Buying your first home shouldn’t feel like climbing Mount Everest. While saving for a down payment can seem overwhelming, there’s more help available than most folks realize. Between state programs, local agencies, and federal initiatives, thousands of dollars in grants and assistance are waiting for qualified buyers across America.

Start With Your State Housing Finance Agency

Every state has a housing finance agency (HFA) that’s specifically designed to help folks like you become homeowners. These agencies are often your best starting point because they offer the largest and most comprehensive programs.

There are between 2,000 and 2,500 down payment assistance programs in the U.S. For example, Iowa’s Military Homeownership Assistance program provides a $5,000 grant for down payment and closing costs for eligible service members and veterans, while Florida has 68 first-time home buyer grants and programs available through the end of 2025.

To find your state’s HFA, visit the National Council of State Housing Agencies website where you can click on your state and get connected directly to your local programs. Don’t just browse their website though – call them. These agencies have specialists who can walk you through every available option.

Dig Into Local City and County Programs

Your hometown might have its own treasure chest of homebuying assistance. Cities and counties received over $119 million last fiscal year to help residents with various programs in Illinois alone, and this pattern repeats nationwide.

Local programs often provide grants between $3,000 and $25,000 for down payments and closing costs. New York City’s HomeFirst program offers up to $100,000 toward down payment and closing costs, while smaller cities typically offer $3,000 to $10,000 grants.

Contact your city hall or county government and ask specifically about first-time homebuyer programs. Many of these programs aren’t heavily advertised, so you’ll need to ask directly. Search online for “[your city/county name] first-time homebuyer grants” to get started.

Federal Programs That Pack a Punch

USDA Rural Development Grants

USDA Rural Development’s Single Family Housing Programs give families and individuals the opportunity to buy, build, or repair affordable homes located in rural America with no money down. Don’t let “rural” fool you – according to the U.S. Census Bureau, 97% of land is located within USDA-eligible boundaries.

Check if your target home qualifies using the USDA eligibility map. If it does, you could qualify for a zero-down loan that averages lower rates than conventional mortgages.

FHA Loans and Down Payment Assistance

While FHA loans aren’t grants, they only require 3.5% down, and many local programs will provide grants to cover that amount. Home buyers using an FHA-backed mortgage in 2025 are limited to loan sizes of $498,257 for 1-unit homes in most parts of the country, and $1,149,825 in high-cost areas.

Homeowner Assistance Fund (HAF)

The Homeowner Assistance Fund provides $9.961 billion to support homeowners facing financial hardship associated with COVID-19, and through June 2024, HAF-funded programs have assisted over 549,000 homeowners. While primarily for existing homeowners who’ve fallen behind, some states use HAF funds for first-time buyer assistance.

Programs for Specific Groups

Veterans

If you served in the military, you’ve got access to some powerful benefits. VA loans require no down payment, and many states offer additional grants specifically for veterans. Veterans who own their homes and have service-connected disabilities can receive SAH grants up to $117,014 for building, remodeling or purchasing an adapted home.

Rural Homeowners

USDA’s Section 504 Home Repair program provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners. Loans and grants can be combined for up to $50,000 in assistance or $55,000 in presidentially declared disaster areas.

How to Apply Successfully

Start your hunt at least six months before you want to buy. Many programs have limited funding that gets distributed first-come, first-served, or they only accept applications during specific periods.

Most first-time home buyer grant programs require a homebuyer education course to help you understand the responsibilities of homeownership. Complete this course with an approved provider and obtain a certificate.

Gather your documents early: tax returns, pay stubs, bank statements, and credit reports. Programs determine eligibility based on the median income in your area, which means that even if you have a moderate income, you might qualify for these programs if you live in a wealthier area.

Where to Find More Help

Beyond state HFAs, check these resources:

• HUD’s Directory of Homebuying Programs lists programs by state
• Your real estate agent or loan officer can recommend local programs
• Bank of America’s Down Payment Center helps you search for eligible programs
• Google “[your area] first-time homebuyer grants” for the most current local options

The key is persistence. Don’t give up if the first program you contact isn’t a fit. The National Homebuyers Fund awards housing grants for up to 5 percent of a home’s purchase price, and many similar programs exist if you keep looking.

Remember, these programs exist because communities want stable homeowners. You’re not asking for a handout – you’re participating in programs designed to strengthen neighborhoods and build wealth for working families. Start your search today, and you might be surprised how much help is actually available in your backyard.