Financing
Last updated: Jan 20258 min readDown Payment Assistance & Grants
Free money for homebuyers — how to find and qualify for programs
Thousands of down payment assistance programs exist across the US — yet most buyers never apply. Here's how to find the right programs and maximize your benefits.
1Types of Assistance Programs
Not all help comes in the same form:
Grants (No Repayment):
Forgivable Loans:
Deferred Loans:
Tax Credits (MCC):
Grants (No Repayment):
- Free money — no strings attached
- Usually $5,000–$15,000
- Often funded by state or local governments
Forgivable Loans:
- Typically forgiven after 3–10 years in the home
- No monthly payments during the forgiveness period
- If you sell early, you repay a portion
Deferred Loans:
- 0% interest, no monthly payments
- Repaid when you sell, refinance, or pay off your mortgage
- Can be substantial ($15,000–$100,000+)
Tax Credits (MCC):
- Mortgage Credit Certificates reduce federal taxes
- Up to $2,000/year for the life of your loan
- Available in most states
2Where to Find Programs
Programs exist at every level:
Federal: FHA, VA, USDA, Good Neighbor Next Door, Chenoa FundState: Every state has a Housing Finance Agency (HFA) with programsLocal: Many cities and counties offer additional assistancePrivate: Bank of America, Fannie Mae HomeReady, and others offer grants
Use NestCost's Grants Finder to search by ZIP code and see programs available in your area.
Federal: FHA, VA, USDA, Good Neighbor Next Door, Chenoa FundState: Every state has a Housing Finance Agency (HFA) with programsLocal: Many cities and counties offer additional assistancePrivate: Bank of America, Fannie Mae HomeReady, and others offer grants
Use NestCost's Grants Finder to search by ZIP code and see programs available in your area.
3Common Eligibility Requirements
Most programs require:
- First-time buyer status (haven't owned in 3 years)
- Income limits (usually 80–150% of Area Median Income)
- Minimum credit score (typically 620–660)
- Homebuyer education (free courses available online)
- Primary residence (not investment property)
- Purchase price limits (vary by county)
4How to Apply
Steps to get assistance:
- Search for programs using NestCost or your state HFA website
- Check eligibility for income limits and other requirements
- Complete homebuyer education (often required before application)
- Work with an approved lender (many programs require specific lenders)
- Apply early — some programs have limited funding
- Stack programs — you can often combine federal + state + local
Pro Tips
- Programs run out of funding — apply early in the fiscal year
- You can often combine multiple programs for maximum benefit
- HUD-approved housing counselors can help you find programs for free
- Some programs have no income limits at all — check your state