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About the City of St. Petersburg Purchase Assistance Program
The City of St. Petersburg Purchase Assistance Program is a 0% interest second mortgage for first-time buyers purchasing inside city limits. The city's Housing and Community Development division runs it, and lenders apply through the city's Neighborly portal. It pays 20% of the sales price plus up to $5,000 in closing costs, capped at $75,000 total. Citywide SHIP funds are paused, but the South St. Petersburg CRA version is accepting applications.
Households can earn up to 140% of Area Median Income, but the income tier sets the terms. The city's fiscal year 2026 limits (SHIP effective May 1, 2026) are $64,250 for one person and $91,750 for four at 80% AMI, $96,360 and $137,640 at 120% AMI, and $112,420 and $160,580 at 140% AMI. The home must be inside St. Petersburg city limits and cost no more than $544,233. Single-family homes, condos, townhomes and co-op apartments qualify. Buyers must put in 1% of the sales price from their own funds and finish an 8-hour HUD-approved homebuyer class. The first-time buyer rule is stricter than the usual three-year test: you cannot be on any residential deed, including rentals or inherited property. The city also caps debt-to-income at 43%.
Buyers at or below 80% AMI have the loan fully forgiven after 10 years of continued occupancy. Inside the South St. Petersburg CRA, buyers at 80% to 120% AMI get the same 10-year forgiveness, while buyers at 121% to 140% AMI defer payments for five years and then pay on 50% of the loan for five years. Outside the CRA, buyers above 80% AMI start repaying one month after closing. By comparison, the Pinellas County HFA's Home Key Plus and Florida Housing's FL Assist each top out at $10,000, repaid on sale or refinance.
How much assistance
Eligibility
- Income limits: Up to 140% AMI (City of St. Petersburg FY2026 chart, SHIP effective May 1, 2026). 80% AMI: $64,250 (1 person), $91,750 (4 persons). 120% AMI: $96,360 (1), $137,640 (4). 140% AMI: $112,420 (1), $160,580 (4). Citywide funds for 81%-140% AMI are limited; priority to 80% AMI and below.
- Purchase price limit: $544,233
- First-time buyer required: Yes — Buyer may not be on any other residential property deed, including rental and heir properties (timeshare deed allowed). Exceptions: single parent or displaced homemaker who only owned with a spouse; owner of only a home not permanently affixed to a foundation; owner of only a property that cannot be brought to code for less than the cost of a new permanent structure.
- Geographic restrictions: Property must be located within City of St. Petersburg municipal boundaries. Enhanced terms available for purchases within the South St. Petersburg Community Redevelopment Area.
- Homebuyer education required: Yes
How to Apply for City of St. Petersburg Purchase Assistance Program
Step 1: Confirm the address and your income tier
Check that the home sits inside St. Petersburg city limits, then use the city's CRA map to see whether it falls in the South St. Petersburg Community Redevelopment Area. Citywide SHIP funds are paused, so a CRA address is currently the only open path. Compare your household income with the fiscal year 2026 chart at stpete.org/residents/housing/income_limits.php, where the 140% AMI limit is $160,580 for a family of four.
Step 2: Complete the 8-hour homebuyer class
The city requires a certificate from an 8-hour Homebuyer Education class taught by a HUD-approved counseling agency, and its Lender Tool Kit adds a family budgeting and home maintenance class. Two local providers are Tampa Bay Neighborhood Housing Services at 727-442-4155 x106 and St. Petersburg Neighborhood Home Solutions at 727-821-6897. Finish early, because the certificate is a required upload in the lender's application.
Step 3: Choose a lender that submits city applications
Homebuyers cannot apply on their own. Your mortgage lender submits the application through the city's Neighborly participant portal after reviewing the city's Lender Tool Kit. City staff discuss pending files only with lenders and brokers, not with buyers or real estate agents. Ask lenders up front whether they have closed St. Petersburg down payment assistance loans before, since incomplete files are returned to the lender for more documents.
Step 4: Get approved for an affordable first mortgage
Your lender approves you for the first mortgage and gathers the city's checklist: two consecutive pay stubs, current checking and savings statements, the signed 1003 and 1008, the credit report and proof of earnest money. The city checks affordability with Florida Housing's residual income calculator and a 43% debt-to-income cap. There is no city pre-approval, and assistance is not confirmed until you sign the city's commitment letter.
