First-Time Home Buyer Grants by State: 2026 Guide

First-time home buyer grants by state are one of the best-kept secrets in real estate. Every state in the country has programs designed to help buyers cover down payments and closing costs — and unlike loans, grants do not have to be repaid. If you qualify, this is essentially free money toward your home purchase.

This guide covers how state grants work, what real programs look like in more than a dozen states, how to apply step by step, and how to combine multiple programs to maximize your assistance.

Grants vs. Forgivable Loans vs. Deferred Loans: What Is the Difference?

Not all “assistance” is created equal. Before diving into state programs, it helps to understand the three main types:

Grants

A true grant is money you never have to repay, period. Some grants have an occupancy requirement — you must stay in the home for a set period (often three to five years) or the grant converts to a loan. But if you stay in the home as required, it is free money. These are the most valuable type of assistance.

Forgivable Loans

A forgivable loan is structured as a second mortgage but is gradually forgiven over time — typically three to ten years. If you stay in the home for the full forgiveness period, you owe nothing. If you sell, refinance, or move before the period ends, you repay a prorated portion. Functionally similar to a grant if you plan to stay long-term.

Deferred Payment Loans

A deferred loan must eventually be repaid, but not until you sell the home, refinance, or pay off your primary mortgage. These loans typically carry 0% or very low interest and no monthly payment. When you eventually sell, you repay the loan balance out of your equity. They reduce your upfront burden but are not free money in the long run.

For a broader overview of how these programs work together, see our full guide to down payment assistance programs 2026.

National Programs Available in Every State

Before looking at state-specific grants, note that several programs are available nationwide:

• National Homebuyers Fund (NHF): Grants up to 5% of the loan amount, available in most states through participating FHA and conventional lenders. No repayment required. Income limits apply.
• USDA loans: 100% financing for rural and suburban areas — effectively zero down. See our USDA loan requirements 2026 guide.
• VA loans: 100% financing for veterans and active-duty service members. Our VA loan vs FHA loan comparison explains the differences.
• HUD HOME program: Federal funds distributed to states and localities for DPA programs — the source of many local grants.

Now let us look at what specific states offer.

State Grant Programs: Real Details for 2026

California — CalHFA MyHome Assistance Program

The California Housing Finance Agency offers the MyHome Assistance Program, which provides a deferred-payment junior loan of up to 3.5% of the purchase price for FHA loans (or 3% for conventional). This can be used for the down payment, closing costs, or both.

• Who qualifies: First-time buyers (no homeownership in three years) who meet CalHFA income limits for their county
• Income limits: Vary by county — significantly higher in high-cost areas like Los Angeles and the Bay Area
• Purchase price limits: Also county-specific; updated annually
• Homebuyer education: Required — must be completed before loan closing
• Repayment: Due when you sell, refinance, transfer title, or pay off the first mortgage
• Website: calhfa.ca.gov

California also offers the CalHFA Zero Interest Program (ZIP) for closing cost assistance, which can be layered on top of MyHome. Buyers in California can effectively stack two CalHFA programs to cover both their down payment and closing costs.

Texas — TDHCA My First Texas Home

The Texas Department of Housing and Community Affairs offers My First Texas Home, which combines a 30-year fixed-rate mortgage with down payment assistance of up to 5% of the loan amount as a 0%, no-monthly-payment second loan.

• Who qualifies: First-time buyers (or buyers in targeted areas) with incomes at or below program limits by county
• Loan types: FHA, VA, USDA, or conventional (Fannie Mae HFA Preferred)
• Credit score minimum: 620
• Repayment of DPA: Due when the first mortgage is paid off, sold, or refinanced
• Homebuyer education: Required
• Website: tdhca.state.tx.us

Texas also has the Texas Mortgage Credit Certificate (MCC) program, which converts a portion of mortgage interest into a tax credit — up to $2,000 per year — which can be stacked with the My First Texas Home program.

Florida — Florida Housing First Time Homebuyer Programs

Florida Housing Finance Corporation offers the Florida Assist program — a deferred second mortgage of up to $10,000 at 0% interest for down payment and closing costs on FHA, VA, USDA, or Fannie Mae HFA Preferred loans.

• Who qualifies: First-time buyers statewide meeting income and purchase price limits by county
• Credit score minimum: Varies by loan type — typically 640 for FHA
• Repayment: Deferred until sale, transfer, refinance, or payoff of the first mortgage
• Homebuyer education: Required online course
• Website: floridahousing.org

Florida also offers the Hometown Heroes program for essential workers (first responders, educators, healthcare workers, and military) with up to 5% of the first mortgage amount — a higher benefit than the standard program.

New York — SONYMA Programs

The State of New York Mortgage Agency (SONYMA) offers several programs including the Achieving the Dream Mortgage Program for lower-income buyers and the Low Interest Rate Program for moderate-income buyers. Down payment assistance comes through the SONYMA Down Payment Assistance Loan — up to 3% of the purchase price (maximum $15,000) as a 0% interest deferred loan.

