St. Petersburg Homebuyer Assistance Program: Up to $80,000 Toward Your Home

The City of St. Petersburg Homebuyer Assistance Program (HAP) gives eligible buyers up to $80,000 toward the purchase of a home inside St. Petersburg city limits. It is for households that lived in St. Petersburg when Hurricane Idalia (2023) or Hurricane Helene (2024) hit, do not own a home today, and earn up to 120% of the area median income.

The money comes from a federal disaster recovery grant the City received from HUD after those storms. It can pay for your down payment, up to $10,000 of closing costs, and discount points to lower your rate. The City places it as a second mortgage that is forgiven after five years if you keep living in the home.

Buyers apply through their mortgage lender, not on their own. We have used this program with St. Petersburg buyers, and Modern Home Lending is licensed in Florida. We set up your first mortgage, put together your application, and submit it to the City as soon as you are under contract.

How much assistance can you get?

You can get up to $80,000. The City only gives what you need to close the gap between the cost of the home and what you can cover yourself.

The program can pay for:

• Your down payment
• Up to $10,000 of closing costs
• Discount points to buy down your interest rate
• Paying down the loan amount so your payment fits

Here is how the City works out your award:

1. Your lender approves you for the largest 30-year fixed-rate first mortgage you can afford under the program's rules.
2. Your own savings, gifts, seller credits and any other grants are applied.
3. The program covers what is left, up to $80,000.

The program's affordability rule is that your monthly housing payment (principal, interest, taxes and insurance) should be no more than 40% of your gross monthly income, and all of your monthly debts together no more than 50%. Assistance can go toward getting your payment down to those levels.

Who qualifies for the St. Petersburg Homebuyer Assistance Program?

You need to meet all of these:

• You lived in St. Petersburg during the storms. Your primary residence was inside city limits at the time of Hurricane Idalia or Hurricane Helene. A lease, utility bill, driver's license, pay stub, or FEMA letter from that time can prove it.
• You do not own a home. You cannot own any residential property when you apply. A partial inherited share of a home you do not live in can still be okay.
• Your household income is at or under 120% of the area median income. Every adult in the household counts. See the limits below.
• You are a U.S. citizen or qualified noncitizen, such as a permanent resident.
• You can get a 30-year fixed-rate mortgage with no prepayment penalty and with taxes and insurance paid through escrow. Adjustable-rate and balloon loans do not qualify.
• You complete a homebuyer education class from a HUD-approved housing counseling agency. The program lists it as an 8-hour class, and you pay the class fee.
• You will live in the home as your primary residence for at least five years.

Everyone on the loan has to live in the home. If you are married and only one spouse is on the loan, both spouses still sign the mortgage.

What are the income limits for 2026?

The program uses HUD's income limits for the Tampa-St. Petersburg-Clearwater area, which go by household size. Households at or under 80% of the area median income get first priority. Households between 80% and 120% can qualify too, but only a limited share of the funds can go to them.

These are HUD's 2026 limits, in effect since June 1, 2026. HUD updates them each spring.

The program counts income using the adjusted gross income on your most recent federal tax return (Form 1040), for every adult in the household. If someone did not file, recent pay stubs and benefit letters are used instead.

Who gets priority?

Applications are handled first come, first processed, in this order:

1. Priority I: income at or under 80%, and the household includes someone under 18 or 65 or older, someone with a disability, or an essential worker
2. Priority II: income at or under 80%
3. Priority III: income between 80% and 100%, with one of those same household factors
4. Priority IV: income between 80% and 120%

Essential workers include teachers and school staff, police and fire, health care workers, skilled building trades, auto mechanics, government employees, and active military.

What kind of home can you buy?

The home has to be inside St. Petersburg city limits and become your primary residence. It must be vacant or owner-occupied at closing, so you cannot buy a home with tenants in it. Eligible homes include:

• Single-family homes, including concrete block
• Modular homes
• Manufactured homes built after 1999, including on leased land
• Condos, townhomes, and one unit of a duplex, triplex, or fourplex, as long as the unit has its own parcel ID

You cannot use the program for a whole duplex or larger building, an ADU, an RV, a houseboat, or a home in a floodway or a federal Coastal Barrier Resources area.

Two more checks matter in St. Petersburg:

• Inspection. The City requires a full home inspection by a Florida licensed inspector (a four-point inspection is not enough). Any repairs the City requires must be finished before the money is approved. A newly built home can use a Certificate of Occupancy dated within six months of closing instead.
• Flood zones. A home in a FEMA flood zone must meet current building and flood rules, and you must carry flood insurance for as long as you own it. The home also cannot have unrepaired storm damage at closing.

