Are there really grants for buying a home?

Grants and down-payment assistance programs are offered by state and local housing agencies, nonprofits, employers, and some lenders. These programs can help qualified buyers cover part or all of a down payment, and in some cases certain closing costs. Not every program is a true grant—some assistance is structured as a forgivable loan, a second lien, or a deferred-payment obligation that must be repaid under specific conditions.

Eligibility commonly depends on factors such as first-time buyer status, income limits, purchase-price caps, property location, owner-occupancy requirements, and completion of a homebuyer education course. Availability also varies significantly by state, county, and city. A program that exists in one market may not be offered in another, and funding can be limited or seasonal.

Because terms and strings can differ widely, it is important to review whether the assistance is a grant, a forgivable lien, a deferred second, or a repayable loan. Understand any recapture rules, occupancy requirements, resale restrictions, and how the program may interact with your mortgage, taxes, and closing timeline.