How To Apply for Grants as a First-Time Home Buyer

Buying your first home is expensive, but there are federal, state, and local grants and assistance programs that can help with your down payment and closing costs. This article explains how people typically find and apply for those programs through official channels.

HowToGetAssistance.org is an informational site only; you must use official government or lender channels to check eligibility, apply, or track an application.

Fast Answer: How the Application Process Usually Works

Most first-time home buyer grants are run by state housing finance agencies (HFAs), local housing departments, or approved lenders, not by a single national office.

In most areas, the process looks like this:

Identify programs in your state or city.
Confirm you’re a qualifying “first-time buyer” and meet income, price, and credit rules.
Get pre-approved by a participating lender (often required).
Complete a homebuyer education course, if the program requires it.
Submit a grant or assistance application through the agency’s portal or your lender.
Provide supporting documents and wait for a decision before closing on the home.

State and local rules vary widely, so the specific forms, websites, and deadlines are different depending on where you live.

Does This Apply to Me? (Basic Eligibility Clues)

First-time home buyer grant rules differ by program, but several themes show up repeatedly.

You are more likely to qualify if:

You have not owned a home in the last 3 years. Many programs define this as “first-time.”
Your income is below a set limit for your county or metro area.
The home will be your primary residence (you live there, not rent it out).
You meet purchase price limits for the area.
You can qualify for a mortgage with an approved lender.

Many programs also require:

U.S. citizenship or certain eligible immigration statuses (varies by program).
A minimum credit score (often in the 620–660 range, but this is not universal).
Completion of a HUD-approved homebuyer education course.

If you are unsure whether you count as a first-time buyer, ask the housing agency or lender directly: “Do you use the 3-year rule to define first-time home buyers?”

Key Terms (Plain-Language)

Down payment assistance (DPA): Money or a loan to help cover the upfront cash you put toward the home.
Forgivable loan: A loan that may not have to be repaid if you stay in the home and meet rules for a set number of years.
Closing costs: Fees paid at the end of the home purchase (title, appraisal, lender fees, etc.).
Housing finance agency (HFA): A state or local government agency that manages home buyer assistance and affordable housing programs.

What You’ll Need Ready Before You Apply

Having documents ready speeds up both pre-approval and your grant application. Programs differ, but commonly required items include:

Proof of identity: Driver’s license, state ID, or other government-issued ID.
Proof of income: Recent pay stubs, W‑2s, sometimes tax returns (usually last 2 years).
Employment details: Employer name, address, and how long you’ve worked there.
Bank statements: Typically last 1–3 months, showing assets and savings.
Debt details: Student loans, credit cards, auto loans, and monthly payments.
Rental history: Lease agreements or proof of on-time rent payments (some programs check this).
Homebuyer education certificate: If you’ve already completed a HUD-approved course.

Real-world friction to watch for: A common reason applications get delayed is missing or outdated documents—especially tax returns, bank statements, and pay stubs—so it helps to create a single digital folder with current PDFs before starting any application.

If you’re self-employed or have variable income, you’ll typically need two years of tax returns and profit-and-loss information, and sometimes more explanation for large deposits in your bank account.

Quick Summary: Typical First-Time Buyer Grant Application

Find your state or local housing agency’s website.
Review first-time home buyer or DPA programs and eligibility.
Get pre-approved with a participating lender.
Complete required homebuyer education.
Submit grant/DPA forms with income and asset documentation.
Wait for written approval before finalizing your home purchase.

Your Next Steps: How to Actually Apply

1. Find the Right Official Office or Portal

Because programs are local, the first step is finding your state or local housing agency:

Go to the U.S. Department of Housing and Urban Development (HUD) “state information” page and select your state; this typically lists your state housing finance agency and housing resources.
- Search for: “HUD buying a home [your state]” or use the HUD state directory on Hud.gov.
On your state HFA or housing agency site, look for sections labeled “Homeownership,” “First-Time Home Buyer,” “Down Payment Assistance,” or “Programs.”
If you’re in a large city or county, check your city housing department or community development office website for local grants.

If you can’t find the right office, you can also dial 211 or visit the official 211 website and ask for: “State or local housing agency that manages first-time home buyer assistance.”

