First-Time Home Buyer Grants: State-by-State Guide for 2026
Free money for buying a home exists — and most first-time buyers never claim it. State housing finance agencies, local governments, and nonprofit organizations collectively administer more than 2,300 assistance programs across the country, and a significant number of them include outright grants that do not need to be repaid.
This guide covers how grants work, what the typical eligibility requirements look like, and a regional breakdown of notable programs by state for 2026.
What Is a First-Time Home Buyer Grant?
A grant is money given to help cover your down payment or closing costs with no repayment obligation. Unlike a loan, you do not owe the money back even if you sell the home or refinance.
Not all assistance is structured as a true grant. Some programs use:
- Forgivable loans: Technically a loan, but the balance is forgiven — usually 20% per year for five years, or 100% after a set period if you stay in the home
- Deferred payment loans: No payments due until you sell, refinance, or pay off the mortgage
- Matching programs: Some programs match your savings dollar-for-dollar up to a cap
For practical purposes, forgivable loans function like grants as long as you remain in the home for the required period, which is typically three to five years.
Who Typically Qualifies?
While requirements vary by program, most grants share common eligibility factors:
- First-time buyer status (no principal residence ownership in the past three years)
- Income at or below a percentage of area median income (AMI), typically 80% to 120%
- Purchase price below a program cap
- Minimum credit score (often 620-640)
- Owner-occupancy requirement — the home must be your primary residence
- Homebuyer education course completion
Income limits are set locally and updated annually. A household income that disqualifies you in an expensive metro may qualify easily in a rural county in the same state.
Regional Overview of Notable Programs
Northeast
New York — The State of New York Mortgage Agency (SONYMA) offers the Achieving the Dream program with down payment assistance of up to 3% of the loan amount for income-qualified buyers. SONYMA also partners with localities on additional grant programs.
Massachusetts — MassHousing’s Down Payment Assistance program provides up to $50,000 in select cities and $30,000 statewide. The assistance is a deferred, no-interest loan forgiven after 15 years.
Pennsylvania — The Pennsylvania Housing Finance Agency (PHFA) offers the Keystone Advantage Assistance Loan, providing up to 4% of the purchase price (maximum $6,000) as a zero-interest second mortgage.
New Jersey — NJHMFA’s First-Time Homebuyer Mortgage Program offers down payment and closing cost assistance of $10,000 as a forgivable loan forgiven after five years.
Southeast
Florida — Florida Housing’s HFA Preferred and HFA Advantage programs offer down payment assistance of 3-5% of the loan amount. The Florida Hometown Heroes program provides up to $35,000 in assistance for community workforce employees.
Georgia — The Georgia Dream Homeownership Program offers $10,000 in down payment assistance, increasing to $12,500 for borrowers in certain professions or targeted areas.
North Carolina — NC Home Advantage Mortgage provides down payment assistance of up to 3% of the loan amount. A separate program offers $15,000 in down payment assistance for buyers in targeted counties.
Virginia — VHDA’s Granting Freedom program provides grants of up to $40,000 for disabled veterans to make accessibility modifications. The standard Virginia Housing down payment assistance grant offers up to 2.5% of the purchase price.
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Midwest
Illinois — IHDA’s Opening Doors program offers $6,000 in down payment and closing cost assistance as a forgivable loan. The SmartBuy program covers student loan balances up to $40,000 for buyers who complete their purchase.
Ohio — The Ohio Housing Finance Agency (OHFA) offers the Your Choice! Down Payment Assistance program, which provides 2.5% or 5% of the home’s purchase price, either forgivable or repayable.
Michigan — MSHDA’s MI Home Loan program offers up to $10,000 in down payment assistance as a zero-interest loan. The program is available statewide and does not require first-time buyer status in targeted areas.
Minnesota — Minnesota Housing’s Start Up program offers down payment and closing cost loans. Monthly Payment Loan provides up to $17,000; Deferred Payment Loan provides up to $12,000.
