07/21/2026
I’m seeing a lot of people excited about the return of Florida’s Hometown Heroes Program and understandably so! It can be an amazing opportunity for many eligible homebuyers. BUT… as a mortgage professional, I think it’s important to share some additional information, especially for our Veterans using VA financing.
If you qualify for a VA loan, think carefully before combining your VA benefit with Hometown Heroes assistance. Here’s why:
Hometown Heroes assistance is not free grant money. It is structured as a 0% deferred SECOND mortgage with no monthly payment but the balance becomes DUE in FULL when you sell or refinance the home.
One of the GREAT benefits available to Veterans is the VA IRRRL Streamline Refinance. This can allow an eligible Veteran to refinance their existing VA loan when rates improve with a much simpler process than a traditional refinance.
⚠️ Here’s where Hometown Heroes can become an issue: If you have a Hometown Heroes second mortgage, that assistance must be repaid when the first mortgage is refinanced.
So imagine rates come down and you want to take advantage of your VA streamline refinance, you will first have to repay the Hometown Heroes assistance in full.
If you received $15,000, $20,000, $25,000 or more in assistance, that could create a BIG obstacle to refinancing, especially for a Veteran who originally purchased with 0% down and may not have built significant equity yet.
The takeaway: Hometown Heroes can be a GREAT program, but just because assistance is available doesn’t mean it is automatically the best financial strategy for every borrower.
For our Veterans, the VA loan already offers an incredible benefit, including the ability to purchase with 0% down in many situations and access to the VA IRRRL for a refinance. Sometimes the best mortgage advice isn’t just about “How much money can I get today?”
It’s about “How will this decision affect me later?”
Have questions about Hometown Heroes or VA financing? Let’s talk through ALL of your options before you make a decision. 🇺🇸
Kalinda Dolman
Sr. Mortgage Loan Originator-Dr. Mortgsge
NMLS 1021807
954-871-3588
www.KalindaDolman.com
[email protected]
