Here at Homebuyerwallet.com, we always say that homeownership is easier than what most people realize. There are numerous Community Home Investment Programs (CHIPs) available today that are meant to make homeownership easier for many consumers. Many of these programs are loans, but there are also first-time homebuyer grants that do not have to be repaid at all.
In this article, we will go through some of the first-time homebuyer grants that can be found on Homebuyerwallwet.com and how you can use them to your advantage.
What Are CHIPs?
Community Home Investment Programs, or CHIPs as we like to call them, are programs that are designed to help homebuyers during the buying process. These programs are usually meant to ease the financial burden of buying a house. The most common type of CHIP, for example, is the Down Payment Assistance or the DPA.
A DPA is meant to help a homebuyer cover the down payment of a house by providing a loan. The payment for the loan can be stretched over several years. These programs are provided by federal, state, and local governments. Nonprofits and private corporations also offer CHIPs to qualified individuals.
Homebuyerwallet.com gathers information regarding these CHIPs in one platform to make it convenient for homebuyers and real estate professionals to find them.
What Are Homebuyer Grants?
Another type of CHIP, although not as common as a DPA, is the homebuyer grant.
Homebuyer grants are financial programs that provide funds to eligible buyers for home purchases, typically without requiring repayment if certain conditions are met. Unlike loans, these grants offer “investments” to help cover down payments, closing costs, or other homebuying expenses, making homeownership more accessible to individuals and families who might otherwise struggle to afford the upfront costs.
Eligibility requirements vary by program and may include income limits, geographic restrictions, or occupancy requirements. Homebuyer grants typically require recipients to complete homebuyer education courses and may include provisions requiring repayment if the home is sold within a certain timeframe or if the buyer fails to meet program conditions.
List of Homebuyer Grants on Homebuyerwallet.com
Here are some of the free Down payment grants and other first-time homebuyer grants that consumers can find on Homebuyerwallet.com.
Ameris Down Payment Grant Program (also references Ameris Dream and other DPAs)
This CHIP is available in Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia. First-time homebuyers in those states can access up to $6,000 for down payment and closing costs. This program, requiring only $500 to start, offers assistance that generally becomes fully forgiven after about five years, meaning no long-term repayment.
Colorado Housing and Finance Authority Colorado Down Payment Assistance Fund (Colorado DPA)
With this CHIP from the Colorado Housing and Finance Authority, you can receive up to $25,000 as a grant that never needs to be repaid. You’ll be ready to buy with confidence anywhere in Colorado in no time.
Wells Fargo $10,000 Homebuyer Access Grant
Wells Fargo is offering a $10,000 Homebuyer Access Grant for down payments on single-family attached and detached homes. This non-repayable grant is expanding its reach across multiple states, targeting specific metropolitan areas.
Community Development Block Grant, City of Hagerstown
Buy newly renovated homes with competitive pricing, available for qualified homebuyers. Maximize your benefits by combining this program with other housing investment options.
How to Apply for Grants
Applying for homebuyer grants requires careful research, preparation, and timely action due to the competitive nature of these programs. Start by identifying available grants in your area through Homebuyerwallet.com. Once you’ve identified suitable programs, gather required documentation, including proof of income, employment verification, credit reports, bank statements, and completion certificates from mandatory homebuyer education courses, which are required by most grant programs.
Submit applications as early as possible when funding becomes available, as many programs operate on a first-come, first-served basis and can exhaust funds quickly; some popular programs close within days or weeks of opening.
It is best if you work with a knowledgeable real estate agent and approved lender who understands grant program requirements, as they can help coordinate application timing with your home purchase timeline and ensure all program conditions are met.
Be prepared to demonstrate that you meet income limits (typically set at or below area median income), complete homebuyer counseling sessions, and commit to using the property as your primary residence for a specified period, usually three to five years, to avoid repayment obligations.
Usual Grant Qualifications
Usual homebuyer grant qualifications include:
- Being a first-time homebuyer, typically defined as not having owned a home in the past three to five years, though some programs extend this to include divorced individuals or single parents who previously owned with a spouse.
- Income limits are standard requirements, generally set at or below 80% to 120% of the area median income (AMI), which varies by location and family size. For example, a family of four in many areas might qualify with a household income of up to $75,000-$100,000 annually.
- Most programs require completion of homebuyer education courses or counseling sessions to ensure applicants understand homeownership responsibilities and financial management.
- The purchased home must serve as the buyer’s primary residence, not an investment or vacation property, and remain the primary residence for a specified period, typically three to five years, to avoid repayment obligations.
- Credit score requirements vary, but generally require a minimum score between 580-640, though some programs are more flexible for buyers with compensating factors like stable employment or significant savings.
- Employment stability is often required, with many programs asking for at least two years of steady work history in the same field.
- Geographic restrictions apply to most programs, limiting assistance to specific counties, cities, or regions, while some grants target particular professions such as teachers, healthcare workers, law enforcement officers, or military personnel.
Additional requirements may include debt-to-income ratio limits, typically not exceeding 43-50%, and restrictions on the home’s purchase price, which must fall within local conforming loan limits or program-specific maximums.
How to Use Homebuyerwallet.com
Information about the first-time homebuyer grants listed here and all other CHIPs available can be accessed on Homebuyerwallet.com. A user must sign up first before accessing all the details of the CHIPs on the platform. Each CHIP also has details on the contact details of the provider and how to proceed if a homebuyer is interested in using it.
If you would like to use first-time homebuyer grants when you’re buying a house, then get started with Homebuyerwallet.com now.