South and Mountain West
Texas — The Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA) each offer programs with down payment assistance of 3-5% for income-qualified buyers. The Homes for Texas Heroes program targets teachers, first responders, veterans, and healthcare workers.
Colorado — CHFA’s SmartStep and SectionEight programs offer down payment assistance of up to 3% of the loan amount. Colorado also operates the CHFA HomeAccess program for buyers with permanent disabilities.
Arizona — Home Plus program offers down payment assistance of 3-5% of the loan amount with no income limits at certain assistance levels. Some local jurisdictions layer additional grants on top.
New Mexico — MFA’s FirstHome program offers first mortgage and Closing Cost and Down Payment Assistance (CODA) up to $8,000.
West Coast and Pacific
California — CalHFA offers the MyHome Assistance Program, a deferred-payment junior loan of up to 3.5% of the purchase price. The CalHFA Zero Interest Program (ZIP) provides additional closing cost assistance. Some California counties also operate local grant programs that stack on top of state programs.
Washington — Washington State Housing Finance Commission (WSHFC) offers down payment assistance programs ranging from $10,000 to $55,000 depending on the program and location. The Home Advantage program is available statewide.
Oregon — Oregon Housing and Community Services offers the Oregon Bond Residential Loan program with down payment assistance. Portland’s local programs include the Portland Housing Bureau’s programs targeting low-income buyers.
How Grant Amounts Are Determined
Grant and assistance amounts vary based on:
- Location: Urban areas with higher home prices often have larger assistance amounts
- Income level: Lower-income buyers may qualify for larger grants
- Profession: Many states offer enhanced programs for teachers, first responders, healthcare workers, and veterans
- Program funding: Many programs are funded by bond issuances and run out of money during high-demand periods
Because funding is limited, applying early in the year is generally advisable. Programs that exhaust their allocation do not accept new applicants until new funding is approved.
How to Find Programs in Your Area
Beyond state programs, many cities and counties operate local grant programs. Strategies to find them:
- Visit your state HFA website: Every state has one; a search for “[state name] housing finance agency” will find it
- Use HUD’s local homebuyer programs tool: HUD maintains a directory of approved counseling agencies who track local programs
- Ask your mortgage lender: Lenders who specialize in first-time buyers typically know the programs available in their market
- Contact your city’s housing department: Many municipalities run programs funded by federal Community Development Block Grants (CDBG)
Stacking Programs for Maximum Benefit
Many buyers do not realize that multiple programs can often be combined. A common stack might look like:
- FHA loan (primary mortgage)
- State HFA below-market interest rate
- State down payment assistance grant
- Mortgage credit certificate (annual tax credit)
Used together, these programs can reduce both upfront costs and the monthly payment simultaneously. Not all programs allow stacking — confirm compatibility before applying.
For a full breakdown of how down payment assistance programs work with different loan types, see down payment assistance programs. Also review first-time home buyer programs 2026 for a broader overview of what is available.
What Happens If You Sell Early?
For forgivable loans, selling or refinancing before the forgiveness period ends typically triggers repayment of the remaining balance. The repayment amount is prorated — if a five-year program requires you to repay $10,000 and you sell after three years, you would repay $4,000 (two years remaining out of five).
True grants with no repayment provisions are less common but do exist, particularly in programs targeting distressed neighborhoods or specific workforce populations.
How These Programs Interact With Your Credit
Most grant programs require a minimum credit score. If yours needs work before you apply, the minimum credit score to buy a house guide explains what each loan type requires, and how to improve your credit score fast covers the fastest ways to build your score before applying.
Homebuyer Education Requirements
Most grant programs require completion of a HUD-approved homebuyer education course. These courses cover budgeting, the mortgage process, and homeownership responsibilities. They typically take four to eight hours and cost between zero and $125. Many are available online.
Completing homebuyer education is also required for Fannie Mae HomeReady and Freddie Mac Home Possible loans, so buyers using those programs will need to complete it regardless.
For a full walkthrough of all the steps before and after applying for these programs, the first-time home buyer checklist covers the entire process from credit preparation through closing.
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