Short answer
Yes — there is real money for low-income first-time buyers, but most of what is called a "grant" is actually a forgivable or deferred second loan. True grants come mainly from FHLBank set-asides and large bank programs. Forgivable and deferred help comes from HOME-funded city and county programs and national DPA sponsors. Nearly all of it caps income around 80% of area median income, requires homebuyer education, and requires you to live in the home.
Grants for Low-Income First-Time Home Buyers
This guide names the programs that actually exist, labels each one honestly as a grant, a forgivable loan, a deferred loan, or a lender credit, and lays out the eligibility rules that decide who gets them — income limits, the first-time definition, education requirements, and occupancy rules.
Last reviewed: August 2026. Program terms, income limits, and funding availability change frequently and vary by state, county, and lender. Treat everything here as a starting point to verify, not a guarantee of eligibility or funding.
See what you may qualify for
Run your ZIP through the matching tool to surface federal, state, county, and nonprofit programs together.
Every program at a glance
Provider, geography, income rule, first-time rule, education requirement, and what kind of money it really is. Dollar amounts are deliberately left out because they change by market and funding round — the matching tool carries the live numbers.
| Program | Provider | Geography | Income rule | First-time rule | Education | Type | Last checked |
|---|---|---|---|---|---|---|---|
| FHLBank homeownership set-aside programs | Federal Home Loan Banks, through member lenders | Regional — each of the 11 FHLBanks serves specific states | Typically at or below 80% of area median income (AMI) | Usually required; commonly defined as no primary-residence ownership in the past three years | Yes, homebuyer education is standard | True grant | August 2026 |
| Housing Choice Voucher homeownership option | HUD, administered by local public housing agencies | Local — only PHAs that have adopted the option participate | Existing voucher holders; PHA income and employment rules apply | Generally required | Yes, pre-purchase counseling is required | Mortgage program | August 2026 |
| USDA Section 502 Direct Loan | USDA Rural Development | USDA-eligible rural areas only, checked by property address | Low and very low income by county, generally below 80% AMI | Not strictly required, but you generally cannot own adequate housing already | Yes, in most cases | Mortgage program | August 2026 |
| HOME-funded local down payment assistance | State and local governments using federal HOME Investment Partnerships funds | City, county, or state jurisdiction that received the funds | At or below 80% AMI in nearly all cases | Commonly required | Usually yes, through a HUD-approved agency | Deferred loan | August 2026 |
| National Homebuyers Fund style national DPA | Government-chartered housing entities, through approved lenders | Multi-state, wherever an approved lender participates | Program-set limits that are often higher than local caps; some options have none | Often not required | Varies by option and lender | Forgivable loan | August 2026 |
| Chenoa Fund | CBC Mortgage Agency, a federally chartered tribal entity | Nationwide except New York, through approved lenders | One track uses an AMI cap; another has no borrower income limit | Not required | Yes, homebuyer education is required | Forgivable loan | August 2026 |
| NACA Best in America mortgage | Neighborhood Assistance Corporation of America | Nationwide, through NACA offices and events | No income limit for buyers purchasing in designated areas; priority rules apply by income and area | Not required, but you cannot own other property | Yes — NACA counseling and workshops are mandatory | Mortgage program | August 2026 |
| Habitat for Humanity homeownership | Local Habitat affiliates | Local affiliate service areas | Typically 30% to 80% AMI, set by each affiliate | Usually required in practice | Yes, plus required sweat-equity hours | Sweat-equity homeownership | August 2026 |
| Bank of America Community Homeownership grants | Bank of America | Designated markets and census tracts | Income limits apply in most markets; some products key off the property location instead | Commonly required for the down payment grant | Yes, homebuyer education is generally required | True grant | August 2026 |
| Chase Homebuyer Grant | JPMorgan Chase | Eligible census tracts in designated markets | Often tied to the property's census tract rather than the borrower's income | Not always required | Encouraged; sometimes required for an additional credit | Lender credit | August 2026 |
| Wells Fargo Homebuyer Access grant | Wells Fargo | Selected metro markets | Generally at or below 120% AMI in eligible markets | Varies by product | Yes, homebuyer education is typically required | True grant | August 2026 |
Federal programs
Federal money rarely reaches buyers directly. It flows through member banks, housing authorities, and local governments, which is why the same federal program looks different depending on where you live. Tap a program to see its full rule set.
