Florida SHIP Program: Local Down Payment Assistance Explained

What is SHIP?

The State Housing Initiatives Partnership (SHIP) is Florida's largest locally administered affordable housing program. It was created in 1992 under the William E. Sadowski Affordable Housing Act and is funded by documentary stamp tax revenue collected on real estate transactions across the state.

Every year, Florida distributes SHIP funds to all 67 counties and to entitlement cities (cities large enough to receive HUD CDBG funds directly). Each local government writes a Local Housing Assistance Plan (LHAP) that defines exactly how its share of SHIP dollars will be used. That's why SHIP looks different in Miami-Dade than it does in Columbia County.

How SHIP down payment assistance works

The most common use of SHIP is down payment and closing cost assistance for first-time homebuyers. Typical structure:

• Award amount: $7,500 to $60,000+ depending on the county and your income tier
• Form: 0% interest deferred second mortgage, usually forgivable
• Forgiveness term: 5, 10, 15, or 30 years — varies by jurisdiction
• Recapture: Sell or refinance before the term ends and you repay a prorated balance
• Use of funds: Down payment, closing costs, sometimes principal reduction or repairs

Eligibility requirements

SHIP rules vary by county, but most programs share these baseline requirements:

• First-time homebuyer — no ownership interest in a primary residence in the last 3 years
• Income limits based on your county's Area Median Income (AMI). SHIP serves very-low (≤50% AMI), low (≤80% AMI), and moderate (≤120% AMI) income households
• Primary residence — investment properties and second homes are not eligible
• Homebuyer education — most counties require an 8-hour HUD-approved course
• Purchase price limit — set by the LHAP, often tied to FHA loan limits in the county
• First mortgage — usually FHA, VA, USDA, or conventional; many counties allow Florida Housing products

How SHIP differs from Florida Hometown Heroes and Florida Assist

Florida Hometown Heroes and Florida Assist are statewide programs from Florida Housing Finance Corporation — same rules in every county, applied through Florida Housing–approved lenders.

SHIP is the opposite. The money comes from the state, but the rules, application, and approval all happen at the county or city level. That's both a feature and a friction point:

• Feature: Local programs can be much more generous than statewide ones, especially in counties with strong housing budgets
• Friction: You have to find the right local office, learn its current LHAP, and apply before funds run out

Many Florida buyers stack SHIP + Hometown Heroes + an FHA first mortgage to maximize total assistance. The combination can erase nearly all out-of-pocket cash at closing for eligible buyers.

How to find your county's SHIP program

1. Search "[your county] SHIP program" or "[your city] housing assistance"
2. Look for the county's Housing Finance Authority, Office of Housing, or Community Development department
3. Read the current Local Housing Assistance Plan (LHAP) to confirm award amounts and eligibility
4. Check whether the program is currently open — SHIP funds are first-come, first-served and frequently close mid-year when funds are exhausted
5. Ask which lenders in your county are familiar with SHIP — not every loan officer has done one

Common mistakes to avoid

• Waiting to apply. Most counties exhaust SHIP funds well before the fiscal year ends. Apply as early as possible after the new allocation opens.
• Choosing a lender unfamiliar with SHIP. Coordination between the county, the lender, and the title company is everything. The wrong lender will miss deadlines.
• Skipping homebuyer education early. Most counties require a certificate before underwriting. Do it the week you start looking, not the week you go under contract.
• Assuming SHIP works like a grant. Most awards have a recapture period. If you might sell or refinance within 5–10 years, understand the prorated payback rules first.

Next steps

SHIP is one of the highest-leverage programs available to Florida homebuyers — and the one most likely to be missed because it lives at the county level. Pair it with a statewide Florida Housing product and an FHA or conventional first mortgage to maximize your assistance.

Take the free 60-second quiz to see which Florida programs — including SHIP, Hometown Heroes, and Florida Assist — you may qualify for in your county.