Quick Answer
National home buyer help comes in several forms: grants or lender credits that may not require repayment, forgivable or deferred second mortgages, repayable assistance loans, low-down-payment mortgages, counseling-based nonprofit programs, and targeted property discounts. They are not interchangeable. Compare repayment, interest rate, monthly payment, eligible costs, location, income rules, and cash to close before choosing.
Key Takeaways
- FHA, VA, USDA, HomeReady, and Home Possible are mortgage options, not grants.
- Some lender and nonprofit benefits do not require repayment; others create a second mortgage or repayment obligation.
- Program availability can depend on income, location, occupation, lender, property, counseling, and funding windows.
- The largest advertised benefit is not always the lowest-cost choice.
- Verify current terms with the program and lender before relying on funds in an offer.
Start by Identifying the Type of Help
| Type | How it helps | Main risk to check |
|---|---|---|
| Grant or lender credit | Reduces eligible upfront costs and may not require repayment. | Limited markets, eligible uses, lender pricing, and expiration. |
| Forgivable or deferred second mortgage | Provides funds now with repayment delayed or forgiven if conditions are met. | Occupancy period, sale or refinance triggers, interest, and forgiveness schedule. |
| Repayable assistance loan | Adds funds for down payment or closing. | Payment, interest, lien position, and total debt. |
| Affordable mortgage | May reduce down payment or adjust underwriting and mortgage-insurance features. | Monthly payment, insurance or guarantee fees, income limits, and property rules. |
| Property discount | Reduces the purchase price of a narrowly eligible home. | Inventory, occupation rules, occupancy commitment, and resale restrictions. |
Programs Available Nationally or Through National Organizations
Progressive UpPayment®
The 2026 Progressive UpPayment program, administered by the National Urban League, offers eligible first-time buyers up to $13,500 in down payment assistance that does not require repayment. Progressive says at least 200 buyers will receive assistance. Applications are accepted from May 1 through September 30, 2026, with funding awarded monthly through participating Urban League affiliates on a first-come, first-served basis while funds remain available. Applicants must work with a participating HUD-certified Urban League housing counselor before applying. Confirm local participation and available funding before relying on the assistance.
FHA Loans
FHA-insured loans can allow a down payment as low as 3.5% for borrowers who meet the applicable credit standard. FHA is financing, not free assistance, and mortgage insurance applies. Eligible gifts or assistance may sometimes be combined with the loan. Compare the full payment and cash to close with conventional options.
VA-Backed Purchase Loans
Eligible service members, veterans, and certain surviving spouses may qualify for a VA-backed loan with no down payment required by VA and no monthly mortgage insurance. A funding fee may apply unless the borrower is exempt, and lenders still underwrite income, credit, and the property.
USDA Guaranteed Loans
Eligible households buying in qualifying areas may obtain USDA-guaranteed financing without a down payment. Household income, property location, occupancy, and lender underwriting rules apply, along with program fees. Many eligible areas are rural or suburban rather than remote.
Fannie Mae HomeReady®
HomeReady is a conventional mortgage for eligible low-income borrowers that can provide financing up to 97% of the property value and permit flexible eligible funding sources. Fannie Mae currently provides a $2,500 credit for qualifying very-low-income loans when at least one borrower is a first-time home buyer. The temporary credit applies to eligible loans delivered within Fannie Mae's published window extending into February 2027. Because lender processing and delivery deadlines apply, ask the lender to confirm current eligibility, timing, and how the credit may be used.
Freddie Mac Home Possible®
Home Possible is a conventional mortgage for eligible very low- to low-income borrowers that can allow financing up to 97% of the property value. Income limits, education rules in some situations, mortgage insurance, and lender underwriting apply. It is a loan option rather than cash assistance.
HUD Good Neighbor Next Door
Eligible law enforcement officers, pre-K through grade 12 teachers, firefighters, and emergency medical technicians may receive a 50% discount when purchasing certain HUD-owned homes in designated revitalization areas. The buyer must occupy the property as a principal residence for 36 months and sign a silent second mortgage and note for the discount amount. No interest or payments are required on that second mortgage when the occupancy requirement is satisfied. Eligible inventory is limited and changes frequently.
NACA Purchase Program
NACA combines comprehensive housing counseling with access to its mortgage program for qualified members. NACA advertises no down payment, closing costs, fees, or mortgage insurance, along with a fixed interest rate, subject to its qualification, membership, occupancy, property, and participation requirements. The process can differ substantially from a conventional lender transaction, so compare the expected timeline, required counseling and participation, property approval process, monthly payment, and interest rate with other financing options.
Habitat for Humanity Homeownership
Local Habitat organizations offer an affordable homeownership path rather than a universal down payment grant. Applicants generally must demonstrate housing need, ability to pay an affordable mortgage, and willingness to partner with the local organization. Homes, waitlists, selection criteria, and participation requirements are local.
Bank of America Home Grants
In select markets, eligible borrowers may receive America's Home Grant®, a lender credit of up to $7,500 for eligible nonrecurring closing costs or a permanent rate buydown. Bank of America also advertises a down payment grant of up to 3% of the purchase price, capped at $10,000, in select markets. The programs do not apply to every mortgage or location, so compare the bank's complete loan pricing with competing Loan Estimates.
Chenoa Fund
Chenoa Fund down payment assistance is available through approved lenders in participating states and may be paired with eligible FHA financing. Current offerings may provide assistance equal to 3.5% or 5% of the purchase price through a second mortgage. Available structures can have different repayment, interest, payment, or forgiveness provisions. Confirm that the program is available in your state and request the note, second-mortgage terms, interest rate, monthly payment, forgiveness schedule, and sale or refinance consequences before deciding.
How to Compare Programs
- Classify the benefit. Is it a grant, credit, second mortgage, repayable loan, mortgage product, or property discount?
- Verify eligibility. Check income, first-time-buyer status, location, occupation, property, occupancy, lender, and education requirements.
- Calculate the complete transaction. Compare rate, annual percentage rate, payment, mortgage insurance, fees, cash to close, and funds left after closing.
- Read exit terms. Find out what happens if you sell, refinance, move, rent the home, or pay off the first mortgage.
- Confirm timing. Ask whether funds are reserved, whether approval can meet the contract deadline, and which lenders may participate.
- Compare an option without assistance. Ask for a comparable Loan Estimate without the grant, credit, or second mortgage so you can see whether the assistance changes the rate, fees, mortgage insurance, or long-term cost.
Qualification Checklist
- Review credit, income, debt, savings, and a comfortable monthly budget.
- Gather tax, income, asset, identity, and housing-history documents.
- Ask a HUD-approved housing counselor about national, state, and local programs.
- Compare at least two lenders using Loan Estimates for the same scenario.
- Ask whether programs can be layered and which contribution limits apply.
- Keep written program approval and do not assume advertised funds are reserved.
Common Mistakes
- Calling every low-down-payment loan a grant.
- Ignoring a second mortgage because it has no immediate payment.
- Choosing a large credit without comparing the interest rate and total loan cost.
- Waiting until after making an offer to confirm program timing.
- Forgetting to check state home buyer programs and local housing agencies.
What to Do Next
Start with a comfortable budget, then ask a HUD-approved housing counselor and at least two participating lenders to screen the same buyer and property scenario. Request a written explanation of repayment, loan pricing, cash to close, and post-closing funds. Continue with first-time buyer loan options and questions to ask every mortgage lender.
Program details reviewed July 12, 2026. Funding, eligibility, dates, and loan terms can change. Verify current terms directly with the program, housing counselor, and lender before relying on assistance.