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From the Real Estate Hotline

By: Real Estate Hotline
Spring 2025 (Vol. 43, No. 1)

Q: I have been renting all my life and I just can’t seem to save enough to buy a home. Are there any programs available to help me take that next step?

A: Yes! Homebuyer assistance programs offer a variety of financial help including down payment assistance, low interest loans and credit forgiveness. These programs usually don’t have a big advertising budget so you will need to search. Start by checking your state’s housing finance agency website. Also check with your city or county housing department or community development section. A local realtor or lender who specializes in homebuyer assistance is a good resource as well. There are also programs to help you maintain your home with grants or forgivable loans for repairs.

Go to www.answers.hud.gov to find a housing counseling program near you. Check out www.211.org for a national directory of community resources that can connect you with local housing program opportunities. Be sure to sign up for notices of new programs, especially at the local level as programs can change frequently. Here is a list of some current assistance offers:

Federal Government Programs include:

  • U.S. Department of Housing and Urban Development (HUD) – Offers FHA loans and housing counseling.

  • USDA Rural Development – Provides Section 502 Direct Loans for rural homebuyers.

  • VA Home Loans – Zero-down-payment mortgages for veterans and service members.

  • Good Neighbor Next Door Program (HUD)– Discounts for teachers, first responders, and nurses.

  • HUD Section 8 Homeownership Voucher Program – Converts rental vouchers to mortgage assistance.

  • HOME Investment Partnerships Program (HUD) – Funds state/local down payment assistance.

  • Federal Home Loan Bank (FHLB) Affordable Housing Program – Grants for low-income households.

  • Native American Direct Loan (NADL) Program (VA) – Loans for Native American veterans.

  • Indian Home Loan Guarantee Program (HUD Section 184) – Low-down-payment loans for tribal members.

  • Energy Efficient Mortgages (EEMs) – FHA/VA loans for energy-efficient home upgrades.

  • USDA Single Family Housing Repair Loans & Grants (Section 504) – Repairs for rural homeowners.

State Government Agencies that offer assistance include:

  • California Housing Finance Agency (CalHFA) – Down payment assistance and first-time buyer loans.

  • Texas Department of Housing and Community Affairs (TDHCA) – Texas Home Buyer Program.

  • Florida Housing Finance Corporation – Florida Assist and Mortgage Credit Certificates.

  • New York State Homes and Community Renewal (NYHCR) – Affordable homeownership programs.

  • Massachusetts Housing Partnership (MHP) – SoftSecond and ONE Mortgage programs.

  • Pennsylvania Housing Finance Agency (PHFA) – Grants and low-interest loans.

  • Georgia Dream Homeownership Program – Down payment assistance for GA residents.

  • Michigan State Housing Development Authority (MSHDA) – MI Home Loan and grants.

  • Ohio Housing Finance Agency (OHFA) – YourChoice! Down Payment Assistance.

  • Minnesota Housing Finance Agency – Start Up and Step Up loans.

  • New Jersey Housing and Mortgage Finance Agency (NJHMFA)– First-Time Homebuyer Program.

  • Colorado Housing and Finance Authority (CHFA) – Down payment assistance grants.

  • Tennessee Housing Development Agency (THDA)– Great Choice Home Loan program.

  • Washington State Housing Finance Commission– Home Advantage and down payment assistance.

  • Arizona Department of Housing – Home Plus and Pathway to Purchase programs.

  • Illinois Housing Development Authority (IHDA) – Access Forgivable and Deferred Payment loans.

  • North Carolina Housing Finance Agency – NC Home Advantage Mortgage.

  • Virginia Housing Development Authority (VHDA) – Closing cost grants and FHA loans.

  • Oregon Housing and Community Services – Oregon Bond Residential Loan Program.

Local Government Programs include:

  • New York City Housing Preservation and Development (HPD) – HomeFirst Down Payment Assistance.

  • Los Angeles Housing Department (LAHD) – Lowincome homebuyer loans.

  • City of Phoenix Home in Five Program – Assistance with down payments.

  • Chicago Department of Housing – Affordable homeownership initiatives.

  • Miami-Dade County Surtax Homebuyer Assistance Program – Income-based assistance.

Nonprofit Organizations include:

  • Habitat for Humanity – Builds affordable homes with sweat equity.

  • NeighborWorks America – Network of local homeownership nonprofits.

  • National Homebuyers Fund (NHF) – Down payment assistance grants.

  • Mercy Housing – Affordable housing and financial counseling.

  • Enterprise Community Partners – Supports affordable housing initiatives.

  • Local Initiatives Support Corporation (LISC) – Funds community development.

  • Operation HOPE – Financial literacy and down payment assistance.

  • CHC Affordable Housing – Focuses on rural and underserved areas.

  • Self-Help Enterprises – Homebuyer assistance in California’s Central Valley.

  • Community Action Agencies (CAAs) – Local nonprofits offering housing grants (e.g., CAP agencies).

Don’t overlook your workplace benefits. Federal Government Employees may be eligible for down payment assistance and low interest loans through the Hero Home, Public Servant Next Door or Mortgages for Champions program. Many companies offer education and counseling. Some employers administer aid through an EAHP (Employer Assisted Housing Program). Amazon offers employees a $2 billion Housing Equity Fund with below market loans and grants. Walmart provides mortgage and closing costs subsidies to qualifying employees. Freddie Mac has their own Home Benefit program for staff that includes $15,000 for first-time homebuyers.

Q: I have purchased a home before but my husband has never owned. Will he be disqualified as a first-time homebuyer because of my prior purchase?

A: No. For most assistance programs the term ‘first-time homebuyer’ means you cannot have owned your primary residence in the last three years.

Q: Do I have to pay back the money I get or are the loans forgivable?

A: That depends on the program. Here are some terms you will need to be familiar with:

  • Grants are paid upfront to cover expenses like down payments and closing costs. They are typically one-time payments that don’t have to be repaid.

  • Second Mortgages or soft seconds are loans given to cover the down payment and other costs. These are repaid.

  • Forgivable loans are mortgages that allow you to purchase but they will be forgiven if you stay in the property for a specific period of time.

  • Deferred loans don’t require the borrower to make monthly payments, but the full amount of the the loan is due when the property is sold.

  • Mortgage Credit Certificates (MCC) are federal income tax credits that can offset your mortgage cost and make it easier for you to afford the loan.

Q: Do housing programs offer help besides buyer assistance?

A: Yes. You can use many of the resources listed in this article to find solutions for a variety of housing concerns including loans or grants for repairs on an existing home or foreclosure and eviction assistance. Homeowner Assistance Funds (HAF) provide mortgage payment and utilities assistance to homeowners facing hardships due to current events like natural disasters or the pandemic. Look for Emergency Housing Assistance if you need temporary housing in times of crisis. Homeownership vouchers help low income tenants graduate from rent vouchers to paying for their own home. Google Eviction and Foreclosure Assistance for local help navigating solutions when you cannot pay your rent or mortgage.

Q: Are there any negatives to using a buyer assistance program?

A: While the programs can help you buy a home sooner, not all lenders will accept all assistance plans. You will need to do your homework to find a lender and realtor who will understand and accommodate your needs. If your income is higher, you may not qualify for free money and you may end up paying back the down payment when you sell your home or you may be required to live in the home for a specific number of years to avoid a payback penalty.