Coming up with a down payment on a home — especially if it’s your first — can feel impossible. But you don’t have to do it by yourself: There are many first-time homebuyer grants that can help. These programs are offered by banks and nonprofit organizations, as well as state and local governments.

Funds from a first-time homebuyer grant can help you cover a down payment on a home, as well as closing costs. And because the money is a grant, you don’t have to pay it back.

First-time homebuyer grants differ from other types of down payment assistance that require you to repay the funds or meet certain requirements to have the funds forgiven. They also differ from affordable mortgage programs that come with perks like a lower mortgage rate or lower mortgage insurance premiums.

First-time homeowner grants tend to be geared toward low- to moderate-income borrowers. Generally speaking, households that earn 80% or less of their area median income (AMI) qualify as “low-income,” and households that earn more than 80% and up to 100% of the AMI qualify as “moderate income.” Fannie Mae has an AMI lookup tool to find yours.

Beyond income limits, most grant programs share a few common requirements, including:

Home price limits: These limits vary based on your state or local housing market.

Borrower contribution: Buyers must typically chip in some cash — often either 1% of the purchase price or $1,000, whichever is greater.

Residency status: Most grant programs require the home you’re buying to be your primary residence, not a rental or a second home.

Homebuyer education: Many grant programs require you to complete a homebuyer education course before receiving the funds.

The nonprofit National Homebuyers Fund sponsors down payment and closing cost grants for the purchase or refinance of a primary residence that can total up to 5% of your home’s purchase price. You don’t have to be a first-time homebuyer to qualify, but you do need to find a mortgage lender that participates in the program and forgives the funding. You can call the organization at 866-643-4968 for help finding local lenders.

Bank of America offers two grant options to help homebuyers in certain areas with a down payment and closing costs: the America’s Home Grant and Down Payment Grant programs, both of which are available in select markets throughout the U.S. The America’s Home Grant provides up to $7,500 in lender credits for closing costs, while the Down Payment Grant provides up to $10,000 in down payment help. You’ll have to get your mortgage from Bank of America, however, and the Down Payment Grant could be counted as taxable income.

The Chase Homebuyer Grant is available to homebuyers in select areas of the U.S. The program provides grants of up to $5,000 that apply first toward buying down your interest rate, then toward lender fees, and then toward a down payment. You can qualify for the Homebuyer Grant with Chase’s DreaMaker loan, or a conventional, FHA or VA mortgage.

Wells Fargo offers two types of assistance grants to eligible buyers in certain areas: down payment help through the Homebuyer Access grant and the Dream. Plan. Home. credit for closing costs. The former provides up to $10,000 for low- to moderate-income borrowers, and the latter provides up to $5,000 to low-income borrowers. As with other grants offered by banks and lenders, you’ll need to get your mortgage from Wells Fargo to qualify. You can check your eligibility on the Wells Fargo website.

If you’re getting a HomeReady or Home Possible conventional loan, you might qualify for a $2,500 credit if your income is 50% or less of your area’s median income. At least one borrower must be a first-time homebuyer. The credit is available for eligible loans through Feb. 28, 2027, and can be used toward your down payment or closing costs.

Many states and cities offer grant programs for first-time homebuyers. Check with your state’s housing finance authority or real estate agent for more.

A local mortgage lender might also be able to point you toward free money. Here are some examples:

First Federal Bank of Kansas City offers eligible buyers a grant of up to $2,500.

The Federal Home Loan Bank of New York offers up to $30,000 in grant funds to first-time homebuyers.

Tri Counties Bank in California offers four-to-one matching grants of as much as $32,000.