Step 5: Pick a home and get it inspected
The purchase price cannot exceed $544,233, and the home must be a single-family house, condo, townhome or co-op apartment you will live in. A licensed home inspector must inspect the property, and every deficiency must be fixed before closing, with photos or paid invoices uploaded as proof. Your 1% contribution must come from your own funds, though earnest money, appraisal and inspection costs count toward it.
Step 6: Underwriting, commitment letter and closing
Complete applications move to the city's underwriting queue, and household income eligibility is certified within five business days. After approval, you sign the award letter and the city sends a closing packet to the title company. The city wires the loan to escrow five business days after it receives the closing disclosure. After closing, you must apply for the homestead exemption with the Pinellas County Property Appraiser.
Real Cost Example
On a $350,000 home in St. Petersburg, below the city's estimated median of $400,000, the city loan reaches its $75,000 cap: 20% of the price is $70,000 toward the down payment, plus $5,000 toward closing costs. The buyer must add 1% of the price, or $3,500, from personal funds. If both the $70,000 and the $3,500 go toward the down payment, the first mortgage drops to about $276,500.
Estimated closing costs in St. Petersburg run $8,000 to $12,000. The city's $5,000 covers part of that, leaving $3,000 to $7,000 for the buyer, seller credits or another program. Earnest money, the appraisal and the inspection can count toward the $3,500 contribution. The city bars cash back to the borrower at closing, so seller credits should be sized to the buyer's actual costs.
A buyer who also qualifies for the Pinellas County HFA Home Key Plus Program could add a $10,000 0% deferred second mortgage, which requires a 660 credit score and the HFA's first mortgage. If the lender confirms both loans can be layered, total help on this $350,000 home reaches $85,000. Home Key Plus is repaid on sale or refinance, while the city loan is forgiven after 10 years at or below 80% AMI.
Combining With Other Programs
The Pinellas County HFA Home Key Plus Program offers $10,000 in Pinellas County as a 0% deferred second mortgage, paired with the HFA's own first mortgage and a 660 minimum credit score. Florida Housing's FL Assist provides up to $10,000 as a 0% deferred second, and its HFA Preferred and Advantage PLUS seconds equal 3%, 4% or 5% of the loan. Both require a Florida Housing first mortgage, so ask the lender to confirm the city loan can sit alongside it.
The Pinellas County Down Payment Assistance Program, worth up to $75,000, lists St. Petersburg among the cities that run their own program, so it does not serve St. Petersburg addresses and cannot be combined with this loan. The city also bars cash back at closing and requires the full 1% buyer contribution regardless of other help. Lenders can reach the city's Housing division at 727-892-5554, and buyers should route status questions through their lender.
Florida Hometown Heroes offers 5% of the first mortgage, from $10,000 to $35,000, to full-time employees of Florida employers in health care, schools, public safety, child care and the military, but confirm current funding with a lender. Negotiated seller credits can cover the $3,000 to $7,000 in estimated closing costs left after the city's $5,000.
Pros and Cons
The biggest advantage is size: up to $75,000 at 0% interest, more than seven times the $10,000 Home Key Plus or FL Assist seconds. Buyers at or below 80% AMI owe nothing after 10 years of occupancy, and South St. Petersburg CRA buyers keep that full forgiveness up to 120% AMI. The 140% AMI ceiling, $160,580 for a family of four, reaches well into middle-income households. The $544,233 price cap sits above St. Petersburg's estimated $400,000 median, and the required buyer contribution is only 1% of the price.
The biggest limitation is funding: citywide SHIP money is paused, so buyers outside the South St. Petersburg CRA cannot apply until the city announces a reopening. The first-time buyer rule bars anyone who has ever been on a residential deed, including rentals and inherited property. Buyers above 80% AMI outside the CRA start repaying one month after closing, and forgiveness requires 10 years of continued occupancy. Every inspection deficiency must be fixed before closing. Buyers who don't qualify can look at Home Key Plus, FL Assist or Florida Hometown Heroes.
Frequently Asked Questions
Is the St. Petersburg down payment assistance program accepting applications?+−
How much down payment assistance can I get from the City of St. Petersburg?+−
Is the St. Petersburg purchase assistance loan forgiven?+−
Do I have to be a first-time homebuyer for St. Pete down payment assistance?+−
What are the income limits for St. Petersburg down payment assistance in 2026?+−
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Program details last verified: October 16, 2026