The Federal Housing Administration has launched a groundbreaking down payment assistance program specifically designed for first-generation homebuyers — individuals whose parents never owned a home — offering grants of up to $25,000.
Program Details
The First-Generation Homebuyer Assistance Program provides non-repayable grants that can be used toward down payment and closing costs on FHA-insured mortgages.
- Grants of $15,000 to $25,000 based on area median income and home price
- Applicants must demonstrate no parent or guardian owned residential property
- Income limit set at 120% of area median income
- Properties must be primary residences under the conforming loan limit
- $850 million in initial funding expected to assist approximately 40,000 buyers
Addressing the Wealth Gap
Research shows that parental homeownership is the strongest predictor of whether someone will own a home. This program aims to break the generational cycle of renting by eliminating the largest barrier to first-time purchases for those without family financial support.
