Are you looking to buy your first home? Thanks to NHC’s unbeatable prices, homeownership has never been more obtainable. What’s even better than securing a spacious, newly constructed home at the lowest price per square foot? Getting a first-time home buyer grant to make the purchase that much more affordable. These include $7,500 first-time home buyer government grants, $5,000 first-time home buyer grants from certain lenders, and more.

With the money you’ll save on a newly constructed NHC home, a first-time home buyer grant could make the closing process that much easier. So, what are these grants? How can individuals qualify? And how much money could you potentially receive during the process? We’ll break it all down in this blog, starting with the types of grants that may be available in your area and how NHC is putting affordable homes back on the map.

What are First-Time Home Buyer Grants?

Before we break down the different options you could qualify for, let’s briefly discuss what a first-time home buyer grant is. The TLDR version: These grants are money provided by a federal or state government, lender, or nonprofit that helps first-time home buyers cover part of the upfront costs like a down payment or closing fee.

Unlike conventional home loans, grants may not need to be paid back, as they could feature 0% interest rates. Plus, when buying an affordable home from NHC, we cover closing costs for you, meaning you could use your first-time home buyer grant to put down more money on the home, possibly lowering the interest rate of your mortgage. So, how can you get one?

Federal Grants

On top of FHA loans, which help those with credit scores under 620 secure mortgages, the federal government also offers several programs for first-time home buyer grants, including the Fannie May HomePath Ready Buyer program, the Good Neighbor Next Door program, and the FHFA’s first-time home buyer rate discount—which could lower your interest rate by up to 1.25%. Combined with our home prices that are tens of thousands less than the average, this interest rate reduction could significantly decrease your monthly payments.

Grants from Lenders

Another option for first-time buyers is to get a grant from their lender, such as a bank or nonprofit organization—banks such as Wells Fargo, Bank of America, and Citibank. JPMorgan Chase also offers a $5,000 first-time home buyer grant to those who qualify. If you’re looking to secure financing through a bank or credit union, be sure to speak with an advisor to see if you qualify.

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State and Local Programs

You may also be surprised to find first-time home buyer grants in your state. States such as Texas and Florida have programs designed to help first-time buyers secure a piece of the American Dream. The Texas State Affordable Housing Corporation (TSAHC), for example, can help qualified first-time buyers with down payment assistance, mortgage interest tax credits, and more. Coupled with the low price tags on NHC’s available Texas homes, your buying power is a lot stronger than you might think. Our loan officers can even help you with your first-time home buyer grant application(s).

The first-time home buyer grant application process for the above options requires only a few key steps. Once you’ve been approved for your mortgage, seek out the grant you’d like to apply for, discuss your eligibility with your loan officer, and fill out the required information.

Qualifying for First-Time Home Buyer Grants

While requirements for first-time home buyer grants will vary, there are a few factors to keep in mind when determining if you qualify. The first is your level of income. First-time home buyer grants tend to be reserved for those with incomes that are at or below the median average. So, for example, if your yearly income is $50,000 and the median in your area is $65,000, you should qualify.

Another factor is your credit score. Those with high credit scores may not qualify for financial assistance; however, this could also vary depending on which state you’re in or which lender you choose to work with. Most programs will require a minimum score of 620-640.

Finally, many first-time home buyer grants will require that the home you purchase be your full-time residence for a certain amount of years. This is why NHC’s newly constructed, affordable homes are a great option for first-time buyers. We’ll help you find a home you’ll love living in for years to come without having to stress over your budget. Explore our available homes across Texas, Florida, North Carolina, and Alabama to see what the lowest price per square foot could get you!

FAQs

How do first-time home buyer grants work?
For those who qualify, a first-time home buyer grant provides a certain amount of money—typically between $5,000 to $10,000+—to help cover the initial costs of a down payment or closing fee.

Is there a $25,000 first-time home buyer grant?
If passed, the federal government’s Downpayment Toward Equity Act would offer first-time buyers a $25,000 grant. Currently, the bill has not yet passed, though.

Are there income limits for first-time home buyer grants?
Yes. While it may vary, applicants are typically required to earn around 80% of the median income in their area.

Can I use a first-time home buyer grant for any home?
While you can use your grant to help cover the costs of many homes, there may be a limit in terms of the final sale value.

Are there any restrictions on how I can use my first-time home buyer grant?
As long as you use the funds to help pay for closing costs, there are no restrictions.