National, nonprofit, and lender programs
These are the names buyers hear most often. Some are true grants, some are forgivable seconds, and a couple are not assistance at all — they are mortgages built to need less cash. Each card states which.
Who actually qualifies
- Income limits are set against AMI, not a national number
- Most low-income programs cap household income at 80% of area median income, with some reaching to 100% or 120% in high-cost markets. AMI is set county by county and updated annually, so the same salary can qualify in one county and not the next one over. Household size changes the limit too.
- "First-time buyer" usually means the last three years
- The standard definition is that you have not owned a primary residence during the previous three years. Prior homeowners regularly requalify. Some programs waive the rule entirely for buyers in targeted areas, and a few, like FHA and several national DPA options, never had one.
- HUD-approved homebuyer education is usually mandatory
- Expect a certificate from a HUD-approved counseling agency or an approved online course. Take it early — closings get delayed when the certificate is the last missing document, and some programs require the course to be completed before you go under contract.
- Credit score minimums are program-set, not universal
- Many assistance programs sit on top of an FHA first mortgage and follow that loan's underwriting, commonly looking for a mid-600s score, though some accept lower with compensating factors and others require more. The assistance program can set a higher floor than the mortgage itself.
- You have to live there
- Owner-occupancy is near-universal. Assistance is not available for investment properties or second homes, and moving out during the affordability period is one of the most common triggers for having to repay a forgivable second.
- Rural programs are checked by address
- USDA eligibility is drawn on a map, not by how a town feels. Plenty of outer-suburban addresses qualify. Always check the exact property address rather than the city name.
- Voucher holders have a separate path
- If you hold a Housing Choice Voucher, your housing authority may let you apply it toward a mortgage instead of rent — but only if that PHA has adopted the homeownership option, and minimum income and employment rules typically apply.
True grant vs forgivable loan vs deferred loan vs lender credit
This is where most confusion lives. Four things get called a grant, and only one of them always is.
| What it's called | What it actually is | Do you pay it back? | What to watch for |
|---|---|---|---|
| True grant | Money given to you at closing that is yours to keep. | No, under normal circumstances | Many grants still carry a short occupancy or retention period. Selling or refinancing before it ends can mean paying some of it back. |
| Forgivable loan | A silent second mortgage recorded on the home that is written off over time. | Not if you stay long enough | Forgiveness periods commonly run five to fifteen years, and some forgive gradually while others forgive all at once at the end. |
| Deferred loan | A real second loan with no monthly payment while you live there. | Yes — the balance comes due later | Repayment is usually triggered by sale, refinance, or paying off the first mortgage. Ask whether interest accrues in the meantime. |
| Lender credit | A credit the lender applies at closing toward points, fees, or your down payment. | No, but it is tied to that lender's loan | You have to use that lender's mortgage to get it, so compare the rate and fees against outside quotes before assuming the credit wins. |
Find programs in your state
State housing finance agencies run the largest single pool of first-time buyer assistance, layered on top of city and county programs.
Find low-income buyer programs in your state
Pick your state and we'll open the matching tool pre-set for first-time buyer assistance.
If you think you probably don't qualify
Most people who assume they are ineligible have never actually checked. Income limits are local and move every year, prior homeownership usually stops counting after three years, and credit requirements are lower than the internet suggests. Checking costs nothing and does not affect your credit. Even if nothing matches today, a HUD-approved counselor will map out exactly what has to change — for free.
Common questions
Check which programs you match today
Free, no credit impact, and it covers federal, state, county, and nonprofit sources at once.
Keep going
Educational information only — not legal, financial, or tax advice, and not an offer of credit or a commitment to lend. Program names are referenced for illustration; Home Approach does not administer them. Income limits, forgiveness terms, funding availability, and lender participation change over time and differ by location. Verify every requirement with the program sponsor and your own lender before acting.