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First-Time Homebuyer Down Payment Grants: No-Repayment Assistance
Down payment grants are outright gifts — no repayment, no lien on property. Typical range: $3,000-$15,000 depending on program and market. National grant programs: Bank of America Community Homeownership Commitment ($7,500-$10,000 in eligible areas); Chase DreaMaker ($3,000-$5,000 in eligible areas); Federal Home Loan Bank Affordable Housing Program (through member banks). State and local grants often $5,000-$25,000+. Grants can be stacked with other DPA loan programs. Own Luxury Homes® 12-Point Agent Integrity Audit™.
First-Time Homebuyer Down Payment Grants: No-Repayment Assistance
Down payment grants are the most straightforward form of assistance — money you receive that never has to be repaid. Here is where to find them and what to know before applying.
What Makes a Grant Different From a DPA Loan
A grant is outright assistance with no repayment obligation, no second mortgage, and no lien recorded against your property. Once received and closed, it is yours. You are not required to repay it if you sell or refinance. A DPA loan (forgivable, deferred, or otherwise) is a second mortgage — even if you never make a payment on it, a lien is recorded against your home. That lien must be satisfied (forgiven per the program terms or repaid) before you have clear title. Grants tend to be smaller than loan-based DPA because they carry less risk for the issuing agency (no outstanding balance to track or collect). Grant programs are often funded by federal Community Development Block Grants (CDBG), bank settlement funds, or nonprofit capital, and are distributed through state and local housing agencies.
Major National Grant Programs
Bank of America Community Homeownership Commitment: offers up to $10,000 in down payment grants and up to $7,500 in closing cost grants in eligible markets. Available only through Bank of America as the mortgage lender. Geographic availability varies. Chase DreaMaker Mortgage Grant: $3,000–$5,000 in eligible markets for qualifying first-time buyers who use a Chase DreaMaker mortgage. Income limits apply. Federal Home Loan Bank Affordable Housing Program (AHP): member banks can access FHLB grants of $2,500–15,000 for qualified buyers. Must be applied for through a participating FHLB member bank. Ask your lender if they are a FHLB member and whether they have AHP funds available. National Homebuyers Fund (NHF): a nonprofit that provides DPA grants and second mortgages in partnership with lenders in most states. Up to 5% of the loan amount as a grant. Administered through participating lenders. State and local housing agencies also offer standalone grants, particularly in targeted revitalization areas or for specific buyer profiles (veterans, teachers, healthcare workers, first-generation buyers).
Stacking Grants With Other Assistance
Grants can often be stacked with other DPA programs, giving buyers access to multiple sources of assistance simultaneously. Example stack: • State HFA forgivable second mortgage ($10,000) • City community development grant ($5,000, in a targeted area) • Bank-sponsored down payment grant ($7,500) • Family gift funds ($3,000) • Total assistance: $25,500 Not all programs allow stacking — some prohibit combining with other DPA sources. Confirm with each program whether stacking is permitted before building your funding plan.
“Grants are the cleanest form of DPA because there is no outstanding obligation. The challenge is that they are often smaller amounts, geographically limited, and tied to specific lenders (bank-sponsored grants typically require you to use that bank's mortgage). I help buyers evaluate the full picture: a $10,000 bank grant that requires using a lender with a rate that is 0.5% above market needs to be evaluated against the total interest cost over the loan term, not just the grant amount.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
Are there grants for first-time homebuyers?
Yes. Multiple types of grants exist: bank-sponsored grants (Bank of America up to $10,000; Chase up to $5,000 in eligible markets), Federal Home Loan Bank Affordable Housing Program grants ($2,500-$15,000 through member banks), National Homebuyers Fund grants (up to 5% of loan amount), and state and local housing agency grants. Grants are no-repayment, no-lien assistance. They are typically smaller than loan-based DPA programs but can be stacked with other assistance. Geographic availability and income limits vary significantly by program.
What is the difference between a down payment grant and down payment assistance?
Both reduce the cash you need to bring to closing, but they are structured differently. A grant is an outright gift with no repayment obligation and no lien on your property. Down payment assistance is often structured as a second mortgage (forgivable, deferred, or repayable) with a lien recorded against the property. Grants are generally smaller; loan-based DPA can be larger amounts. Both can be used toward the down payment and sometimes closing costs. Many buyers use both simultaneously.
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)