Browse Grants Federal Grants State Grants Nonprofit Grants Small Business
API / JSON

Grants & Assistance for First-Time Home Buyers

Federal, state, and local governments provide grants, loans, and assistance programs to help first-time home buyers overcome down payment and closing cost barriers. These programs support affordable homeownership for low-to-moderate income families seeking to purchase their first home. Below are 688 verified funding opportunities for first-time home buyer assistance.

Who Can Apply: First-time home buyers (individuals/families), nonprofit homeownership organizations, local housing authorities, community development organizations, and government agencies administering homebuyer assistance programs.

Types of First-Time Home Buyer Programs

💰 Down Payment Grants

Direct grants covering 3%-20% down payment requirements. Funds can be used for down payment and closing costs. Available from federal programs, state housing agencies, and local community development organizations.

📋 Closing Cost Assistance

Grants and subsidized loans covering closing costs, inspection fees, appraisals, title insurance, and other purchase expenses. Can significantly reduce upfront cash requirements for home purchase.

🏦 Affordable Mortgages

Low-rate mortgage programs with reduced credit requirements, flexible income documentation, and favorable terms. VA loans, FHA loans, and USDA loans offer below-market rates for eligible buyers.

📚 Homebuyer Education

Homebuyer counseling, financial literacy, credit improvement assistance, and purchase readiness training. Many programs offer counseling free or low-cost, plus incentives for completing education.

Who Can Apply for Homebuyer Assistance?

Eligible Applicants

  • First-time home buyers: Individuals/families purchasing primary residence for first time
  • Income-qualified buyers: Low-to-moderate income (often 80-120% area median income)
  • Credit-challenged buyers: Programs exist for limited credit history or prior issues
  • Minority homebuyers: Targeted programs supporting underrepresented groups
  • Special populations: Teachers, healthcare workers, rural buyers, seniors, veterans
  • Nonprofit organizations: Community development, homeownership nonprofits administering programs
  • Employers: Companies sponsoring employee homebuyer assistance

Common Program Requirements

  • First-time homebuyer status
  • Income limits (typically 80-120% AMI)
  • Good faith effort on down payment (usually 3%+ of purchase price)
  • Homebuyer education completion
  • Credit minimum (often 600-640 FICO) or alternative credit
  • Debt-to-income ratio requirements
  • Property location (often primary residence requirements)
  • Maximum purchase price limits (vary by program/location)

Major Federal First-Time Homebuyer Programs

FHA Loans

Federal Housing Administration insures loans with down payments as low as 3.5%. Lower credit score requirements (580+). Popular first-time buyer option. Loans available through approved lenders. Down payment assistance available through state programs.

VA Loans

Veterans Administration offers 0% down payment mortgages for veterans, active duty military, and surviving spouses. No PMI required. Often includes closing cost assistance. Separate down payment grants available from VA and state programs.

USDA Rural Loans

USDA Home Loan Program for rural homebuyers with 0% down payment option. Lower rates than FHA. Priority for low-income applicants. Down payment and closing cost assistance available through state and USDA programs.

Community Development Block Grants (CDBG)

HUD program providing cities/towns funds for down payment and closing cost assistance, homebuyer counseling, and workforce development. Each locality administers programs with varying income limits and assistance amounts.

Available Funding Opportunities

These grants support first-time homebuyer programs. Contact your state housing finance agency or local housing authority for application information.

2025 CDBG NOFA

Department of Housing and Community Development Housing Fixed deadline

Under the 2025 NOFA, approximately $27 million in federal funds for Community Development Block Grant will be made available to develop viable communities provisioning decent affordable housing, expan...

View Details Official Source →

2023 Homekey Tribal NOFA

Department of Housing and Community Development Housing Fixed deadline

The Department announces the availability of $75 million of Homekey Program grant funding through this Round 3 Notice of Funding Availability (NOFA) for Tribal Entities. This NOFA aims to sustain and ...

View Details Official Source →

HOME Program - City Of Chicago

U.S. Department of Housing and Urban Development Rolling deadline

Formula grants to states and localities to fund housing activities including building, buying, and rehabilitating affordable housing. Administered by City Of Chicago serving City Of Chicago....

View Details Official Source →

Showing 50 of 688 grants

Browse All Grants

Frequently Asked Questions

How much down payment assistance is available?

Highly variable by program: 3%-10% down payment grants from CDBG, state homebuyer programs. Closing cost assistance: $2,000-$15,000+. VA and USDA offer 0% down options (no down payment needed). FHA requires 3.5% (sometimes assistance available). Some areas have employer-sponsored programs offering $5,000-$25,000 for teachers, healthcare workers, etc.

What credit score is needed for first-time homebuyer programs?

Traditional mortgages: 620+ FICO. FHA: 580+. Some alternative credit programs: 550-580. VA loans: Often flexible with credit issues if service record is strong. Many programs allow alternative credit (rent, utilities, insurance payments) if credit history is limited. Homebuyer education completion can help compensate for lower credit scores.

How much income can I earn and still qualify?

Most programs limit income to 80-120% of area median income (varies significantly by location). A family in a high-cost urban area might have higher income limits (e.g., $150,000) vs. rural areas ($60,000). Check HUD's Area Median Income (AMI) for your location at huduser.gov. Self-employment income has additional documentation requirements.

Can I use grants for property improvements?

Down payment and closing cost grants must be used for purchase. Some programs allow funds for required repairs to pass inspection. Separate rehabilitation grants exist for home improvements after purchase (HomeStyle loans, Property Assessed Clean Energy - PACE, etc.). Ask your housing counselor about repair grants available in your state.

What if I have limited credit history?

Many first-time homebuyer programs accommodate limited credit. FHA loans work with 580+ scores. Rent and utility payment history can count as alternative credit. Homebuyer education completion often strengthens applications. Having a co-signer with good credit helps. Increasing your credit score before applying improves terms/rates.

Are there employer homebuyer assistance programs?

Yes! Teachers, healthcare workers, police, and other public service professionals often get employer assistance or dedicated programs. Tech companies, some large corporations provide homebuyer assistance (Google, Facebook offer programs). Military (all branches) have extensive benefits. Check with your employer HR/benefits department about homebuyer assistance or employer partnerships with homebuyer programs.

Essential Resources for First-Time Homebuyers

🏢 HUD Counseling Agencies

Free homebuyer counseling from HUD-approved nonprofits nationwide. Helps with down payment grants, credit improvement, and mortgage selection. Find local counselor at hud.gov/homebuyers. Often required for down payment grant eligibility.

🏛️ State Housing Finance Agencies

Each state operates housing finance agency with down payment assistance, affordable mortgage programs, and homebuyer education. Find yours at NCSHA (National Council of State Housing Agencies) member directory. State programs often easier to access than federal.

🏘️ Local Housing Authorities

City and county housing authorities administer CDBG, HOME, and local homebuyer programs. Often have tailored programs for local markets. Best source for understanding local down payment assistance, closing cost help, and special programs for your area.

💳 Credit Unions & Community Banks

Many offer first-time homebuyer programs, down payment assistance, and flexible lending options not available at big banks. Often partner with nonprofits for down payment grants and homebuyer education. May offer employee/member special programs.

Related Grant Resources

Grants for Home Repairs Grants for Homeless Services Housing Grants for Single Moms Browse All Grants

Ready to Buy Your First Home?

Explore our complete database of 4230 federal, state, and local grants and programs to find down payment assistance and homebuyer support opportunities.

Browse All Grants