Beautiful family home in Panama City, Florida - representing affordable homeownership opportunities through the First-Time Homebuyers Program
2026 Program Guidelines

Panama City First-Time Homebuyers Program

Access up to $60,000 in purchase assistance. Secure your future in Panama City with 0% interest deferred funding.

See If You Qualify

Up to $60,000 Total

Receive up to $50,000 for down payment assistance plus up to $10,000 for eligible closing costs.

Deferred Payment

0% interest, non-amortizing second mortgage. No monthly payments required on the assistance loan.

Inside City Limits

Designed specifically for affordable homes, townhouses, and condos located within Panama City limits.

What is the Panama City First-Time Homebuyers Program?

The Panama City First-Time Homebuyers Program is a strategic housing initiative launched by the City of Panama City to make homeownership achievable for local residents. Unlike traditional bank loans, this program acts as a bridge between your current savings and the costs required to buy a home.

It provides substantial purchase assistance in the form of a second mortgage. This funding tackles the two biggest hurdles to homeownership: the down payment and closing costs. By reducing the upfront cash required, the program empowers eligible buyers to purchase safe, affordable homes within city limits without depleting their life savings.

Who is This Program Perfect For?

This initiative is designed to support a wide range of future homeowners, from renters to growing families.

The Local Renter

Residents currently renting in Panama City who are ready to stop paying a landlord and start building their own equity.

The Growing Family

Families needing more space and stability but who lack the large lump sum typically required for a 20% down payment.

The Steady Earner

Buyers with reliable income and credit who are "mortgage ready" but need assistance with closing costs.

The Community Builder

Those wishing to purchase New Construction or Infill homes to contribute to the revitalization of Panama City.

See If You Fit These Profiles

Buyer Eligibility

  • First-Time Homebuyer: Must not have owned a home in the last 3 years.
  • Income Limits: Household income must be within 2026 program tiers (see table).
  • Pre-Approval: Must obtain mortgage lender pre-approval first.
  • Education: Must complete a HUD-approved homebuyer course before closing.

Property Requirements

  • Location: Must be inside Panama City city limits.
  • Price Cap: Purchase price must be $300,000 or less.
  • Type: Single-family, Townhouse, Condo, or one side of a Duplex (owner-occupied).

2026 Income Limits

Eligibility is based on Bay County / Panama City AMI (Area Median Income). Figures subject to annual adjustment.

Income limits table showing 80% and 120% AMI limits for 1, 2, 3, and 4 person households
Household Size 80% AMI Limit 120% AMI Limit
1 Person $52,750 $79,080
2 Person $60,250 $90,360
3 Person $67,800 $101,640
4 Person $75,300 $112,920

Understanding the "Second Mortgage"

The assistance is structured as a deferred payment, 0% interest loan secured by a promissory note. It is not free money, but it is "silent"—meaning no monthly payments are due.

Forgiveness: Typically, the loan is forgiven if you maintain the home as your primary residence through the 30-year term. It becomes due if you sell, refinance, or move out.

Application Process

1

See If You Qualify

Complete the form below to see if you meet preliminary requirements.

2

Education & Pre-Approval

Get pre-approved with a lender and finish the HUD-approved course.

3

City Application

Submit full documentation packet to the City of Panama City.

4

Shop & Close

Find a home under $300k and funds are recorded at closing.

Frequently Asked Questions

How much down payment assistance is available in Panama City?
Eligible buyers can receive up to $50,000 for down payment assistance and up to $10,000 for closing costs. This creates a total potential benefit of $60,000 to help purchase an affordable home within Panama City limits.
What are the income limits for the 2026 Panama City program?
Income limits depend on household size. For 2026, a 1-person household limit typically ranges from $52,750 (80% AMI) to $79,080 (120% AMI). Larger households have higher limits; for example, a 4-person household can earn up to $112,920 at the 120% AMI tier.
Do I have to repay the Panama City down payment assistance?
The assistance is structured as a 0% interest, deferred-payment second mortgage. You generally do not make monthly payments. Repayment is typically required only if you sell the home, refinance, or stop living there as your primary residence during the 30-year term.
Is the Panama City homebuyer assistance a grant?
No, it is technically a "silent second" mortgage, not a grant. It is secured by a recorded mortgage and note. However, it is non-amortizing with 0% interest, meaning you don't pay interest on it, but the principal may be due upon sale or transfer.
What homes qualify for the Panama City First-Time Homebuyers Program?
Qualifying properties must be located within Panama City city limits and have a purchase price of $300,000 or less. Eligible types include single-family homes, townhouses, condominiums, and owner-occupied sides of a duplex. New construction and infill homes are also allowed.
Who counts as a first-time homebuyer for this program?
You are considered a first-time homebuyer if you have not owned a home in the past three years. This definition applies to the Panama City program, allowing previous homeowners to qualify if they have rented for at least three years prior to application.
Can I use the funds for closing costs?
Yes. In addition to the $50,000 for down payment, the program provides specific funding of up to $10,000 to cover eligible closing costs. This helps reduce the total cash-to-close amount needed significantly.
Do I need to take a homebuyer education course?
Yes. Completion of a HUD-approved first-time homebuyer education class is mandatory. You must complete this course and receive your certificate before closing on the home to receive the assistance funds.
How do I apply for the Panama City assistance program?
The process starts with getting pre-approved by a mortgage lender. Once pre-approved, you must submit a completed application package with required documentation to the City. We recommend checking your eligibility first to ensure you meet the basic criteria.
Is there a credit score requirement?
The City program requires you to obtain mortgage lender pre-approval first. While the City itself focuses on income and property criteria, you must meet your primary lender's credit score requirements (typically 620-640+ for FHA or conventional loans) to qualify.

Don't Miss Out on $60,000 in Funding

See If You Qualify