Need help with homebuying costs? First time homebuyer grants offer financial aid for down payments and closing costs. Find out what’s available, how to qualify, and how to apply.

Key Takeaways

First-time homebuyer grants offer non-repayable financial assistance for down payments and closing costs, with national programs providing up to $10,000 and local programs sometimes offering $40,000+.
Eligibility typically requires meeting income limits (usually 80% of area median income), maintaining good credit, using the property as a primary residence, and completing a homebuyer education course.
Popular programs include the National Homebuyers Fund (up to 5% of purchase price), Bank of America grants (up to $10,000), and the Chase Homebuyer Grant (up to $7,500).
To apply, contact participating lenders, complete required homebuyer education classes, and submit necessary documentation through your loan officer.
Additional assistance options include deferred-payment loans and forgivable loans that don't require repayment if certain conditions are met.

It's important that you know your rights as a homebuyer and understand how to get preapproved for a mortgage. If you're still unsure about your decision to buy a house or continue renting, then we suggest you take some time to understand your finances and sign up for My Home Pathway so we can help!

List of First Time Home Buyer Grants

National Homebuyers Fund (NHF): Provides up to 5% of the loan amount as a grant or forgivable loan for down payment and closing costs. Grants do not require repayment, and forgivable loans are forgiven after three years. Available nationwide.
Bank of America Grant Programs: Includes two options: "America’s Home Grant" offers up to $7,500 for closing costs, and the "Down Payment Grant" provides up to $10,000 for down payments. Both programs are designed to make homeownership more accessible.
Chase Homebuyer Grant: Offers up to $7,500 in grants for eligible buyers in select areas, which can be used for interest rate reductions or other mortgage-related expenses. Works with Chase’s DreaMaker loan and other mortgage types.
Wells Fargo Homebuyer Access Grant: Provides up to $10,000 in down payment assistance for eligible buyers in specific metro areas, along with additional credits for closing costs under certain conditions.

These programs offer substantial financial assistance tailored to different needs, making them excellent options for first-time homebuyers.

Understanding First Time Homebuyer Grants

First-time homebuyer grants provide financial aid to new homebuyers and are non-repayable.

These grants, commonly offered by banks, non-profit organizations, and state and local governments, aim to bridge the savings gap for down payments, making homeownership more attainable.

These grants can cover significant costs associated with purchasing a home, such as down payments and closing costs, making homeownership more accessible.

For example, some local programs even offer grants for closing costs that can significantly alleviate financial burdens, reaching amounts as high as $10,000. This kind of assistance can turn the dream of owning a home into a reality for many prospective homebuyers.

Knowing how these grants work is essential for first-time homebuyers.

They offer financial relief and open the door to homeownership, making it more accessible to those who might otherwise struggle to afford it. Whether you’re a low-income buyer or seeking to reduce costs, these grants are worth exploring.

Eligibility Requirements for First Time Homebuyer Grants

Want to qualify for these grants? Here's what you need to know. Most programs look at your income, usually capping at 80% of what people typically make in your area, though some will go up to $154,250. You'll need to check your household income against the local limits to see if you fit.

Your credit score matters too - keep it in good shape! And heads up, you'll need to actually live in the home, not rent it out or use it as a vacation spot.

Be ready to put some money down yourself - typically around 1-3% of the purchase price. That's still way better than the traditional 20%!

Most programs also want you to take a homebuyer class before they'll hand over the money. These classes are actually pretty helpful - you'll learn the ins and outs of buying a home and what to expect as a homeowner. Tick all these boxes, and you've got a much better shot at landing that grant!

Popular First Time Homebuyer Grant Programs

There are lots of grant programs available to help low-income homebuyers, each with its unique benefits and requirements.

In this section, we’ll take a look at some of the most popular first-time homebuyer programs, including the National Homebuyers Fund, Bank of America’s grant programs, and the Chase Homebuyer Grant.

Understanding these options can help you find the right grants and make the homebuying process more manageable.

National Homebuyers Fund

The National Homebuyers Fund (NHF) offers grants up to 5 percent of the home’s purchase price. To qualify, you must find a participating mortgage lender willing to forgive the funding, significantly reducing the overall purchasing cost.

The NHF supports low to moderate-income homebuyers by providing financial assistance that bridges the gap between savings and the funds needed for a down payment and closing costs, bringing homeownership within reach for many families.

Bank of America Grant Programs

Bank of America has two main grant programs for first-time homebuyers: the America’s Home Grant, which provides $7,500, and the Down Payment Grant, offering $10,000. These grants can significantly reduce the financial burden of purchasing a home.

However, to qualify for these program guidelines, applicants must secure a mortgage loan through Bank of America. This requirement ensures that the funds are used responsibly and in conjunction with the bank’s lending practices.

By taking advantage of these grants, eligible buyers can make their homeownership dreams a reality with a little extra financial help.

Chase Homebuyer Grant

The Chase Homebuyer Grant offers up to $7,500, which can cover down payment costs, and mortgage fees, and even lower the interest rate on your mortgage.

This flexibility makes it highly valuable for reducing initial out-of-pocket expenses.

The Chase Homebuyer Grant, designed for first-time buyers, provides essential financial support, lowering barriers to entry and making homeownership more attainable.

