Buyer guides
First-Time Home Buyer Grants: A Plain-English Guide
Grants and down payment assistance (DPA) can knock thousands off what you bring to closing, but the programs are scattered across federal, state, and local agencies. Here's how they work and where to look.
What is a first-time home buyer grant?
A first-time home buyer grant is money, typically for your down payment or closing costs, that you don't have to repay if you meet program rules. Grants come from federal agencies, state housing finance agencies (HFAs), counties, cities, employers, and nonprofits. Most are paired with an approved mortgage and may require living in the home for a set number of years.
Federal programs to know
There is no single federal 'first-time buyer grant,' but FHA, VA, and USDA loans reduce the cash you need at closing. HUD-approved housing counseling agencies often connect buyers to grant programs. Mortgage Credit Certificates (MCCs) issued by state HFAs give first-time buyers a federal tax credit on a portion of mortgage interest, freeing up cash month after month.
State and local programs
Every state has a Housing Finance Agency that runs down payment assistance (DPA), grants, and forgivable second mortgages. Cities and counties add their own. Eligibility usually depends on income limits, purchase-price caps, the property's location, and whether you complete a homebuyer education course. Public-service employees (teachers, nurses, first responders, veterans) often qualify for extra programs.
How to qualify
Most grants require you to be a true first-time buyer (no ownership in the past three years), meet income limits for your area, contribute a small amount of your own funds, and complete a HUD-approved homebuyer education course. The grant is layered on top of a primary mortgage, so you'll still need to qualify for that loan with a participating lender.
Find programs in your state
The Down Payment Assistance finder inside the First-Time Homebuyer Toolkit matches your state, income, and target purchase price to current grant and DPA programs, including forgivable second mortgages, deferred-payment loans, and outright grants. It also estimates how much you'd actually receive and how it changes your monthly payment.
Match yourself to real DPA programs
The toolkit's DPA finder pulls current programs for your state and estimates what you'd actually receive, no email wall, no lender referrals.