How To Get Free Grants To Help You Buy a House

Buying a home is expensive, but down payment and closing cost grants can reduce how much cash you need upfront or, in some cases, cover it entirely. These programs are typically run by government agencies, housing finance authorities, or nonprofits, not by HowToGetAssistance.org. This site is informational only; you must use official channels to apply or check your status.

Fast Answer: Where “Free” Homebuyer Grants Usually Come From

There is no single national “free grant” you can apply for once and be done. Instead, homebuyer grants typically come from:

  • State and local housing finance agencies (HFAs)
  • City or county first-time homebuyer programs
  • Nonprofit housing counseling agencies and community groups
  • Occasional employer or union homebuyer assistance programs

Most of these grants do not have to be repaid as long as you meet their rules (such as living in the home for a set number of years), but some are structured as forgivable loans or silent second mortgages.

To find real programs near you, start with your state housing finance agency (search for “[Your State] housing finance agency first-time homebuyer”) and your city or county housing department website.

Does This Apply to Me? Typical Eligibility for Homebuyer Grants

Eligibility rules vary by state and city, but most homebuyer grant programs share common requirements:

  • Income limits: You usually must have low to moderate income based on your area and household size (for example, below 80%–120% of area median income).
  • First-time buyer definition: Many programs require you to be a first-time homebuyer, often defined as no home ownership in the past three years; some allow exceptions (divorce, displacement, veterans).
  • Owner-occupied requirement: Grants typically require you to live in the home as your primary residence, not use it as a rental or vacation property.
  • Property type and price limits: Many programs only cover single-family homes, condos, or certain multi-units under a maximum purchase price.
  • Minimum contribution: Some programs expect the buyer to contribute a small amount of their own funds (for example, $500–$1,000 or 1% of the purchase price).
  • Homebuyer education: A HUD-approved homebuyer education course is commonly required before closing.

State and local variation: Exact rules, income limits, and grant amounts differ widely. To see what applies to you, look up your state housing finance agency and your city or county housing / community development department, then read the “homebuyer assistance” or “down payment assistance” sections.

Key Terms You’ll See (Plainly Explained)

  • Down payment assistance (DPA): Help with the initial amount you pay toward the home price, sometimes as a grant or forgivable loan.
  • Closing costs: Fees you pay at closing (lender fees, title, taxes, insurance); some grants cover these too.
  • Forgivable loan / silent second: Assistance that is recorded as a second mortgage but is forgiven after you meet residency or time requirements, so you typically don’t make monthly payments on it.
  • Area Median Income (AMI): The midpoint income for your area, used to set income limits for eligibility.

Your Next Steps: How to Find and Apply for Homebuyer Grants

Step 1: Identify the main official agencies in your area

  1. Find your state housing finance agency (HFA).
    Search online for “[Your State] housing finance agency first-time homebuyer.” Look for a .gov or official state domain.

    • Many HFAs list approved lenders and have pages for down payment or closing cost assistance.

  2. Check your city or county housing department.
    Search “homebuyer assistance [Your City]” or visit your city/county housing or community development department’s website.

  3. Use HUD and 211 as backup directories.

    • HUD’s list of approved housing counseling agencies can be found on the official HUD website under “Housing Counseling Agencies.”
    • You can also visit 211.org to find local housing and financial assistance resources by ZIP code.

What to expect next: Typically, you’ll find web pages listing each program, with eligibility rules, grant or loan amounts, and a link to program applications or participating lenders.

Step 2: Confirm you fit basic program requirements

Before you get deep into paperwork, quickly check that you match the common conditions:

  1. Compare your income to the limit.
    Programs usually post income limit charts by household size. Make sure your gross annual income is at or below the relevant limit.

  2. Check the “first-time buyer” definition.
    If you owned a home in the past three years, see if the program allows repeat buyers or has exceptions (for example, displaced homemakers, single parents).

  3. Review eligible property types and areas.
    Confirm the program works for where you want to buy and the type of property (single-family, condo, etc.).

If you’re close but unsure: Call the number on the program page or a listed approved lender and say, “I’m interested in your down payment / homebuyer grant programs and want to confirm if my income and situation might qualify before I apply.”