State and Local First Time Homebuyer Grants

State and local first-time homebuyer grants make access to homeownership easier by offering financial assistance tailored to local needs. Here are a few examples:

California Dream for All Program: Down payment assistance up to 20% of purchase price as a shared equity loan.
New York HomeFirst: Provides up to $100,000 in down payment or closing cost assistance for first-time buyers in NYC.
Florida Hometown Heroes: Offers below-market interest rates and up to $25,000 in down payment assistance for essential workers.
Texas SETH Program: Provides up to $40,000 in down payment assistance through 0% interest, deferred forgivable loans.
Illinois Opening Doors: Offers $6,000 in down payment assistance as a forgivable loan if you stay in the home 5+ years.
Washington Home Advantage: Combines competitive mortgage rates with up to 4% of the loan amount in down payment assistance.
Massachusetts ONE Mortgage: Offers low down payment requirements, no PMI, and subsidized interest rates for low-income buyers.
Colorado FirstStep: Provides up to 3% of mortgage amount as a grant that doesn't require repayment.
Maryland SmartBuy: Unique program offering student debt relief (up to $30,000) alongside down payment assistance.
Ohio Your Choice! Down Payment Assistance: Offers 2.5% to 5% of home purchase price with forgivable terms after 7 years.

These programs are funded by diverse sources, including federal HUD grants and various state programs. For more information, contact your state’s housing finance authority or local mortgage lenders, who can guide you through the application process.

How to Apply for a First Time Homebuyer Grant

There are several steps to apply for a first-time homebuyer grant. Start by contacting a loan officer from the list of participating lenders to understand what you need to do and the documentation you need for the grant program you chose.

Research available programs - Identify state, local, and national grant programs you might qualify for based on your location and circumstances.
Check your eligibility - Review income limits, credit requirements, and other qualifications for your chosen programs.
Contact participating lenders - Reach out to approved lenders who work with your desired grant program.
Complete a homebuyer education course - Most programs require completion of an approved education class that covers the homebuying process.
Get pre-approved for a mortgage - This strengthens your application and helps determine how much home you can afford.
Gather necessary documentation - Prepare financial documents including income verification, tax returns, bank statements, and proof of assets.
Submit your application - Your loan officer will typically help submit your grant application along with your mortgage application.
Follow up on requirements - Some programs may require additional steps or documentation before closing.
Attend required meetings or counseling - Certain programs require in-person appointments with housing authorities.
Close on your home - Once approved, your grant funds will be applied at closing toward your down payment or closing costs.

Most programs will ask you to take a homebuyer education class, which is actually pretty useful! Places like the San Diego Housing Commission offer these courses where you'll learn all about what goes into buying a home, so you'll feel confident when it's time to sign those papers.

Once you've got all your documents together, your loan officer handles the submission to the housing authority that runs the grant program.

Keep in mind that some programs might want you to finish that education course before you close on your home. Stick to these steps and you'll boost your chances of getting the financial help you need!

Tips for Securing a First Time Homebuyer Grant

Get pre-approved for a mortgage to strengthen your buying position and appear more attractive to sellers
Work with a knowledgeable real estate agent who understands local grant programs and can help find eligible properties
Complete homebuyer education classes to learn about budgeting, mortgage terms, and the application process
Be thoroughly prepared with all documentation organized before applying
Research multiple programs simultaneously to increase your chances of approval
Maintain or improve your credit score during the application process
Ask lenders specifically about grant programs they participate in, as not all advertise them prominently
Consider timing your application strategically, as some programs have limited funding that may run out
Follow up regularly on your application status to address any issues quickly

At My Home Pathway, we focus on making everyone a better candidate for a mortgage. If you're interested in getting your first mortgage, we can help!

First-time homebuyer grants provide non-repayable financial assistance for down payments and closing costs, with programs available from national organizations, banks, and local governments offering between $7,500 to $40,000 in aid.

Frequently Asked Questions

What are first-time homebuyer grants?

First-time homebuyer grants are essentially free money to help you buy your first home, and the best part is, you don’t have to pay them back!

Who typically offers first-time homebuyer grants?

First-time homebuyer grants usually come from banks, non-profit organizations, and state or local governments. So if you're looking for help, check with those places!

What is the maximum income limit for eligibility in some grant programs?

If you're looking into some grant programs, the income limit can go up to around $154,250. Keep that in mind when checking your eligibility!

What are some popular first-time homebuyer grant programs?

If you're looking for first-time homebuyer grants, check out the National Homebuyers Fund, Bank of America's America's Home Grant, and Chase Homebuyer Grant—they're pretty popular and can help you out!

What is a key requirement before receiving funding assistance from most grant programs?

You usually need to complete a homebuyer education course to qualify for funding assistance from most grant programs. It’s a smart step that can really help you out!

Disclaimer: My Home Pathway is a technology-driven risk improvement platform. We are not a mortgage broker or lender and are not representatives of any home loan programs. We are not a credit repair company, HUD-certified counseling agency, or one-on-one home counselor. While we offer mortgage-related services, we are not a bank, non-profit organization, foundation, or real estate agency. We may partner with those organizations to provide content and access related to our services.

The information provided is for educational purposes only and should not be considered credit repair advice or housing counseling services. For credit repair assistance or housing counseling, please consult with appropriate certified professionals or HUD-approved agencies.

Top First Time Homebuyer Grants: How to Qualify and Apply