Homebuyer assistance calculator: how much could you get?

This calculator checks your household income against the program's limits, then estimates your assistance using the program's rules. Enter your own interest rate to see the dollar estimate. Leave taxes and insurance blank and we will use a rough estimate for St. Petersburg.

Do you have to pay the assistance back?

Not if you stay. The assistance is a second mortgage with no interest and no monthly payments. It is forgiven 20% each year, and after five years in the home you owe nothing.

If you sell, rent out, transfer, or move out of the home, or refinance without the City's approval, before five years are up, you repay part of it:

For the full five years you also need to keep homestead on the home and keep your homeowners insurance (and flood insurance, if required) in place. The City checks in once a year.

The City can forgive the balance early in a few situations, such as the death of the owner, a military transfer or deployment, or a permanent move to a nursing home.

How do you apply?

You apply through your lender. Here is how it works with us:

1. Take the homebuyer education class from a HUD-approved housing counseling agency and keep the certificate.
2. Get pre-approved with us for a 30-year fixed-rate mortgage. The program wants a pre-approval no more than 30 days old when the application goes in.
3. Find a home in St. Petersburg and get your offer accepted.
4. We submit your application to the City as soon as you sign the contract, with your income, ID, residency and other documents.
5. The City reviews it. That includes eligibility, a check that you are not getting the same kind of help from another source, an environmental review, and an inspection review.
6. The City issues an award letter with your final assistance amount.
7. You close. The City wires the assistance to the title company.

Build time for the City into your contract dates. The program needs at least 20 working days' notice of your closing date to have the funds ready. Ask us how much time to allow before you write your offer.

Funding is limited. The City set aside $5 million for this program, which is enough for only a limited number of buyers at the full $80,000. Applications are handled as they come in, while funding lasts. Ask us where funding stands before you plan around it.

Can you combine HAP with other down payment assistance?

Yes, with some limits. You can combine it with other assistance, such as a state or county program or a gift from family, as long as the other help is not:

• Another homebuyer assistance program run by the City of St. Petersburg
• Another homebuyer program paid for with federal disaster recovery (CDBG-DR) money

Other assistance is counted first, and the City's award only covers what is left. You must tell the program about every source of help you expect to use.

Common questions about St. Petersburg homebuyer assistance

Do I have to be a first-time homebuyer?

You cannot own any home or other residential property when you apply. You may have owned a home before, including at the time of the storms, as long as you do not own one now.

Can I use the assistance with an FHA, VA, or conventional loan?

The program does not name a loan type. It requires a 30-year fixed-rate first mortgage with no prepayment penalty and with taxes and insurance escrowed. FHA, VA, and conventional loans can all fit that, and we can compare them for you.

Did I have to be affected by the storms to qualify?

You have to have lived in St. Petersburg at the time of the storms. The program does not require that your home was damaged. If you received FEMA, SBA, or insurance money for the same purpose as this assistance, such as buying a home, that amount can be subtracted from your award.

Can I refinance after buying with HAP?

Only with the City's approval during the five-year period. The City generally does not agree to put its loan behind a new one, but it may allow a refinance that lowers your rate and payment with no cash out. A refinance without approval makes the remaining balance due.

What if the home is in a flood zone?

You can still buy it if it meets current building and flood rules. You must carry flood insurance for as long as you own the home, not only during the five years.

Does Modern Home Lending run this program?

No. The City of St. Petersburg runs the program and decides every application. Modern Home Lending is a mortgage broker licensed in Florida. We arrange your first mortgage and submit your assistance application to the City through the lender process.

Find out what the program could do for your St. Petersburg purchase

If you lived in St. Petersburg during Idalia or Helene and are ready to buy, talk with us before you start shopping. We will check whether you fit the program, run your numbers with the assistance, and get you pre-approved for a home purchase.

The Homebuyer Assistance Program is run by the City of St. Petersburg with federal CDBG-DR funds from HUD. The City is not affiliated with Modern Home Lending and does not endorse this article. Modern Home Lending does not decide eligibility or award amounts. Program details come from the City's program guidelines (Version 2.0, October 6, 2026) and can change, so ask us for the current terms.

Programs, rates, and terms are subject to change without notice. This is not a commitment to lend. All loans are subject to credit approval and program guidelines.