First-time homebuyer programs by state

State

Programs

Alabama

Alabama Housing Finance Authority

Alabama mortgage lenders

Alaska

Alaska Housing Finance Corporation

Alaska mortgage lenders

Arkansas

Arkansas Development Finance Authority

Arkansas mortgage lenders

Arizona

Arizona Industrial Development Authority

Arizona mortgage lenders

California

California Housing Finance Agency

California mortgage lenders

Colorado

Colorado Housing and Finance Authority

Colorado mortgage lenders

Connecticut

Connecticut Housing Finance Authority

Connecticut mortgage lenders

Delaware

Delaware State Housing Authority

Delaware mortgage lenders

District of Columbia

District of Columbia Housing Finance Agency

District of Columbia mortgage lenders

Florida

Florida Housing Finance Corporation

Florida mortgage lenders

Georgia

Georgia Department of Community Affairs

Georgia mortgage lenders

Hawaii

Hawaii Housing Finance & Development Corporation

Hawaii mortgage lenders

Idaho

Idaho Housing and Finance Association

Idaho mortgage lenders

Illinois

Illinois Housing Development Authority

Illinois mortgage lenders

Indiana

Indiana Housing & Community Development Authority

Indiana mortgage lenders

Iowa

Iowa Finance Authority

Iowa mortgage lenders

Kansas

Kansas Housing Resources Corporation

Kansas mortgage lenders

Kentucky

Kentucky Housing Corporation

Kentucky mortgage lenders

Louisiana

Louisiana Housing Corporation

Louisiana mortgage lenders

Maine

Maine State Housing Authority

Maine mortgage lenders

Maryland

Maryland Department of Housing and Community Development

Maryland mortgage lenders

Massachusetts

Massachusetts Department of Housing and Community Development

Massachusetts mortgage lenders

Michigan

Michigan State Housing Development Authority

Michigan mortgage lenders

Minnesota

Minnesota Housing Finance Agency

Minnesota mortgage lenders

Mississippi

Mississippi Home Corporation

Mississippi mortgage lenders

Missouri

Missouri Housing Development Commission

Missouri mortgage lenders

Montana

Montana Housing

Montana mortgage lenders

Nebraska

Nebraska Investment Finance Authority

Nebraska mortgage lenders

Nevada

Nevada Housing Division

Nevada mortgage lenders

New Hampshire

New Hampshire Housing Finance Authority

New Hampshire mortgage lenders

New Jersey

New Jersey Housing and Mortgage Finance Agency

New Jersey mortgage lenders

New Mexico

New Mexico Mortgage Finance Authority

New Mexico mortgage lenders

New York

State of New York Mortgage Agency

New York mortgage lenders

North Carolina

North Carolina Housing Finance Agency

North Carolina mortgage lenders

North Dakota

North Dakota Housing Finance Agency

North Dakota mortgage lenders

Ohio

Ohio Housing Finance Agency

Ohio mortgage lenders

Oklahoma

Oklahoma Housing Finance Agency

Oklahoma mortgage lenders

Oregon

Oregon Housing and Community Services

Oregon mortgage lenders

Pennsylvania

Pennsylvania Housing Finance Agency

Pennsylvania mortgage lenders

Rhode Island

Rhode Island Housing

Rhode Island mortgage lenders

South Carolina

South Carolina State Housing Finance & Development Authority

South Carolina mortgage lenders

South Dakota

South Dakota Housing Development Authority

South Dakota mortgage lenders

Tennessee

Tennessee Housing Development Agency

Tennessee mortgage lenders

Texas

Texas Department of Housing and Community Affairs

Texas mortgage lenders

Utah

Utah Housing Corporation

Utah mortgage lenders

Vermont

Vermont Housing Finance Agency

Vermont mortgage lenders

Virginia

Virginia Housing

Virginia mortgage lenders

Washington

Washington State Housing Finance Commission

Washington mortgage lenders

West Virginia

West Virginia Housing Development Fund

West Virginia mortgage lenders

Wisconsin

Wisconsin Housing and Economic Development Authority

Wisconsin mortgage lenders

Wyoming

Wyoming Community Development Authority

Wyoming mortgage lenders

Available to law enforcement officers, teachers, firefighters and emergency medical technicians, the Good Neighbor Next Door program is overseen by the U.S. Department of Housing and Urban Development and offers a 50% discount on homes in designated revitalization areas. There is a three-year residency requirement to receive the discount.

HomePath comes courtesy of Fannie Mae. Through this program, you can buy a Fannie Mae-owned property, often foreclosures that might need significant work. If you buy using an HFA Preferred loan — issued through your state’s housing finance agency — you can qualify for up to 3% of the home value in closing cost assistance.

The application process for first-time homebuyer grants varies depending on the funding organization, but in general, the following steps will apply to most if not all of them:

Research. Search for grants you might qualify for from local and state governments, as well as nonprofits and lenders.

Improve your credit score. Many first-time homebuyer grants require a minimum credit score. You can improve your score by making on-time payments and paying down debt.

Collect documentation. To apply, you must typically provide extensive documentation of your income and assets, including at least two months of recent pay stubs, in addition to employment verification.

Apply. Follow the organization’s application instructions to apply for the grant.

If you can’t find grants for first-time homebuyers that work for you, you aren’t out of luck just yet. There are other low-cost first-time homebuyer loans and programs. You might also qualify for a forgivable loan, which could end up functioning much like a grant. That is, if you meet certain requirements, you never have to repay the loan.

Here are a few options to explore:

DPA second mortgages: Down payment assistance (DPA) second mortgages are available through many state housing finance agencies. In a DPA second mortgage program, you’ll apply for a 30-year mortgage to finance the home and then another, smaller mortgage to help with the down payment or closing costs. Just like the first mortgage, this second loan comes with an interest rate — although it might be lower than the first — and you repay the balance over time.

DPA deferred-payment loans: Instead of requiring you to immediately start paying back the down payment assistance funds, some programs allow you to defer these payments until you sell your home, refinance or pay off your mortgage. The assistance won’t accrue interest in the meantime, so the amount you owe won’t grow.

DPA forgivable loans: Forgivable loans are the closest cousin to homebuying grants because you may not need to pay the money back, provided you live in the home long enough. For example, you might be able to borrow $5,000 toward a down payment, and the loan balance is reduced every month over 10 years. If you stay in the home for 10 years, it’ll be completely forgiven. If you move within the 10 years, you’ll need to pay back a portion of the money.

Individual Development Accounts (IDAs): IDAs are matched savings accounts typically designed for low-income individuals. IDAs are offered through some public housing organizations and private nonprofits and usually provide a dollar-for-dollar match, up to a specific amount, for savings goals, such as a down payment and closing costs.

Which loan is best for first-time homebuyers?

The best first-time homebuyer loan for you depends on your personal situation. For example, if you have a credit score lower than the minimum 620 needed for a conventional loan, you might explore an FHA loan.

Who qualifies as a first-time homebuyer?

Most first-time homebuyer grants, mortgages and other assistance programs define a first-time homebuyer as someone who has never owned a home before or who has not owned a home in the past three years.

Can I combine multiple grants and assistance programs?

Whether you can combine grants and assistance programs depends on the program. For instance, many state and local government grants are meant to work together. However, other programs specify that only one type of assistance is allowed. Contact the agency that runs the grant program for details.

Are there grants available for first-time home buyers with disabilities?

Yes, there are several homeownership grants available for those with disabilities offered at the state and local level. Several programs also specialize in helping disabled homeowners and homebuyers adapt homes to meet their needs. If you’re a disabled veteran, you may qualify for more grants and assistance, such as the Specially Adapted Housing (SAH) grant.