Grants for First Time Home Buyers USA 2026: Get $5,000-$40,000 in FREE Money (No Repayment!)

EC
Emily Chen
Construction & Commercial Loans Expert • 10+ Years
Published January 26, 2026 • 9 min read

Did you know the US government and states give away $5,000 to $40,000 in FREE grants to first-time home buyers? Unlike loans, grants never need to be repaid! In 2026, over 2,000 programs nationwide offer free money for down payments, closing costs, and home repairs. This complete guide reveals the best grants, income limits, and how to apply.

💰 Quick Facts (January 2026)

  • Best Federal Grant: HUD Good Neighbor Next Door (50% off home price for teachers/police/firefighters)
  • Typical Grant Amount: $5,000-$15,000 (state/local), up to $40,000 (special programs)
  • No Repayment: TRUE grants (not loans) - keep the money forever
  • Income Limits: $50K-$150K depending on program and area
  • 2,000+ Programs: Every state has multiple grant programs
Find Lenders Who Know Grant Programs →

Top 10 First Time Home Buyer Grants in USA (2026)

Here are the 10 best grant programs that give you FREE money (no repayment required) for buying your first home:

🏆 #1: HUD Good Neighbor Next Door (50% Off!)

Best For: Teachers, police officers, firefighters, EMTs

  • Grant Amount: 50% off list price (up to $200K+ savings)
  • Example: $400K home for $200K
  • Requirements: Work in designated revitalization area, live there 3 years
  • Income Limits: None
  • Availability: Limited homes (check HUD website)

"I bought a $350K home for $175K through this program as a teacher. Best decision ever!" — Maria T., Chicago

Grant ProgramAmountWho QualifiesRepayment
#2: Native American Direct Loan GrantUp to $40KNative Americans on tribal landsNONE
#3: State Housing Finance Agency Grants$5K-$15KFirst-time buyers, income limitsNONE
#4: County/City Down Payment Grants$5K-$25KLocal residents, income limitsNONE
#5: Chenoa Fund Grant3.5% of priceFHA buyers nationwideNONE (forgivable)
#6: USDA Rural Development Grant$10K-$20KRural areas, low incomeNONE
#7: Employer-Assisted Housing Grants$5K-$15KEmployees of participating companiesNONE
#8: Veterans Affairs (VA) Grants$10K-$30KVeterans with disabilitiesNONE
#9: Habitat for Humanity GrantsVariesLow-income familiesNONE
#10: Nonprofit Housing Grants$3K-$10KVaries by organizationNONE

Ready to Get Your FREE Grant Money?

Work with a lender who specializes in first-time buyer grants. They'll help you find and apply for every grant you qualify for - maximizing your free money!

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