Bay County Housing Program: Hometown Heroes and Local Down Payment Help
Up to $35,000 from the Florida Hometown Heroes Housing Program, plus Bay County's own county assistance. Income limit here: $148,350.
Hometown Heroes › County Housing Programs › Bay County
If you work in healthcare, education, public safety or the military and want to buy in Bay County, two separate pots of down payment help can apply to you: the statewide Florida Hometown Heroes Housing Program and Bay County's own locally run housing assistance.
Bay County's income limit of $148,350 ranks 36 of 67 Florida counties. Bay County's FHA loan ceiling is $541,287; a first mortgage that size would draw $27,064 under the 5% rule.
Income limit (FHA / VA / HFA)
$148,350
Income limit (USDA)
$119,850
Max loan, FHA
$541,287
Max loan, HFA / VA
$832,750
Hometown Heroes help
5% of first mortgage, $10,000 to $35,000
County seat
Panama City
Income limits: TBA funding option, effective May 6, 2026. Loan limits effective Jan 2, 2026. Source: Florida Housing Finance Corporation Hometown Heroes lender guide. Bond-funded limits may differ.
State help and county help in Bay County: how they differ
Florida Hometown Heroes (state)
Florida Housing lends you 5% of your first mortgage (between $10,000 and $35,000) as a silent second mortgage at 0%. Nothing is due monthly, and it adds nothing to your debt-to-income ratio, but the full amount comes due on sale, refinance or payoff. Read the full Hometown Heroes guide.
Bay County local assistance (SHIP-funded)
Bay County receives state SHIP money every year and decides locally how to spend it. Down payment and closing cost help is an approved use. Amounts, income caps and whether the help is forgivable are set in the county's Local Housing Assistance Plan, so they differ from Hometown Heroes.
Bay County government website · Florida Housing SHIP local contacts
Stacking state and county help is sometimes possible and sometimes not. That is decided case by case before you reserve funds.
Who qualifies in Bay County
Eligibility starts with your job: full-time work for a Florida-based employer in an approved occupation. Teachers and school staff (Bay schools), sheriff's deputies and corrections staff (Bay Sheriff), nurses, paramedics and childcare workers in Bay County are among the eligible groups.
We have dedicated mortgage guides for many of these jobs:
- Healthcare: mortgage options for physicians and doctors
- Healthcare: mortgage options for nurses and medical professionals
- Public safety: mortgage options for corrections officers
- Public safety: mortgage options for police officers
- First responders: mortgage options for firefighters
- First responders: mortgage options for EMTs and paramedics
- Education: mortgage options for teachers and school staff
- Military: mortgage options for active-duty military and veterans
Bay County is home to Tyndall Air Force Base, Naval Support Activity Panama City. Active-duty service members, Reserves, Coast Guard and Florida National Guard members are eligible.
Where you can use it in Bay County
Any part of Bay County works, including Panama City, Fountain, Lynn Haven, Mexico Beach, Panama City Beach, Youngstown, as long as you live in the home. Single-family houses, townhomes, approved condos and 2 to 4 unit buildings (you occupy one unit) are all eligible.
Parts of Bay County fall inside USDA-eligible areas, so a USDA first mortgage (zero down) can be paired with Hometown Heroes for qualifying addresses. The USDA income limit here is $119,850.
Check property records and taxes with the Bay County Property Appraiser.
Bay County housing news
- Florida Counties with the Highest and Lowest Property Tax Rates (Florida for Boomers, Sep 22, 2026)
- Bay County moves forward with new development impact fees (AOL.com, Sep 15, 2026)
Updated Oct 5, 2026.
Bay County Hometown Heroes questions
What is the Hometown Heroes income limit in Bay County?
For FHA, VA and conventional HFA loans, the 2026 Hometown Heroes income limit in Bay County is $148,350 (TBA funding, effective May 6, 2026). For USDA loans it is $119,850. Under the TBA option, only the income of borrowers on the loan is counted, not the whole household.
Do I have to pay back Hometown Heroes assistance in Bay County?
It is not a grant. Hometown Heroes is a 0% interest, deferred second mortgage with no monthly payment. It is repaid in full on sale, transfer of deed, satisfaction of first mortgage, refinance of first mortgage, or if the home stops being your primary residence. Local programs funded through Bay County's SHIP allocation can be structured differently, which is why it pays to compare both.
Does Bay County have its own down payment assistance program?
Yes. Every Florida county, including Bay County, receives state SHIP (State Housing Initiatives Partnership) funds, a minimum of $350,000 a year, and can use them for down payment and closing cost help. Bay County sets its own income caps, amounts and repayment terms in its Local Housing Assistance Plan, and funding windows vary.
Does Hometown Heroes cover service members stationed in Bay County?
Yes. Active-duty U.S. military, Reserves, Coast Guard and Florida National Guard members are eligible occupations, including personnel at Tyndall Air Force Base and Naval Support Activity Panama City. Under the TBA option, active-duty members with a current LES are exempt from the first-time buyer requirement, and veterans discharged other than dishonorably (DD214) are exempt too.
What is the maximum Hometown Heroes assistance in Bay County?
Assistance is 5% of your first mortgage amount, with a minimum of $10,000 and a maximum of $35,000. Bay County's FHA loan ceiling is $541,287; a first mortgage that size would draw $27,064 under the 5% rule.
Who can help me apply for Hometown Heroes in Bay County?
Hometown Heroes is reserved through Florida Housing–approved participating lenders, first come, first served. Stairway Mortgage (Jim Blackburn, NMLS #1072866) can review your occupation, income against the Bay County limit, and whether Bay County's local program fits alongside it.
Jim Blackburn, NMLS #1072866 · Stairway Mortgage. Program terms, limits and funding availability are set by Florida Housing Finance Corporation and Bay County and can change. Estimates are not a commitment to lend. Equal Housing Opportunity.