Housing-related grants and assistance in the United States come primarily from the federal government — through HUD, USDA, the Department of Energy, the Department of Health and Human Services, and the Department of Veterans Affairs — with state and local agencies layering additional programs on top. Most flow to renters and to first-time, low-income, rural, or disabled buyers.
This page covers the major housing grant and assistance programs available in 2026 and how to apply.
Down-payment and homebuyer grants
Federal down-payment grants are administered through state and local Housing Finance Agencies (HFAs) and through specific federal programs:
- State HFA programs — every state operates a Housing Finance Agency that offers first-time homebuyer assistance, often including down-payment grants of $5,000–$15,000+ that may be forgivable after a residency period. Find your state's HFA via ncsha.org.
- HUD's Good Neighbor Next Door — eligible law enforcement officers, teachers, firefighters, and EMTs can buy HUD homes in revitalization areas at 50 % off list price if they live in the home for at least 36 months. Details at hud.gov/program_offices/housing/sfh/reo/goodn.
- USDA Section 502 Direct Loan — not a grant, but offers payment-subsidy as low as 1 % effective interest for very-low-income rural buyers.
- VA Home Loan — for service members and veterans. Not a grant, but no-down-payment financing.
See HUD's first-time home buyer resources and your state housing finance agency for current down-payment and closing-cost programs.
Home-repair and renovation grants
- USDA Section 504 Home Repair Loans and Grants — grants up to $10,000 (lifetime) for very-low-income elderly rural homeowners to remove health and safety hazards, plus loans up to $40,000 for repairs and modernization. See rd.usda.gov/programs-services/single-family-housing-programs.
- HUD HOME Investment Partnerships Program — passes funds to states and local jurisdictions, which run owner-occupied rehab programs locally.
- Specially Adapted Housing (SAH) Grant — VA grant up to roughly $117,000 (2026, statutory annual adjustment) for veterans with qualifying service-connected disabilities to build or modify a home. Confirm the current cap at va.gov/housing-assistance/disability-housing-grants.
- Special Housing Adaptation (SHA) Grant — smaller VA grant for specific qualifying conditions.
- Local rehabilitation grants — many cities and counties run owner-occupied rehab programs funded by HUD CDBG dollars.
Weatherization and utility assistance
- Weatherization Assistance Program (WAP) — the Department of Energy funds states to weatherize the homes of low-income households (insulation, air sealing, efficient heating equipment) at no cost to the resident. Average benefit is several thousand dollars in installed improvements. Apply through your state's WAP administering agency.
- LIHEAP (Low Income Home Energy Assistance Program) — HHS-funded, state-administered help paying heating and cooling bills. Crisis assistance is also available in many states. Apply through your state social-services agency.
- State emergency utility programs — supplement LIHEAP with one-time crisis grants.
Rental assistance
- Housing Choice Voucher Program (Section 8) — the largest federal rental-assistance program. Eligible very-low-income households pay roughly 30 % of income toward rent; the voucher covers the rest up to a payment standard. Administered by local public housing agencies (PHAs). Waitlists are long in many areas.
- Public Housing — federally subsidized housing owned and operated by local PHAs.
- Project-Based Section 8 — rental assistance attached to specific buildings.
- Section 811 / 202 — supportive housing for low-income people with disabilities (811) and seniors (202).
- Emergency Solutions Grants (ESG) — HUD funding to states and local governments for homeless prevention and shelter operations.
- Emergency Rental Assistance — many states retain residual emergency rental assistance funds through state-administered programs; check your state.
How to apply
- For homebuyer assistance — start at your state Housing Finance Agency. Most programs require a HUD-approved homebuyer education class (free or low-cost). Find a HUD-approved counselor at hud.gov/findacounselor.
- For Section 8 — apply at your local Public Housing Agency. Find your PHA at hud.gov/program_offices/public_indian_housing/pha/contacts.
- For USDA rural programs — contact your USDA Rural Development state office at rd.usda.gov/contact-us/state-offices.
- For WAP and LIHEAP — apply through your state's administering agency, typically a community-action agency.
- For VA housing grants — apply at va.gov/housing-assistance.
Legitimate federal and state housing programs never charge an application fee.
Common questions
Can I get a federal grant to pay my mortgage? Direct federal grants for mortgage payments are limited. The most relevant federal post-pandemic program was the Homeowner Assistance Fund (HAF), state-administered with limited remaining funds; check your state HFA. Otherwise, contact a HUD-approved housing counselor for foreclosure-prevention options.
Are first-time homebuyer grants really free money? Many are forgivable loans that convert to grants only after you've occupied the property for a required period (often 5–10 years). Read the agreement carefully — if you sell or refinance early, you may owe money back.
How long is the Section 8 waitlist? It varies dramatically by jurisdiction — from months in low-demand areas to over a decade in high-demand metros. Many PHAs close their waitlists when they are full and reopen periodically.
Are these programs taxable? Most housing-assistance grants for owner-occupant use are not taxable income. Consult a tax professional for your specific situation.
In this section
- Grants for first-time home buyers — down-payment assistance and FHA-aligned programs
- Housing Choice Voucher Program (Section 8) — federal rental assistance
- Home improvement grants — repair, weatherization, and accessibility programs
- State grants — state Housing Finance Agency programs by state