You can find thousands of housing grants across the United States. While eligibility requirements, award amounts, and other specifics can vary between these programs, the following will generally apply to all down payment assistance programs.
First, housing grants are commonly available on a limited basis. Many state, local, and non-profit DPAs receive a fixed amount of aid they can provide to homeowners every year. As a result, housing grant programs can and sometimes do run out of money. When a program runs out of funding, they are often unable to provide additional assistance until the following fiscal year. Because of limited funding, it is very important that you begin searching for housing grants you may qualify for as soon as you decide that you’d like to buy a home.
Second, most down payment assistance programs focus on aiding first-time homeowners. However, some of these programs will still provide aid to homebuyers who have not owned a home for a set period of time, such as three years. If you already own a home, you will likely not qualify for a DPA program. Additionally, housing grants cannot be used on homes that you do not intend to live in. Many of these programs deny funds for the purchase of rental properties, vacation homes, and other properties that are purchased as an investment. Instead, the purpose of DPAs is to provide homebuyers with a home they intend to live in as their primary residence.
Third, many of the available down payment assistance programs are income-based. That means that each housing grant is restricted to specified income levels. That’s because these grants are intended to help low-income families and households achieve homeownership, even if they cannot afford the financial burden of a down payment. Therefore, we suggest that you always investigate a DPA program’s income requirements before you submit an application. That way, you will not waste valuable time applying for a grant that you are likely not eligible for.
Before you apply to any housing grant or down payment assistance program, you should always review its eligibility requirements to see if you might qualify. If you’re unsure whether or not you qualify for a DPA, then it’s best to submit an application anyway. After all, you may still qualify for valuable aid that can help you purchase the home of your dreams.
Click on the next slide to learn more about down payment assistance programs and other common housing grants that you may qualify for.
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