Grants for First-Time Home Buyers | 2026 Guide

How first-time home buyers use grants to buy a house

A first-time home buyer grant takes some of the sting out of purchasing a home by helping with your down payment and closing costs. These grants usually don’t need to be paid back, and many state agencies and nonprofits offer them to eligible buyers. Here’s what to know if you’re thinking about using a grant to buy your first home.

In this article (Skip to…)

• Grants explained
• Requirements
• Home buyer grant programs
• Finding grants
• Applying
• FAQs

What are first-time home buyer grants?

First-time home buyer grants are financial assistance programs that help eligible buyers cover upfront costs like the down payment and closing costs. Unlike mortgage loans, grants generally don’t need to be repaid and can range from a few thousand dollars to a percentage of the home’s purchase price. State and local housing agencies, nonprofits, and some mortgage lenders offer grant programs that help make the home-buying process more affordable.

Types of financial assistance

In addition to grants, some first-time homebuyer programs offer down payment assistance (DPA) that provides funds to cover a portion or all of your down payment or closing costs.

• Forgivable loan: A loan that does not need to be repaid if the borrower meets certain conditions, such as living in the home for a specific number of years.
• Grant: Financial assistance that does not need to be repaid.
• No-interest loan: A loan that does not accrue interest, requiring the borrower to repay only the principal amount.
• Low-interest loan: A loan with an interest rate below market rates, making it more affordable for borrowers.
• Deferred payment loan: A loan that postpones repayment until a later date, such as when the home is sold, refinanced, or the mortgage is paid off.
• Second mortgage: An additional loan taken out on top of the first mortgage, often used to cover down payment, closing costs, or home improvements.

What experts are saying

Thomas Brock, CFA, CPA

“A homebuyer grant isn’t necessarily tax-free. The tax treatment depends on how the assistance is structured, and some lender-provided assistance may be taxable. Be sure to assess the tax treatment before accepting the assistance. If necessary, consult with your CPA. Spending some time upfront can help you avoid an unexpected surprise when it’s time to file your taxes.”

How to get a first-time home buyer grant

Eligibility requirements for home buying grants vary by program but often includes:

• Being a first-time home buyer (typically no ownership in the past three years).
• Staying within income limits, often 80%–120% of the area median income (AMI).
• Buying a primary residence and meeting any debt-to-income ratio and minimum credit score requirements.
• Completing an approved homebuyer education course.

Many first-time home buyer grants are designed for specific professions, including teachers, first responders, healthcare workers, law enforcement officers, and firefighters. Check the particular criteria for grant programs you’re interested in.

Popular first-time home buyer grants to buy a house

First-time home buyer grants help new buyers pay for expenses like down payments and closing costs. Let’s look at the different grants to buy a home and how to qualify for them.

For a list of state-specific grants, please visit our state content hub and select your state to explore what grants are available to you.

Where to find first-time home buyer grants

To find grants for first-time home buyers, start your search with:

• State housing finance agencies (HFAs): The National Council of State Housing Agencies lists all the state HFAs with links to each agency. Most states offer down payment and closing cost assistance through their HFAs.
• Local government agencies: Check with your city and county housing departments for first-time home buyer grants specific to your area.
• Non-profit housing organizations: Look for those in your area that offer assistance to first-time home buyers. They often have grant programs or can guide you to other local resources.
• Banks and mortgage lenders: Some offer proprietary grants for first-time home buyers. Ask your lender about any available grants or assistance programs.
• Employers and unions: Check with your employer or labor union to see if they offer housing assistance programs for employees or members. Some offer first-time home buyer grants or other forms of financial assistance.
• HUD's Directory of Homebuying Programs: The U.S. Department of Housing and Urban Development (HUD) maintains a directory of homebuying programs by state to help you find local grant programs and other assistance options.

You can also ask your real estate agent or loan officer for recommendations on local first-time home buyer grant programs.

How to apply for first-time home buyer grants

Use this step-by-step guide to prepare for the first-time home buyer grant application process.

• Step 1: Most home buyer grants begin by confirming that you meet basic requirements such as income limits, credit scores, and property location rules set by state or local housing agencies.
• Step 2: You’ll need to submit supporting documents to prove you’re financially ready to buy, including pay stubs or tax returns, bank statements, identification, and a mortgage pre-approval letter.
• Step 3: Many grant programs require you to complete a homebuyer education course from an approved provider and include the completion certificate with your application.
• Step 4: Your application must be submitted with all required forms and documents before the grant program’s deadline to be considered for that funding cycle.
• Step 5: Once submitted, your grant application will be reviewed for eligibility, and approved funds are typically sent directly to your lender.

FAQs about first-time home buyer grants

See which first-time homeowner grants you may qualify for

Use the links below to explore the home-buying programs available to you. These resources can help you compare loan options, check eligibility, and find grants or assistance in your area. Click through to see which programs fit your budget and home purchase plans.