Step 3: Gather the documents you’ll usually need

Having documents ready reduces delays and denials:

  • Photo ID (driver’s license or state ID)
  • Social Security number or eligible immigration documentation (if required)
  • Recent pay stubs (typically last 30–60 days)
  • Last 2 years of tax returns and W-2s
  • Bank statements (usually last 2–3 months)
  • Proof of other income (child support, benefits, self-employment records)
  • Signed sales contract (once you have an accepted offer, for final approval)
  • Certificate of completion for a homebuyer education course (if required)

Programs may also ask for landlord references, a credit report, or debt statements to review your overall financial picture.

Step 4: Apply through the correct channel

Homebuyer grants are usually accessed in one of two ways:

  1. Through an approved lender

    • Many state HFA and city programs are delivered by participating mortgage lenders.
    • You apply for your mortgage and the grant or down payment assistance at the same time with that lender.
    • The lender submits your grant paperwork to the agency.

  2. Directly with the city/county or nonprofit

    • Some programs require you to apply directly to the housing department or nonprofit for a grant approval letter.
    • You then bring this approval to your lender when you finalize your mortgage.

What to expect next: After you apply, you’ll typically receive conditional approval (based on income and credit) and then final approval once you have a property under contract and all documents are verified. Timelines vary by program and workload; there is no guaranteed processing time.

Real-World Friction to Watch For

A common reason applications get delayed is missing or outdated documents, such as bank statements that are older than the program allows, unsigned tax returns, or incomplete homebuyer education certificates. People also often get stuck when they apply with a lender that is not approved for a specific grant program, which can force them to switch lenders late in the process. To avoid this, always confirm in writing that your lender is approved for the exact assistance program you want to use.

Avoid Mistakes and Homebuyer Grant Scams

Because housing grants involve money and personal information, scams and mistakes are real risks.

Red flags and how to stay safe:

  • Never pay a “grant fee” or “expedite fee” to a third party. Legitimate government or nonprofit programs typically do not charge you to access the grant itself, though you may pay normal loan or closing costs to your lender.
  • Avoid anyone guaranteeing approval or a specific grant amount. Real programs make decisions based on your full application, income, property, and funding availability.
  • Verify the website and agency name. Confirm you’re on a .gov, official state/local site, or well-known nonprofit before giving personal data.
  • Do not send documents by unsecured email unless the agency or lender clearly allows it and uses encryption or secure portals.
  • Be cautious with “grant coaches” or “consultants.” Some may charge high fees for information you can get free from your housing agency or a HUD-approved counselor.

If you’re unsure whether a program is real, you can call your state housing finance agency or a HUD-approved housing counseling agency to confirm before sharing information.

If Grants Aren’t Available: Other Ways to Reduce Upfront Costs

In some areas or at certain times, direct “free grant” funding can be limited or temporarily closed to new applicants. If that happens, consider:

  • Forgivable or low-interest down payment loans from your state HFA or city programs.
  • Lender credits in exchange for a slightly higher interest rate (still compare total costs carefully).
  • Seller concessions, where the seller agrees to cover part of your closing costs.
  • USDA, VA, or FHA loans that allow lower down payments, combined with any smaller local assistance you can still access.
  • Employer homebuyer benefits, sometimes available through larger employers, school districts, or hospitals.

Next best step if grants are closed: Contact a HUD-approved housing counselor and ask, “What current down payment assistance, forgivable loans, or closing cost help might be available in my county, and how do I qualify?” They can often point you to options that are not widely advertised.

Quick Summary: How to Get Homebuyer Grants

  • Do this next:Look up your state housing finance agency and your city/county housing department for “homebuyer assistance” or “down payment assistance” pages.
  • Most “free grants” are state, local, or nonprofit programs that help with down payment and closing costs in exchange for income limits, residency, and first-time buyer rules.
  • You’ll typically need income documentation, bank statements, tax returns, and homebuyer education to qualify.
  • Applications usually go through an approved lender or directly to a housing agency, not through general information sites.
  • Always verify that a lender is approved for the program, and avoid anyone asking for upfront “grant fees” or guaranteeing approval.
  • If direct grants aren’t available, ask about forgivable loans, low-interest assistance, or employer benefits as backup options.

Once you’ve identified your state and local programs and confirmed that you roughly fit their rules, your clearest move is to speak with an approved lender or HUD-approved housing counselor and start the formal application using their official process.