Grants & Forgivable Down Payment Assistance
Grants and forgivable assistance programs help reduce the upfront cash needed to buy a home. Some options are true grants. Others are “forgivable” loans that can be forgiven after you meet certain requirements, often including living in the home for a set period.
These programs can be especially powerful for buyers who qualify based on income limits, household size, profession, or location.
How Grants and Forgivable Assistance Work
Most grant or forgivable assistance programs fall into one of these buckets:
1) True grants
Funds do not need to be repaid if you meet the program rules.
Often limited, competitive, or available only in certain areas.
2) Forgivable loans
Assistance is structured as a second loan at closing.
You may not need to make monthly payments.
The balance can be forgiven after a required time period if you still live in the home and meet the guidelines.
3) Hybrid programs
Some programs combine a small grant with a larger second loan.
The second loan may be deferred, low interest, or forgivable depending on the program
Who These Programs Are Best For
These programs are often a great fit if you:
Have stable income and qualify for the monthly mortgage payment
Need help covering down payment and or closing costs
Plan to live in the home for several years
Meet income limits or household guidelines
Have a profession, live in a location, or have other factors that give you access to special programs
Examples of “special access” can include teachers, first responders, county or public employees, and location based eligibility such as certain cities, counties, or disaster recovery areas
Why buyers use grants and forgivable assistance
Common reasons buyers choose these programs:
Buy sooner instead of waiting years to save
Keep savings for emergencies, repairs, and moving costs
Reduce the amount of cash needed at closing
Improve affordability by using assistance to increase down payment amount
One important reality in Northern California: many buyers can handle a payment on a modest home, but the upfront cash required is what blocks them from buying in the areas they actually want to live
Common Program Requirements
Grant and forgivable programs can be fantastic, but they come with rules. Depending on the program, you may see:
Income limits
Homebuyer education requirements
Owner occupancy rules
Resale or refinance timing restrictions
Limited funding windows or availability
Slightly higher interest rates or closing costs on the first mortgage in exchange for the assistance
We will walk you through what matters and what does not for your exact situation.
Example Grant and Forgivable Programs
GSFA Platinum Programs
Hybrid assistance programs that often combine program granted gift funds with a second loan to help cover down payment and or closing costs.
Funding: Currently Available
Status: Actively accepting applications
GSFA RecoverCA
A location based assistance program designed for buyers living in counties affected by qualifying disaster events. The program offers a very large loan to cover down payment and closing costs that is forgiven over 5 years if program requirements are met.
Funding: Currently Available
Status: Actively accepting applications for their 2023/2024 Flood Program
Neighborhood LIFT
A down payment assistance initiative offered through participating lenders, typically structured as grant-like funds or a forgivable second lien with no monthly payments
Funding: Next round TBD
Status: Limited release cycles, availability varies by region
Chenoa Fund
A national down payment assistance option that provides a second loan toward down payment or closing costs, often used by buyers with limited savings or nontraditional credit profiles. Forgivable second loan options are available and there are no income limits.
Funding: Ongoing
Status: Available as long as program guidelines are met
Primary Residential Mortgage - Empower Program
A lender specific down payment assistance option offered through PRMI to help qualified buyers overcome upfront cash barriers when purchasing a home. Allows for credit scores down to 600 and has a forgivable second mortgage option.
Funding: Ongoing
Status: Available as long as program guidelines are met
Important Things to Know
Not all grants are available in every area
Income limits and loan amount caps can apply
Programs can be combined in some cases, but not always
Rules differ significantly between programs
Because of these differences, choosing the right program is not about finding the biggest grant. It is about finding the right fit for your situation and goals.
How We Help
We help buyers identify which grant and forgivable assistance programs they may qualify for and how those programs can be layered with the right mortgage option.
During your consultation, we will:
Review your eligibility across multiple programs
Explain how each program works in plain language
Show how assistance affects your cash to close and monthly payment
Help you avoid programs that may limit your flexibility later
Our goal is not just to help you buy a home, but to help you make a decision you feel confident about long term.
Check Your Eligibility
If you are curious whether grant or forgivable assistance could work for you, the next step is a quick eligibility check.
Most people complete it in just a few minutes. After you submit your information, a member of our team will reach out to schedule a no obligation consultation to walk through your options.
No obligation. Personalized guidance. Clear next steps.