• Income limits: Vary by region — higher in New York City and surrounding counties
• Purchase price limits: Apply and vary by county
• Achieving the Dream: Targets buyers at or below 80% AMI with a lower interest rate
• Homebuyer education: Required
• Website: hcr.ny.gov/sonyma

Georgia — Georgia Dream Homeownership Program

The Georgia Department of Community Affairs runs Georgia Dream, which offers down payment assistance of $10,000 to $12,500 as a 0%, 0-monthly-payment second mortgage. Priority buyers (public protectors, educators, healthcare workers, and military) receive $12,500.

• Who qualifies: First-time buyers or buyers in targeted areas with household income at or below program limits
• Income limits: Generally $80,000 to $100,000 depending on family size and county
• Purchase price maximum: $350,000 (as of recent program terms — check for updates)
• Credit score minimum: 640
• Homebuyer education: Required in-person or online
• Repayment: Due when you sell, refinance, or no longer occupy as primary residence
• Website: dca.ga.gov

Colorado — CHFA Programs

The Colorado Housing and Finance Authority (CHFA) offers down payment assistance as either a grant (up to 3% of the first mortgage, never repaid) or as a second mortgage loan (up to 4% at 0% interest, repaid when you sell or refinance). The grant option is the more favorable of the two.

• Loan types: CHFA first mortgage paired with DPA
• Income limits: Vary by county and household size
• Purchase price limits: Apply statewide
• Credit score minimum: 620
• Homebuyer education: Required
• Website: chfainfo.com

Illinois — IHDA Access Programs

The Illinois Housing Development Authority (IHDA) offers the Access Forgivable, Access Deferred, and Access Repayable programs. The most generous is Access Forgivable — $6,000 in down payment and closing cost assistance forgiven over ten years (10% forgiven per year). If you stay for ten years, you owe nothing.

• Who qualifies: First-time buyers meeting income and purchase price limits
• Income limits: Typically around $99,000 to $125,000 depending on location and household size
• Purchase price limits: Apply and vary by county
• Credit score minimum: 640
• Homebuyer education: Required
• Website: ihda.org

Arizona — Home Plus Program (ADOH)

Arizona’s Home Plus program offers down payment assistance of 0% to 5% of the loan amount in the form of a three-year forgivable second mortgage — meaning if you stay in the home for three years, the assistance is completely forgiven. This is one of the more borrower-friendly structures in the country.

• Income limit: $122,100 (statewide, not county-specific — check current limits)
• Purchase price limit: Up to $467,000 for conventional; FHA conforming limits for FHA loans
• Loan types: FHA, VA, USDA, or conventional
• Homebuyer education: Required online
• Website: azhousing.gov

Washington State — WSHFC Programs

The Washington State Housing Finance Commission (WSHFC) offers multiple DPA options, the most notable being the Home Advantage program with down payment assistance as a second mortgage at 0% interest, and the Opportunity program for lower-income buyers in targeted areas. Assistance amounts vary by program and income level.

• Income limits: Vary by county and program — higher in King, Pierce, and Snohomish counties
• Homebuyer education: Required — WSHFC offers free seminars
• Repayment: Due when you sell, refinance, or no longer occupy
• Website: wshfc.org

Michigan — MSHDA Down Payment Assistance

The Michigan State Housing Development Authority offers down payment assistance of up to $10,000 for most of the state and up to $7,500 in certain ZIP codes, structured as a 0% interest second mortgage due when you sell or refinance.

• Income limits: Vary by household size — generally around $72,000 to $99,000
• Purchase price limit: Around $224,000 statewide (verify current limits)
• Credit score minimum: 640
• Homebuyer education: Required
• Website: michigan.gov/mshda

Ohio — OHFA First-Time Homebuyer Program

The Ohio Housing Finance Agency offers the YourChoice! program with down payment assistance of 2.5% or 5% of the purchase price as a forgivable second mortgage. Choose 2.5% and the loan is forgiven after seven years. Choose 5% and it is due when you sell or refinance.

• Income limits: Vary by county and household size
• Loan types: FHA, VA, USDA, or conventional
• Credit score minimum: 640
• Homebuyer education: Required
• Website: ohiohome.org

Pennsylvania — PHFA Grant and Keystone Advantage

The Pennsylvania Housing Finance Agency (PHFA) offers a $500 grant (the PHFA Grant, no repayment required) plus the Keystone Advantage Assistance Loan — a second mortgage of up to 4% of the purchase price or $6,000, whichever is less, at 0% interest repaid in equal monthly installments over 10 years.

• Income limits: Vary by county and household size
• Homebuyer education: Required
• Credit score minimum: 660
• Website: phfa.org

Virginia — VHDA Down Payment Assistance Grant

The Virginia Housing Development Authority offers a down payment assistance grant of up to 2.5% of the purchase price — and it is a true grant, no repayment required. This is one of the more straightforward programs in the country. It is available statewide through participating lenders.

