Housing industry studies have shown that the number one barrier to buying a home is the lack of down payment funds. Interest rates are at their lowest in years, and home prices keep rising. Down payment assistance can make a difference between buying a home how– or  waiting years.

Across the nation, there are cities and counties that provide grants to first-time homebuyers to help cover the cost of their down payment. Known as “municipal grants,” funds are administered by the governmental entity to serve area residents.

Grants are like gifts, and require no repayment. Many municipal offices offer special grants to veterans, teachers, firefighters and other community-service workers. There are free grants for energy-improvements, handicap access, and health and safety improvements for homeowners.

It’s always a good idea to find out what support services are available in the community you hope to call home.

Each state has an official housing finance agency that offers low-cost mortgages and first-time homebuyer programs. Down payment assistance loans are typically 4% of the purchase price, enabling homebuyers to meet the minimum requirements for an FHA or conventional mortgage. Most agencies, however, also offer much large loan amounts to help pay for closing costs and home repairs.

Agency loans generally require no monthly payments, and are often “forgivable” over a period of time. Larger loans might be zero-percent, also requiring no payment until the home is sold or the mortgage is refinanced. State agencies also offer “mortgage credit certificates.”

Housing Finance 2020 includes a 50-state directory of grants and down payment assistance offered by governmental agencies. Community-based nonprofits and housing partnership agencies offer a wide range of programs and support services to homeowners. Even if you are not able to obtain financial assistance when buying your home, Housing Finance 2020 is a handy reference guide for homeowner resources.

 

 

20 Comments

  1. Harriet Steele on September 8, 2019 at 6:44 pm

    Hi!
    My name is Harriet Steele I have been living in my home for 20 year’s on housing in this house. I am face with moving,because the owner is no long ablere to care for the place. So he offer to sell me the place , I would be a first time buyer, Please help me in the right direction to buy this house that I have called home..

    • Anna DeSimone on September 15, 2019 at 8:33 am

      Let me know what state you are living in, and I will send you down payment assistance resources.

    • Anna DeSimone on September 22, 2019 at 3:42 pm

      You might have a good opportunity to buy a home. Please send me the city (or county) and state and I will send you information.

    • Hattie Mae Wright on December 28, 2019 at 6:22 pm

      I’m homeless right now and living in my Truck. I need help getting into a Home and Financed. Please help me. Thank you

  2. Ashley Callwood on September 18, 2019 at 10:23 pm

    First time home buyers, send me down payment assistance

    • Lasonia Banks on September 28, 2019 at 12:52 am

      Hello I’m trying to be a first time home buyer and struggling to come up with the down payment. I need help with resources outside my community so I can better a life for me and my son not in my state.

  3. Benita Robinson on September 22, 2019 at 3:20 pm

    Hi !
    I am a low income grand parent trying to apply for a housing grand for me and my 9 year old grandson for the state of Michigan what do I need to do ? We are in need to move.

    • Anna DeSimone on September 22, 2019 at 3:41 pm

      Are you looking to purchase a home, or are you looking for rental assistance? let me know the name of a nearby city so I can refer you to a housing counselor.

      • Hattie Mae Wright on December 28, 2019 at 6:24 pm

        I’m homeless right now and living in my Truck. I need help getting into a Home and Financed. Please help me. Thank you

        • Hattie Mae Wright on December 28, 2019 at 6:28 pm

          The place where I’m living at is Foreclosed and I have to leave the property. I’m Disabled and need Assistance, the reason why i don’t live in the House because i saw a Rattle Snake in the House.

    • Valerie on January 7, 2020 at 11:55 am

      Hi my name is Valerie and I am looking for assistant I’m looking to buy a condo in Boston mass on the South Shore I was preapproved but I need an assistant on a down payment do you know any assistant programs on the south shore that would help me on a condo thank you very much

  4. Nyunt N Shwe on September 27, 2019 at 2:56 pm

    I m trying to buying the house but i dont have a down payment for the house can you help me how can i get the grant please

  5. Kyle on October 11, 2019 at 8:42 am

    Looking for the grants for 20,000 down payment assistance The city is West Bloomfield Township Michigan

  6. Christopher Genheimer on October 22, 2019 at 11:15 am

    Hello my name is chris Genheimer and my wife and I are purchasing her parents home who have unfortunately passed to cancer. We are both first time home buyers and what resources are there for us to look into for assistance with home improvements and I unfortunately am unemployed at this time my wife is full time with PNC.

  7. Angela Nolan on November 24, 2019 at 3:36 pm

    Does Crandall,Texas offer HAP?

    • Anna DeSimone on November 25, 2019 at 8:44 am

      I will email you a list of all the down payment assistance programs in the state of Texas.

  8. Tracey on November 28, 2019 at 8:55 pm

    My partner is living in America for just over a year ,he wants to buy a house but can’t find the downpayment. We have an 18yr old undergoing chemotherapy who comes home from time to time also 13 yr and 10 yr old boys.He just applied for his credit card so I guess he has zero as far as credit rating.What assistance can he get to purchase a home for our family.Thanks

    • Anna DeSimone on December 1, 2019 at 12:25 pm

      Please provide the name of any state in the U.S. that you would like to purchase a home.

  9. Elaine Holt on January 20, 2020 at 8:30 pm

    I’m a first time home buyer. I have been preappoved for a home loan. But I’m having trouble getting the money I need for the down payment. I’m disable and trying to saved money from my disability check for the down payment some like an impossible task. I live in Georgia. Hope I qualify for a grant to help with down payment.

    • Anna DeSimone on January 21, 2020 at 9:37 am

      I am sending you the information for the State of Georgia.

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