2. Review Program Details and Make Sure You Fit

Once you’ve found programs:

Read the eligibility page carefully. Note income limits, purchase price limits, and location boundaries (city, county, or statewide).
Check property type rules (single-family, condo, manufactured homes, etc.).
Look at grant type: Some are true grants; others are forgivable or low-interest loans.
Write down deadlines or timelines for applying, especially if funds are limited or first-come, first-served.

If something is unclear, you can call the housing agency and say: “I’m a potential first-time home buyer. Can you confirm which programs I might qualify for and how I should apply?”

3. Get Pre-Approved With a Participating Lender

Many first-time buyer grants must be used with certain lenders or loan products (for example, specific FHA, VA, or conventional loans processed by approved lenders):

Find the list of “participating lenders” or “approved lenders” on the program’s website.
Contact one or two lenders and request a mortgage pre-approval specifically mentioning the grant or DPA program.
Provide your income, credit, and asset documents. The lender will usually run a credit check.

What to expect next: If you’re pre-approved, the lender typically gives you a pre-approval letter and may start the grant or DPA application with you, or direct you to the agency’s online portal.

4. Complete Homebuyer Education (If Required)

Many grant programs require a HUD-approved homebuyer education course before you can receive funds:

Ask your housing agency or lender which courses are accepted.
Complete the course online or in person, and save your certificate.

Some programs require that all borrowers listed on the loan complete the course, not just one.

5. Submit the Grant or Assistance Application

How you apply varies:

In some states, you apply directly on the housing agency’s portal, and your lender uploads documents.
In others, you complete a grant/DPA form through your lender, and the lender sends the package to the agency.

Typically you will:

Fill out the application forms with your personal, income, and property details.
Attach or upload required documents (ID, income proof, bank statements, course certificate).
Sign disclosures and acknowledgments about program rules and repayment/forgiveness terms.

What to expect next: There is usually a review period where the agency or lender underwriter checks your information. If approved, you receive a written approval or commitment letter describing the amount and conditions, which must be in place before closing.

Costs, Deadlines, and Timing

Most first-time buyer grants do not charge a separate “application fee,” but there can be:

Standard mortgage costs: Appraisal, credit report, and lender fees.
Course fees: Some homebuyer education providers charge a modest fee (varies).

Deadlines and timing can vary:

Some programs are open year-round but can run out of funds until the next funding cycle.
Others are time-limited or first-come, first-served, which means applying early in the year can help.

Ask the housing agency or your lender: “Is funding currently available, and by what date do applications need to be submitted before closing?”

Avoid Mistakes and Scam Warnings

Because these programs involve money and personal data, scam risk is real.

Common snags (and quick fixes):

Applications held up due to inconsistent income information → Make sure what you report matches pay stubs, W‑2s, and tax returns.
Using a non-participating lender → Always confirm that your lender is on the program’s official approved lender list.
Signing a purchase contract without checking grant timelines → Check that your grant can be approved before your scheduled closing date.

Scam and safety tips:

Only use official .gov or clearly government-run portals or lender sites you can verify.
Be wary of anyone who guarantees approval or promises free money for an upfront fee.
Never email full Social Security numbers or bank details to unknown addresses; use secure portals whenever possible.
If something seems suspicious, contact your state housing agency or HUD-approved housing counselor directly using contact information from official government websites (such as Hud.gov or your state’s HFA site).

If a website or company claims to “manage government grants” but has no clear link from a government site and pressures you to pay, treat it as a red flag.

If This Doesn’t Work: Backup Paths to Explore

If you don’t qualify for a grant or funds are exhausted, there are still options to explore with your lender or housing agency:

Other down payment assistance programs: Some offer low-interest or deferred-payment loans instead of grants.
Mortgage products with low down payments: FHA, VA (for eligible veterans and service members), and some conventional loans.
Employer or union assistance: Certain employers, unions, or community organizations offer housing benefits.
Local nonprofits: Some community development corporations (CDCs) provide limited buyer assistance or match savings programs.

Ask your lender or agency: “If I don’t qualify for this grant, what other assistance or low-down-payment options do you offer or recognize?”

Once you’ve identified your state or local housing agency and an approved lender, you’ll be in a position to compare programs and move forward with the application path that best fits your situation.