• Income limits: Vary by household size and region
• Purchase price limits: Apply statewide
• Credit score minimum: 620
• Homebuyer education: Required online
• Website: virginiahousing.com

North Carolina — NCHFA NC Home Advantage Mortgage

North Carolina Housing Finance Agency offers down payment assistance of up to 3% of the loan amount as a forgivable second mortgage — forgiven at 20% per year starting in year 11, fully forgiven after 15 years if you stay in the home. This is paired with a competitive first mortgage rate.

• Income limits: Up to $134,000 for most counties (verify current limits)
• Purchase price limit: $385,000 (new construction up to $385,000)
• Loan types: FHA, VA, USDA, or conventional
• Homebuyer education: Required
• Website: nchfa.com

How to Apply for State Grants: Step by Step

Step 1: Research Your State’s HFA

Start at ncsha.org to find your state’s HFA. Go directly to the HFA website and look at their current programs. Note the income limits, purchase price limits, and credit score requirements for your county. Programs change — always use the official HFA site, not third-party summaries.

Step 2: Confirm Your Eligibility

Check that you meet the first-time buyer definition, income limits, and purchase price limits. If you are on the income boundary, check whether the HFA adjusts limits for household size — many programs allow higher limits for larger households.

Step 3: Find a Participating Lender

State HFA programs are only available through approved participating lenders. The HFA website will have a searchable list. Not every bank qualifies. If your current bank is not on the list, you will need to work with one that is.

Step 4: Complete Homebuyer Education

Almost every state grant program requires a HUD-approved homebuyer education course. Do this early — it takes 6 to 8 hours and must be completed before closing. Most are available online for $75 to $125.

Step 5: Get Pre-Approved Through the Participating Lender

Apply for your first mortgage through the participating lender and specifically ask to be considered for the state DPA program. The lender handles the paperwork and coordinates with the state agency. Read our guide on best mortgage lenders for first-time buyers 2026 for lenders known to offer these programs.

Step 6: Make an Offer and Close

Once pre-approved, continue through the home buying process as normal. The DPA funds are delivered at closing, applied directly to your down payment or closing costs. You do not receive a check — the lender coordinates the transfer.

Grant Stacking: Can You Combine Multiple Programs?

In many cases, yes — and this is where buyers leave the most money on the table. “Stacking” means combining multiple assistance programs on the same home purchase. Common combinations include:

• State HFA DPA (second mortgage) + local city grant (third lien in some cases)
• State HFA DPA + Mortgage Credit Certificate (MCC) for ongoing tax savings
• State HFA DPA + National Homebuyers Fund grant
• USDA zero-down loan + state DPA for closing costs

Not all programs allow stacking, and lenders must approve combining liens. The key is to ask — both the DPA program administrator and your lender — whether layering is allowed for the specific programs you are considering.

Homebuyer Education Requirements

If one requirement shows up in almost every state grant program, it is the homebuyer education course. Most programs require completion of a HUD-approved course before closing. These courses cover:

• Understanding the home buying process from start to finish
• How mortgages work, including interest rates and loan types
• Budgeting for homeownership costs beyond the mortgage
• How to maintain a home and avoid deferred maintenance problems
• What to do if you fall behind on payments

Approved providers include eHomeAmerica, Framework, and many local housing counseling agencies. Expect to pay $75 to $125 and spend 6 to 8 hours. You receive a certificate of completion that you submit to your lender. Start early — do not wait until you are under contract to think about this.

Frequently Asked Questions

Do I have to be a first-time buyer to get a state grant?

Most programs define first-time buyer as anyone who has not owned a primary residence in the past three years. So if you owned a home years ago but have been renting since, you likely qualify. Some programs in federally designated “targeted areas” have no first-time buyer requirement at all.

Are state grants taxable income?

Generally, down payment grants are not considered taxable income because they are used to purchase an asset (your home). However, tax law is specific to your situation — consult a tax professional, especially if you receive a large grant amount.

What happens if I sell my house after receiving a state grant?

It depends on whether you received a true grant, a forgivable loan, or a deferred loan. True grants with no strings attached let you sell whenever you want. Forgivable loans require you to repay a portion if you sell before the forgiveness period ends. Deferred loans must be repaid from your sale proceeds. Read your DPA agreement carefully before signing.

Do state grants affect my mortgage approval?

DPA that comes as a second loan affects your DTI calculation only if it has a monthly payment. Most deferred or forgivable seconds have no monthly payment, so they do not increase your debt load for qualifying purposes. Confirm with your lender how the DPA will be treated in underwriting.

How long does it take to receive state grant funds?

DPA funds are disbursed at closing — you do not wait for a check. The timing is built into the closing process. The only delay risk is if the program has a funding cap and runs out of money. Some state programs have waiting lists during busy periods. Apply as early in the process as possible.

For more on the home buying process, read our first-time home buyer checklist, our guide on how long it takes to buy a house, and our article on steps to buying a house.