A federal tax credit that saves Florida homebuyers thousands per year by reducing their tax liability.
Written by Renzo Johnson, Licensed MLO · NMLS #PENDING · Last updated: February 2026
- Federal income tax credit of up to 50% of mortgage interest paid (capped at $2,000/year)
- Available for the life of the loan — save $20,000+ over 10 years
- Must be first-time buyer (3-year rule)
- Income and purchase price limits apply
- Must use with an FL Housing first mortgage
- Can be combined with Hometown Heroes or FL Assist
- The tax credit also INCREASES your qualifying income for DTI purposes