Receive up to $65,000 in purchase assistance. A 0% interest, deferred, forgivable loan designed to help you purchase your first home in Okaloosa County.
Funds are limited and distributed on a first-come, first-served basis.
$65,000
Max Award Amount
0% Rate
Interest on Second Mortgage
Forgivable
After 10 Years Residency
This program is not "just" down payment assistance. It provides a flexible funding source to solve common deal problems. Funds may be used for:
Gross annual household income must not exceed these limits (effective April 1, 2026):
| Household Size | Max Income |
|---|---|
| 1 Person | $85,860 |
| 2 Person | $97,920 |
| 3 Person | $110,160 |
| 4 Person | $122,400 |
| 5 Person | $132,240 |
| 6 Person | $142,080 |
The "3-Year Rule"
Standard eligibility requires that you have not owned a home as your primary residence in the past three years. However, there are official exceptions that may qualify you even if you have owned a home previously.
You qualify if you previously owned a home only with a former spouse while married and are now a single parent.
You may qualify if you are an adult who has not worked full-time for a number of years but has worked without pay to care for the home and family.
You qualify if you owned a mobile home that was not permanently affixed to a foundation in accordance with local codes.
Your total monthly housing payment (Principal, Interest, Taxes, Insurance) must not exceed 30% of your gross monthly household income.
Home must be located in Okaloosa County. Purchase price cannot exceed 90% of the area average. Mobile or manufactured homes are not eligible.
0% interest, no monthly payments. The loan is secured by a recorded second mortgage. 50% is forgiven after year 5, then 10% each subsequent year. Full forgiveness after 10 years if you remain in the home.
You cannot apply directly with the county. The process must be initiated by a participating lender who has completed the required training.
Success starts with knowledge. To ensure long-term stability, all recipients (including spouses) must complete a HUD-approved Homebuyer Education Class before funds are released.
Get Certified
Classes available online
or in-person.
The Okaloosa County SHIP Down Payment Assistance Program is available for eligible properties located anywhere within the county limits, including:
Qualified homebuyers can receive up to $65,000 in purchase assistance. These funds are structured as a 0% interest, deferred loan that can be applied toward your down payment, closing costs, rate buydowns, or principal reduction.
Yes, the loan is forgivable if you remain in the home. 50% of the loan is forgiven after year 5, and the remaining balance is forgiven at a rate of 10% per year for years 6 through 10. After 10 years, the loan is fully forgiven.
Income limits depend on household size. For a household of 1, the limit is $85,860. For a family of 4, the limit is $122,400. These figures are based on gross annual household income and are effective as of April 1, 2026.
Generally, yes. You must not have owned a home in the past three years. However, exceptions exist for displaced homemakers, single parents who only owned with a former spouse, and owners of non-permanently affixed mobile homes.
You cannot apply directly to the county. You must get pre-approved with a participating lender who has completed the required training. Your lender will submit the application file on your behalf once you have a contract on a home.
No. Mobile homes and manufactured homes are strictly ineligible for the Purchase Assistance program. The funds must be used for a site-built single-family home located within Okaloosa County.
The program allows funds to be used for repairs required by an inspection or appraisal. However, all repairs must be completed and receipts submitted before SHIP funds are released, except for roof repairs which may be completed post-closing if specified in the contract.
The county does not publish a specific minimum credit score. Instead, applicants must demonstrate "adequate and stable income and acceptable credit" as determined by the participating lender’s underwriting standards.
No. The home must be your primary residence. If you rent out the property, sell it, refinance, or move out during the 10-year lien period, you will be triggered to repay the outstanding balance of the loan immediately.
Eligible closing costs include doc stamps, recording fees, title insurance, surveys, and appraisal fees. The program does not cover prepaid items (like insurance premiums or property taxes), HOA fees, or real estate commissions.
$65,000 in forgivable assistance can turn your dream of homeownership into reality. Don't wait until funds run out for the year.
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