The first-time home buyer grant program allows new home buyers to receive up to $25,000 toward the purchase of their first home.

Since its inception in 2010, the program has helped millions of Americans find homes for their families.

However, it will only help a subset of new home buyers- those who meet certain criteria. Eligible applicants must meet certain requirements and apply by June 16, 2022.

Under the program, the Department of Housing and Urban Development (HUD) pays 100% of the eligible buyer’s down payment, closing costs, home insurance, and homeowner’s insurance premium for 12 months.

After 12 months, the program pays 50% of the eligible buyer’s monthly principal and interest payments on their mortgage loan.

The first $25,000 of monthly payments is covered by HUD. After that, the remaining payments are made by the eligible buyer on their mortgage loan.

In essence, $25,020 remains for the buyer’s monthly living expenses.

New applicants must meet the following requirements

to be considered for the First-Time Homebuyer Grant Program:

1. The buyer must be at least 18 years old at the time of purchase
2. The buyer must live in the home he or she purchases for two years as his/her principal residence
3. The home must be a one- to four-bedroom apartment or house within a city or metropolitan area with a population of over 100,000
4. The home must be within 20 miles of a job center with an average annual income of $60,000 or more
5. The buyer cannot owe more than $0 on his/her credit card or vehicle payments when applying for the grant
6. The credit score required should be at least 740 out of 900 possible points
7. The buyer’s total annual gross income should not exceed 120% of the Area Median Income for the area where he/her lives
8. No bankruptcy filings within the past 10 years
9. No felony convictions within the past 10 years
10. No tax liens or levies placed on their homes in the past six months
11. No two consecutive years of unemployment in the past 12 months
12. No bankruptcy filings within the past 10 years
13. No tax liens or levies placed on their homes in the past six months
14. No child support payments that are overdue more than 60 days in total arrears
15. No child support payments that are overdue more than 60 days in total arrears due to insufficient resources
16. No military discharge occurring more than 10 years before applying for assistance with first-time home buying
17. Ownership documentation – such as a copy of a deed or bill of sale – indicating their ownership of their primary residence at the time they apply for assistance with first-time home buying
18. A check from their bank verifying bank account balances greater than $0 and that they have a direct deposit account for their housing assistance payment

The first-time home buyer grant program provides up to $25,000 toward a down payment on eligible first purchase of a one- to four-bedroom apartment or house within a metropolitan area with high salaries and job growth rates.

The program is set to run through June 16, 2022, so eligible buyers can apply immediately if they meet these requirements.

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