There are national non-profit organizations dedicated to assisting home buyers with their down paymenti and closingi costsi. Down payment grants for first time home buyers are also available.

Buyers can receive a free gift under these programs. Gift amounts vary with each program but are generally available in amounts of 3% with some programs, all the way up to $22,500 with others. Buyers never have to repay these grants for down payment.

It's easy to receive one of these government grants for down payment, however qualification guidelines do vary with each program. Each program requires that buyers must qualify for any eligible loan program with their lender (there are many programs that qualify).

While this is the ONLY qualifying requirement of some programs, others have requirements such as requiring that the buyer complete a Home Ownership Counseling Course or provide 1% of their own funds into the transaction. In addition some programs have income/asseti restrictions, recapture clauses, reservesi required, or geographic boundaries. Each program can provide you with their specific requirements and/or limitations.

These home purchase grants generally participate with FHAi, Conforming, and Non-Conforming loani products. Most of these programs do not underwrite the loan or add any cost in the form of points, fees, etc., they simply provide the gift for the down payment and/or closing costs.

These grants for a down payment programs can be used for Single Family (1-4 unit) homes, Manufactured/Modular Homes, Condominiums, Townhouses, Existing or New Construction, Rehab and Non-Conforming.

Other Resources: Partners in Charity Program, Home Down payment Gift Foundation & The Genesis Program.