This $20,000 Grant Will Help You Buy a Home in 2025

If you’ve been thinking about buying a home but need some additional assistance for your down payment or closing costs, the Federal Home Loan Bank (FHLB) Homeownership Grant Program might be exactly what you need. Whether you’re a first-time buyer or you've purchased a home before, this grant could be your ticket to the closing table. There are three options available, depending on your employment and income. In this blog, I’ll break down the intricacies of the program to help you decide if it’s the right fit for you. If you’re a visual learner, check out the video below:

1. First-Time Homebuyer Grant – Up to $17,500

Let’s start with the grant that most people qualify for—the First-Time Homebuyer Program. This option provides up to $17,500 in forgivable assistance for buyers who meet the income and ownership criteria.

To qualify, you must:

• Be a first-time homebuyer (defined as someone who has not owned a home in the last three years).

• Use the home as your primary residence.

• Have a household income at or below 80% of the Area Median Income (AMI) for your county.

In the DMV area, that means different things depending on your household size. A single buyer might have an income limit of around $82,000, while a family of four could qualify with an income up to $117,000.

You can find the AMI for your area by visiting HUD’s Website, then selecting your state and county to view the current income thresholds by household size.

The grant is forgivable after five years, so you don’t need to repay it as long as you own and occupy the home. Every year, 20% of the grant is forgiven. If you move or sell in year four, you’d only need to repay 20% of the grant amount.

2. Workforce Housing Plus Grant – Up to $15,000

If your income is too high to qualify for the First-Time Homebuyer grant, there’s another option: Workforce Housing Plus. This program is designed for homebuyers earning between 80% and 120% of AMI.

You can receive up to $15,000 in forgivable grant funds to cover your down payment or closing costs. Unlike the first-time buyer grant, this option is available to both first-time and repeat buyers.

The best part is— there’s no occupancy period or retention requirement. The money is forgiven immediately at closing. That makes this as close to free cash as you’ll get in real estate.

If you’ve previously been told you make “too much” to qualify for down payment assistance, this might be the solution you’ve been waiting for.

3. Community Partners Grant – Up to $20,000

This grant is designed for the dedicated individuals who serve our communities. If you’re a teacher, police officer (active or retired), nurse, healthcare worker, firefighter, first responder, or military personnel (active or veteran), you may qualify for up to $20,000. This includes both first-time and repeat homebuyers.

Like the First-Time Homebuyer Grant, the Community Partners Grant is forgivable after five years of occupancy. There are no credit score or debt-to-income requirements written into the program guidelines, but you will still need to qualify for a standard FHA or conventional mortgage.

How To Get Started

To access this program, you must work with a lender that is a member bank of the Federal Home Loan Bank system. Not every mortgage lender qualifies—some major institutions like Bank of America and Wells Fargo are not part of the FHLB program. To simplify the process for you, I’ve compiled a short list of approved local institutions with whom I’ve previously partnered. For a direct connection to one of my trusted partners, ensuring timely communication and exceptional service, please email me.

     Capital Bank                                                                                                  EagleBank

     Sandy Spring Bank                                                                    Tower Federal Credit Union

       City First Bank                                                                                    Industrial Bank

No matter which program you qualify for, there are a few shared requirements:

• You must contribute at least $1,000 of your own funds toward the purchase.

• The property must be your primary residence.

• You cannot currently own real estate in the U.S. at the time of closing.

• You must complete a homebuyer education course, typically online, before closing.

Once pre-approved with an FHLB member bank, you can begin shopping for a home. Grant funds can only be reserved once you’re under contract, so timing is everything. Funds are released on a first-come, first-served basis, and they do run out each year—so don’t delay if you’re serious.

One more important thing: this grant can be stacked with other local and state programs. Whether using DC Open Doors, HPAP, or the Maryland Mortgage Program, FHLB can often be layered on top to reduce your cash-to-close amount. I’ve had clients buy their first home with very little out of pocket using this strategy.

Don't Count Yourself Out

The FHLB grant is a great option for buyers because of its simplicity, flexibility, and generous funding. Whether you’re a first-time buyer, a working professional, or a public servant, this grant can greatly reduce your out-of-pocket expenses.

If you want help understanding your options, let’s talk. I can connect you with a lender who’s actively offering these programs and walk you through the next steps.

📩 Reach out to me directly or schedule a time on my calendar, and let’s build a strategy to help you buy your next home with as little out-of-pocket as possible.