How much free money can I get for a down payment in 2027?

Typical amounts: state DPA programs average $10K-$25K; high-cost states offer more (CalHFA up to ~$150K in combined assistance, NYC HomeFirst up to $100K). Most programs cap assistance at 3-5% of the purchase price. Stacking is legal in most states: state grant + city grant + seller concession + lender credit can cover 100% of down payment AND part of closing costs on the right deal.

What credit score do I need for down payment assistance?

Most DPA programs require 620-680 minimum, with the best terms at 680+. Some programs accept 580-620 when paired with FHA financing. Income limits also apply — typically 80-140% of area median income (AMI), so households earning $70K-$120K qualify in most metros. Debt-to-income caps usually sit at 43-50%.

How do I apply for first-time homebuyer grants?

The sequence matters: (1) Get pre-approved first — most programs require a participating lender; (2) Take the required homebuyer education course (usually $75-100, online, 6-8 hours); (3) Apply through the state HFA or local program — many are first-come, first-served and funds run out mid-year; (4) Close using a program-approved lender. Apply early in the calendar year — popular programs exhaust funds by summer.

FREE MONEY — UPDATED OCTOBER 2026

First-Time Homebuyer Grants 2027: $5K-$150K in Free Money (All 50 States)

Q: What first-time homebuyer grants are available in 2027?

In 2027, first-time buyers can access: (1) State DPA grants — $5K-$150K depending on state, often forgivable after 5-15 years; (2) FHA loans with 3.5% down at 580+ credit; (3) VA and USDA loans at $0 down; (4) Local/city grants stacking on state programs; (5) Employer-assisted housing programs; (6) MCC tax credits worth up to $2,000/year for the life of the loan. "First-time buyer" = anyone who has not owned a home in 3 years — many repeat buyers qualify.

Q: Do I have to pay back homebuyer grants?

It depends on the type. True grants (like some state DPA and community programs) never require repayment. Forgivable loans are forgiven after you live in the home 5-15 years — sell earlier and you repay a prorated amount. Deferred "silent second" loans require repayment only when you sell or refinance. Always check the forgiveness schedule before signing — a $15K "grant" that is actually a deferred loan still works, but the math changes.

Most buyers leave $10,000-$25,000 on the table because they never apply. State DPA grants, forgivable loans, $0-down programs, and MCC tax credits — here's every dollar available in 2027 and how to claim yours before funds run out.

$150K

Max Assistance (CA/NY)

$10-25K

Typical State Grant

Down (VA/USDA)

620+

Credit Most Programs

Find My DPA Options — Free →

Mortgage-Info.com Editorial Team

Editorial & Research Team

October 30, 202615 minEditorial

Mortgage rates and market trendsFHA, VA, USDA and conventional loan programsRefinancing strategies

Quick Answer: Yes, the Money Is Real

Every state runs DPA programs giving buyers $5K-$150K in grants and forgivable loans. Qualification: not owned a home in 3 years + 620+ credit + income under ~80-140% of area median. The catch: funds are first-come, first-served and popular programs run dry mid-year. Find programs you qualify for →

The 6 Types of Free Money in 2027

Program Type	Amount	Repay?	Credit Needed	Best For
State DPA grants	$5K-$50K	No (true grants) or forgiven 5-15 yrs	620-680	Most first-time buyers
Forgivable loans	$10K-$150K	Forgiven if you stay 5-15 yrs	620+	High-cost states
Deferred 2nd loans	3-5% of price	Only on sale/refi	620+	Stretching buying power
$0-down (VA/USDA)	100% financing	N/A — it IS the loan	VA: lender varies / USDA: 640	Vets + rural buyers
City/county grants	$5K-$50K	Varies — stacks on state	620+	Major metros
MCC tax credits	Up to $2,000/yr	No — it's a tax credit	Lender rules	Every year of ownership

Get Pre-Approved — Required for Most Grant Programs →

Biggest Grant Programs by State (2027)

✓

California — CalHFA

Up to ~$150K combined (forgivable + deferred loans + MCC)

✓

New York — SONYMA + HomeFirst

Up to $100K (NYC HomeFirst DPA)

✓

Texas — TSAHC/TDHCA

$6K-$15K forgivable DPA + MCC $2K/yr

✓

Florida — Hometown Heroes + FL HFA

Up to $35K (5% of loan, deferred)

✓

Georgia — Dream + Intown

$10K-$22.5K deferred at 0%

✓

North Carolina — NCHFA

Up to $15K, 0% forgivable over 15 yrs

✓

Tennessee — THDA Great Choice

$6K forgivable or $15K amortizing

✓

Illinois — IHDA

$7.5K-$10K + Access programs

Every state has a program — and counties/cities add their own on top. See what's available where you're buying →

The Stacking Strategy: How Buyers Get to $0 Out of Pocket

Programs legally stack in most states. Example on a $300K purchase:

State forgivable DPA+$15,000

County/city grant+$7,500

Seller concession (negotiated)+$6,000

Lender credit (slightly higher rate)+$3,000

MCC credit (year 1 tax savings)+$2,000

Total assistance$33,500

Covers FHA 3.5% down ($10,500) + ALL closing costs + first-year tax savings — with money left over.

Most Programs Require Pre-Approval First

Get Pre-Approved, Then Claim Your Grant Money

Nearly every DPA program requires a participating lender BEFORE you apply for funds. A pre-approval also tells you exactly which programs fit your price range.

Get Pre-Approved Free →Find My DPA Programs →

Free • Minutes • Shows programs you qualify for

Timing Rule: Apply Early in the Year

Most state DPA programs are funded annually on a first-come, first-served basis. High-demand programs (CA, TX, FL metros) routinely exhaust funds by mid-year. For 2027 money: get pre-approved in December-January, complete homebuyer education, and file applications as soon as program windows open. Late applicants wait for the next funding cycle. Start pre-approval now →

Frequently Asked Questions

What first-time homebuyer grants are available in 2027?

State DPA grants ($5K-$150K), forgivable loans, FHA 3.5% down, VA/USDA $0 down, city grants, employer programs, and MCC credits up to $2K/yr. "First-time" = no ownership in 3 years. Find my options →

Do I have to pay back homebuyer grants?

True grants: never. Forgivable loans: only if you sell/refi before the forgiveness period (5-15 yrs). Deferred seconds: repaid on sale. Compare DPA programs →

How much free money can I get?

Typical: $10K-$25K state DPA; up to $150K stacked in CA/NY. Most programs cap at 3-5% of purchase price — but stacking state + city + seller + lender credits can cover everything. Get pre-approved →

What credit score do I need?

620-680 for most programs; some accept 580 with FHA. Income limits ~80-140% AMI — households earning $70K-$120K qualify in most metros. See FHA lenders →

How do I apply?

Pre-approval first (programs require participating lenders), then homebuyer education ($75-100 online), then state HFA application. Apply early in the year — funds run out. Start pre-approval →

Free money expires. Get pre-approved now so you're first in line when 2027 program windows open.

Get Pre-Approved Free →

Related Guides

DPA Programs 2027: Grants by State

First-Time Homebuyer Grants Database

Buy a House With No Money Down

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