Grants for first time home buyers are financial assistance programs specifically designed to alleviate the financial burden associated with buying a home. Unlike loans, these grants don't have to be repaid, making them a valuable resource for those who are struggling but still dream of owning their own home.
If you're a prospective homebuyer seeking information on first-time homebuyer grants, we're here to help. Let Loan Factory guide you through these first time home buyer grant programs!
Federal Grant Programs
1. HomePath Ready Buyer
This Fannie Mae program offers up to 3% of the home’s purchase price in closing cost assistance. For a $250,000 home, that equates to $7,500. To qualify, you must be at or below 100% of the median income for your area and buy a HomePath property, which is a foreclosed home owned by Fannie Mae.
2. Good Neighbor Next Door
This HUD program offers 50% off the list price of a home for full-time law enforcement officers, firefighters, emergency medical technicians, or teachers. Eligible properties are in revitalization areas, and recipients must commit to making the home their primary residence for three years.
3. FHFA First-Time Homebuyer Rate Discount
This initiative provides a mortgage rate discount of up to 1.75 percentage points off conventional 30-year fixed-rate mortgage rates. To qualify, the home must be used as a primary residence, and you must meet low or moderate household income requirements.
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Financial Institution Grants
1. Bank of America’s Home Grant
Eligible applicants can receive up to $7,500 to help cover closing costs. This can be combined with the "Down Payment Grant”, which covers 3% of the home’s purchase price or up to $10,000, whichever is less.
2. Chase Homebuyer Grant
JPMorgan Chase provides $5,000 in closing costs and down payment assistance for homes in one of 14,000 minority communities. The grant is available for DreaMaker, Standard Agency, FHA, and VA mortgages and can be used to purchase points from a lender to reduce your interest rate.
3. Citibank Lender Paid Assistance
Citibank offers up to $7,500 in credit for eligible closing costs. You must purchase a primary residence in specific areas of certain cities and meet other eligibility requirements.
4. Wells Fargo Homebuyer Access Grants
Wells Fargo offers $10,000 grants for down payment assistance. You must meet eligibility requirements and purchase a home in certain underserved communities in eight metropolitan areas.
1. Florida
- Hometown Heroes: Provides up to 5% of the mortgage loan amount, as much as $35,000, for full-time employees of a Florida-based employer.
- HOME Homebuyer Program: Offers up to $12,500 in down payment and closing cost assistance in Pensacola and Escambia County.
- Orange County Down Payment Assistance Program: Offers assistance based on household income and size, with up to $45,000 for very low-income buyers.
2. New York
- Albany County Rural Housing Alliance Homebuyer Dream Program: Grants up to $9,500 in down payment and closing cost assistance.
- City of Buffalo Down Payment and Closing Cost Assistance Program: Provides up to $10,000 for first-time homebuyers.
- HomeFirst Down Payment Assistance Program: Offers up to $100,000 in down payment or closing cost assistance in New York City.
Nonprofit grants for first time home buyers
National Homebuyers Fund (NHF)
Provides up to 5% of a home’s purchase price in a cash grant. Recipients must agree to make the home their primary residence for five years.
Benefits of Choosing Loan Factory
- Expert Guidance: Loan Factory’s experienced professionals can help you understand the details of each grant program.
- Comprehensive Support: Loan Factory supports you throughout the entire home buying process, from pre approval to closing, to ensure everything goes smoothly.
- Exclusive first time home buyer grant programs: Gain access to special down payment assistance programs that you might not find elsewhere.
Utilizing these grants for first time home buyers can significantly reduce the costs associated with purchasing a home. With Loan Factory’s expert guidance and full support, you can confidently take steps toward owning your own home.
Visit our website to check mortgage interest rates today or call us at 714-444-9999, your dream home is within reach!
