Buying your first home is an exciting milestone — but for many, the financial barriers can feel overwhelming. Fortunately, there’s good news: first-time home buyer grants can help make your dream of homeownership a reality. In 2025, there are more opportunities than ever to receive financial assistance, reduce upfront costs, and secure your new home without draining your savings.

Here’s a breakdown of some of the best first-time home buyer grants available across the United States this year.

What Are First-Time Home Buyer Grants?

First-time home buyer grants are funds provided by federal, state, or local government agencies, nonprofits, or private organizations. Unlike loans, grants typically do not need to be repaid — making them one of the best financial tools available for new buyers. Grants can help cover down payments, closing costs, and even minor home improvements.

Top First-Time Home Buyer Grants in 2025

1. Down Payment Toward Equity Act

This proposed federal program is designed to help eligible first-time, first-generation home buyers with up to $25,000 toward down payments and closing costs. While it's still pending full nationwide implementation, many states have already created similar programs based on this model.

2. Good Neighbor Next Door Program

Sponsored by the U.S. Department of Housing and Urban Development (HUD), this program offers a 50% discount on home prices for teachers, firefighters, law enforcement officers, and emergency medical technicians. It's available in revitalization areas, and although not a grant in the traditional sense, the discount functions much like one.

3. State and Local Grant Programs

Every state offers its own grants for first-time buyers. For example:

  • California’s CalHFA MyHome Assistance Program offers up to 3.5% of the purchase price for down payment and closing costs.
  • Texas State Affordable Housing Corporation (TSAHC) provides grants and low-interest loans to Texas buyers.
  • Florida's First Time Homebuyer (FTHB) Program gives buyers up to $15,000 in certain counties.

Check with your local housing authority to find programs tailored to your location!

4. National Homebuyers Fund (NHF)

This nonprofit offers grants that can cover up to 5% of your loan amount. Best of all, you don’t have to repay the assistance if you meet the program’s requirements. It’s available nationwide through participating lenders.

5. Bank and Credit Union Assistance Programs

Many banks and credit unions offer grant money or matched savings programs. For example:

  • Bank of America’s Community Homeownership Commitment provides up to $10,000 in down payment assistance plus up to $7,500 for closing costs.
  • Chase Bank Homebuyer Grant offers assistance in targeted areas across the country.

Always ask your lender about special grant programs when you apply for pre-approval.

Who Qualifies for First-Time Home Buyer Grants?

Typically, to qualify for these grants, you must:

  • Be a first-time home buyer (meaning you haven't owned a home in the last three years).
  • Meet income limits (many programs are designed for low- to moderate-income families).
  • Purchase a home within program eligibility areas.
  • Complete a homebuyer education course.
  • Meet minimum credit score and debt-to-income ratio requirements.

Every grant program has its own guidelines, so it’s important to research your options carefully and work with a trusted lender or housing counselor.

Tips for Securing a Grant

  • Start Early: Funds for grants are often limited and awarded on a first-come, first-served basis.
  • Gather Documentation: Income statements, tax returns, and proof of residency will likely be needed.
  • Work with Approved Lenders: Many programs require you to use a lender who is familiar with the grant program.

Final Thoughts

Buying your first home doesn’t have to feel financially impossible. With first-time home buyer grants, you can reduce upfront costs and move one step closer to owning the home you've always dreamed of. Research your options, connect with a knowledgeable lender, and take advantage of these incredible opportunities in 2025!