Grants for First-Time Home Buyers

Key Takeaways

First-time home buyer grants help you pay for down payment and closing costs.
Unlike loans, grants do not need to be repaid.
Grant eligibility often depends on income limits, home price limits, and location rules.
Some programs offer forgivable second mortgages that work like grants.

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.

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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.

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Types of financial assistance

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

Grant: Financial assistance that does not need to be repaid.
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.
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.

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.

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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.

Fannie Mae Community Seconds

Fannie Mae’s Community Seconds program¹ offers assistance similar to a new homeowner grant, but the funds are structured as a second mortgage that may be repayable or forgivable depending on the provider. Approved organizations, such as state housing agencies, nonprofits, employers, and local governments, can offer low- or no-interest financing to help cover your down payment, closing costs, home repair expenses, or an interest-rate buydown. When paired with a Fannie Mae first mortgage, the assistance can raise the combined loan-to-value ratio to 105%, reducing the amount of cash needed at closing.

Freddie Mac Affordable Seconds

Freddie Mac’s Affordable Seconds program² isn’t technically a grant to buy a house, but it acts like one when the provider offers deferred or low-cost repayment terms. Affordable Seconds helps cover upfront expenses and can be paired with a Home Possible mortgage to reach a TLTV of up to 105%. The program is offered through partnerships with agencies, credit unions, and CDFIs that assist moderate- and low-income buyers. The specific terms depend on the individual program, so repayment and other features can vary.

Bank of America’s Grants for Homebuyers

Bank of America’s Community Homeownership Commitment⁴ provides two unique first-time home buyer grants:

America’s Home Grant offers up to $7,500 in lender credits toward closing costs, including title insurance, recording fees, appraisals, and discount points.
Down Payment Grant provides up to $10,000 (or 3% of the sales price, whichever is lower) to assist with the down payment in select markets.

Eligible homebuyers must finance their mortgage through Bank of America, and program availability varies by market and income requirements. The funds don’t need to be repaid, though the down payment grant may be considered taxable income.

Wells Fargo Homebuyer Grants

Wells Fargo offers two grants to purchase a home⁵.

Homebuyer Access® grant provides up to $10,000 toward your down payment in select markets. The funds do not need to be repaid and can be used alongside other specific assistance programs.
Dream. Plan. Home closing cost credit provides up to $5,000 in lender credits for one-time closing costs, such as appraisal and processing fees. This credit can be combined with select Wells Fargo programs.

Eligible homebuyers must finance their mortgage through Wells Fargo, and availability depends on income and property location. A homebuyer education course may be required in some markets.

Citibank Lender Paid Assistance

Chase Homebuyer Grant

National Homebuyers Fund Grant

The National Homebuyers Fund (NHF)⁸ provides down payment and closing cost assistance of up to about 5% of the mortgage loan amount. You don’t need to be a first-time home buyer in many cases, and you can use it with FHA, VA, USDA, or conventional loans. NHF collaborates with participating lenders to structure assistance as a forgivable second mortgage or a homebuying grant, so the specific terms vary by state and lender.

Good Neighbor Next Door Program

The HUD Good Neighbor Next Door (GNND)⁹ program allows eligible teachers, police officers, firefighters, and EMTs to purchase HUD-owned homes in designated revitalization areas at a 50% discount. You only pay the reduced price, while the remaining half is placed on a silent second mortgage that requires no payments or interest. If you live in the home as your primary residence for three years, that second mortgage is fully forgiven.

State and local grants to buy a house

Non-profit organizations and state Housing Finance Agencies (HFAs) offer first-time home buyer grants and down payment assistance (DPA). For example:

Texas State Affordable Housing Corporation offers up to 5% of the home loan amount as an outright grant to cover the down payment for a new home.
New York’s HomeFirst Down Payment Assistance Program provides up to $100,000 for buyers in the five boroughs.

Mortgage credit certificate (MCC) program

A mortgage credit certificate (MCC) program allows you to claim a dollar-for-dollar tax credit for some of the mortgage interest you pay, up to $2,000 each year. While it doesn’t directly provide grants, it makes home buying more affordable. Mortgage lenders may consider MCCs when determining how much you can borrow. Typically, first-time buyers with incomes at or below the median income in their state or area qualify.

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.

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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.

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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.

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FAQs about first-time home buyer grants

There are no federal grants that give cash directly to first-time home buyers for a home purchase. When people mention federal help, they are usually referring to mortgage programs like FHA, VA, or USDA loans. These lower upfront costs do not provide grant money. Actual grants typically come from state housing agencies, local governments, nonprofits, or lenders.

You can find first-time home buyer grants in your area by checking your state housing finance agency, your city or county housing department, and local nonprofit homeownership programs. Most list their grants and down payment assistance online. Local lenders can also help, since many work directly with these programs.

You can sometimes combine more than one grant or down payment assistance program, but the rules vary by program. Some allow layering, meaning you can stack a grant with a forgivable second mortgage or lender credit. Others limit how their funds can be used. A lender or housing agency can confirm what works together.

Yes, there are grants for first-time home buyers with disabilities. Some housing agencies offer grant money, down payment assistance, or special fixed-rate mortgages for buyers with disabilities or households with a disabled family member.

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.

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Grants for First-Time Home Buyers | 2025 Guide