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Grants for Homebuyers (and what happened to that $25,000 first-time homebuyer grant)

What you need to know about government funding for a new home:


The tricky thing about qualifying for a grant or DPA is that you can’t make too much or too little money. If your income is above the median income for your area, then it’s probably too high. But you must have the income needed to qualify for the main mortgage.


You must be employed for two years (or have college plus employment for two years). If you’re self-employed, it must be for two years. If you have a part-time side gig, you must have had it for two years and declare the income on your tax returns. Under-the-table cash earnings don’t count.

Your credit must qualify also. Often that means a middle credit score that is 620, with the lowest score of the three ignored.

What Happened to the $25,000 First-Time Homebuyer Grant?

The Downpayment for Equity Act of 2021, commonly called “The $25,000 First-Time Homebuyer Grant” was introduced as a bill in April 2021. It received a ton of publicity with articles by pretty much every financial writer.

However, the bill never made it out of Committee for voting by Congress. From what I can tell, the bill was not fully developed. It included nothing about how the federal government would get the funds to the individual states to pass on to mortgage closers. You can’t eat a pie if the ingredients are not stirred together and baked, right? So then when 2023 arrived, the bill automatically expired.

A new bill for a grant will need to be written and introduced, then passed into law. Hopefully, next time, it will be better written so that it doesn’t stall forever and then die.

To find out what specific programs are available in your own state, you can reach out to a local mortgage broker.

If you want to become a homeowner but you can tell from the information above that you don’t qualify, don’t give up. Make a plan for getting your credit and income on track, then stay true to your plan. If you could benefit from a big dose of inspiration and a lot of great financial tips, then I recommend Credit Repair Mindset, available on Amazon in both paperback and Kindle.

Available on Amazon
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