loan, meaning it does not need to be repaid until the home is sold, refinanced, or is no longer the primary residence.
How does the Palm Beach County HOME Program work? The program provides financial assistance to eligible buyers for costs associated with purchasing a home. The funds can be applied to a down payment, closing costs, or even the acquisition of a new construction property. A key requirement is that the purchased home must serve as the borrower's primary residence. This is not a grant for investment properties or second homes. The assistance is structured as a second mortgage with a zero interest rate, which is forgiven after a certain period, typically 15 to 30 years, if all program conditions are met.
Who is eligible for the down payment assistance? Eligibility is based on several factors, including income, credit history, and homebuyer education. Applicants must be first-time homebuyers, which is defined as someone who has not owned a home in the past three years. Their household income cannot exceed 80% of the Area Median Income (AMI) for Palm Beach County. For a family of four in 2026, this translates to an annual income of approximately $75,000. Applicants are also required to complete a HUD-approved homebuyer education course and secure a first mortgage loan from a participating lender. Credit score requirements are typically aligned with standard FHA loan guidelines.
| Household Size | Maximum Annual Income (80% AMI, 2026 Estimate) |
|---|---|
| 1 Person | $52,550 |
| 2 People | $60,050 |
| 3 People | $67,550 |
| 4 People | $75,050 |
| Source: Palm Beach County Department of Housing and Economic Development |
What is the application process for the HOME Program? The application process is managed by the Palm Beach County Department of Housing and Economic Development. Interested buyers should not contact the county directly initially. The first step is to connect with a participating lender who is approved to work with the program. This lender will pre-qualify you for a first mortgage and guide you through the simultaneous application for the down payment assistance. The program operates on a first-come, first-served basis until the allocated funds are exhausted. Given the high demand for such programs, acting promptly after confirming eligibility is crucial.
What are the key benefits and considerations? The primary benefit is clear: significant upfront capital that makes homeownership attainable. This can help buyers avoid paying for private mortgage insurance (PMI) if the combined assistance and primary loan cover 20% or more of the home's value. However, buyers must understand the long-term obligations. The deferred-payment loan is secured by a lien on the property. If the home is sold or refinanced before the forgiveness period ends, the loan may become due, often with a share of the home's appreciation owed to the program.
Prospective applicants should carefully weigh this opportunity. While the assistance is substantial, it is targeted at a specific segment of the market. Based on our experience assessment, successfully navigating this program requires preparation, including reviewing your credit report and gathering necessary financial documents like tax returns and pay stubs before approaching a lender.
In conclusion, the Palm Beach County HOME Program is a valuable resource for eligible first-time buyers. To maximize your chances:
