Best Grants for Building, Buying, or Repairing a Home

If you worry that safe, affordable housing is outside your financial reach, it’s worth investigating housing assistance programs.

In general, funding is prioritized for:

• First-time home buyers
• Low- and very-low-income home buyers or homeowners
• The elderly
• Veterans or active duty service members with disabilities
• Native American home buyers or homeowners
• Homeowners or renters impacted by natural disasters or other emergencies

Here's a breakdown of some of the best grants for building a home, plus programs for buying and repairing.

Home building grants and home renovation programs

HUD’s 203(k) Rehab Mortgage Insurance

Though fixer-uppers are often available at affordable sale prices, renovation costs can quickly add up. HUD’s 203(k) Rehab Mortgage Insurance program is designed to help home buyers purchase and renovate a property — without the high interest rates and short timelines other loans demand.

For the Standard 203(k) Mortgage, the proposed repairs must cost at least $5,000. But the total value of the property must remain within the local area’s FHA mortgage limit.

If your property qualifies, you can use this program to address a number of costly rehab projects, including structural alterations, improved energy efficiency, installing a well or septic system, and more.

For the Limited 203(k) Mortgage, you can access up to $35,000 to finance smaller repairs, improvements, and upgrades to your home.

Luxury and non-permanent items are generally ineligible for both the Standard and Limited 203(k) Mortgages.

Fannie Mae HomeStyle Renovation

Fannie Mae’s HomeStyle Renovation mortgage can be used to finance major home improvements and renovations. Down payments are as low as 3% for first-time buyers or buyers combining the renovation with a HomeReady mortgage. You can finance up to 75% of the home’s after-renovation value.

Unlike HUD’s 203(k) Rehab Mortgage, the HomeStyle Renovation mortgage can be used on any type of project, even luxury and non-permanent items.

However, for manufactured homes, financing is capped at either $50,000 or 50% of the property’s after-renovation value, whichever is lower.

VA’s Disability Housing Grants

If you’re a veteran or service member with certain service-connected disabilities, you may qualify for a US Department of Veterans Affairs disability housing grant. These grants can help you buy a home, or renovate your current home to meet your needs.

Depending on your specific disability, you may qualify for one of two grants.

The Specially Adapted Housing (SAH) grant allows veterans and service members to buy, build, or renovate their homes. In 2024, the maximum grant amount is $117,014, or $47,130 if you’re living in temporary housing.

The Special Home Adaptation (SHA) grant also provides funding for purchasing, building, or renovating a home. In 2024, the maximum grant amount is $23,444, or $8,415 if you’re living in temporary housing.

If you receive either of these grants, you don’t have to use the funding all at once — it can be spread over up to six separate transactions over your lifetime.

DOE’s Weatherization Assistance Program

Each year, the Department of Energy (DOE) Weatherization Assistance Program (WAP) helps low-income households reduce their annual energy costs by $372 or more on average.

To qualify, your household income needs to be under 200% of the local poverty income guidelines or you must receive Supplemental Security Income. However, some states or territories can choose to base requirements on 60% of the state median income.

Note that the program takes a "whole-house" approach to weatherization, often improving older homes’ overall safety. Along with energy-efficient improvements, participants might also receive help remediating mold, fixing roofing, or addressing other health and safety concerns.

Fannie Mae’s HomeStyle Energy

Fannie Mae’s HomeStyle Energy mortgage is another program that provides financing for energy-saving projects around your home. You can get financing for up to 15% of the after-renovation value of your home to use on energy-saving and disaster-resistant improvements, such as HVAC systems, smart thermostats, insulation, storm surge barriers, and fire zones.

Down payments are as low as 3%, and you can bundle the HomeStyle Energy mortgage with your regular mortgage for once-monthly payments.

While there are no special eligibility requirements, improvements above $3,500 may require a Home Energy Reporting System (HERS), Department of Energy (DOE), or similar report. The program also has a maximum loan-to-value (LTV) amount of 97%.

Habitat for Humanity

Some low- to moderate-income individuals can become homeowners through Habitat for Humanity. To qualify for a Habitat for Humanity home, your income must not exceed 60% of the area median and you must demonstrate a need for safe and affordable housing.

If selected, you’ll need to perform “sweat equity,” which usually involves helping to build your own house or other Habitat for Humanity homes. The sweat equity can also include taking homeownership classes or volunteering at a Habitat ReStore.

Finally, you’ll need to pay an affordable mortgage. Habitat for Humanity uses that money to build other houses. Habitat for Humanity says it ensures that mortgage payments will not exceed 30% of your gross monthly income at closing.

Home buying programs

Fannie Mae’s HomePath ReadyBuyer Program

The HomePath ReadyBuyer program provides up to 3% closing cost assistance and up to $2,500 in down payment assistance to first-time home buyers. To qualify, you’ll need to complete an interactive online course (available in Spanish and English) that will guide you through the home-buying process.

The only catch is that this offer only applies to HomePath properties — foreclosed homes that are owned by Fannie Mae. These homes are sold as is and may require significant repairs or improvements.

Fannie Mae’s HFA Preferred Mortgage

The HFA Preferred Mortgage program offers down payments of as low as 3% and reduced mortgage insurance premiums for low- and moderate-income home buyers. Unlike the ReadyBuyer program, you don’t need to be a first-time home buyer and there’s no education requirement.

In certain circumstances, lender-funded grants may also be available. However, you'll need to work with your state Housing Finance Agency (HFA) or an approved lender, which will set its own income limit requirements. As a result, eligibility varies by state.

The National Homebuyers Fund DPA Program

The National Homebuyers Fund, Inc. DPA program offers assistance with a down payment and/or closing costs — two upfront expenses that many buyers struggle to afford. Home buyers can receive up to 5% of the mortgage loan amount.

You don’t need to be a first-time home buyer to qualify, and you may be able to apply to the NHF DPA program to refinance your home. It’s available nationwide and compatible with a variety of common home loans.

However, you'll have to meet FICO, debt-to-income ratio, and income limit requirements. You’ll also have to work with one of NHF’s participating lenders.

HUD’s Revitalization Areas

Located across the US, Revitalization Areas are locations designated by the Department of Housing and Urban Development (HUD) under the National Housing Act.

Single-family homes within these Revitalization Areas may be eligible for two programs that offer discounted sales:

• Asset Control Area (ACA) program
• Good Neighbor Next Door (GNND) sales program

Under the ACA program, the Federal Housing Administration can offer steeply discounted pricing on certain foreclosed properties. These homes fall into three tiers:

• Properties appraised at $25,000 or less can be purchased for $100
• Properties appraised at more than $25,000 but less than $50,000 are discounted by $24,900
• All other properties are sold at a 50% discount on their appraised value

Under the GNND program, law enforcement officers, teachers, firefighters, and EMTs are eligible to purchase homes at a 50% discount on the listing price (provided that the property is in a Revitalization Area).

USDA’s Rural Development Loans

The US Department of Agriculture’s Section 502 Guaranteed Loan Program helps low- to moderate-income households buy, build, or renovate a home.

The program allows qualified applicants to purchase a home with no money down by providing a 90% loan note guarantee to approved lenders. To qualify, participants must purchase or own a home in an eligible rural area, use that home as their primary residence, and not have a household income higher than 115% of the area median.

HUD’s Section 184 Indian Home Loan Guarantee Program

HUD’s Section 184 Indian Home Loan Guarantee Program provides financial assistance for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. The program can be used both on and off tribal trust land.

The program allows Native borrowers to secure a home loan with a low down payment of 1.25% on loans under $50,000, or 2.25% on loans over $50,000. (Maximum loan limits vary by location.) This funding can be applied to buying, building, refinancing, or renovating your home.

All loans are 100% guaranteed by the Office of Loan Guarantee within HUD's Office of Native American Programs.

If you’re a Native American veteran, or a veteran married to a Native American, you may also qualify for the VA’s Native American Direct Loan (NADL) program.

Neighborhood Assistance Corporation of America (NACA) Mortgage

The Neighborhood Assistance Corporation of America (NACA) Mortgage provides home loans with no down payments and low interest rates to low- and moderate-income home buyers. There are no closing costs or mortgage insurance requirements.

To qualify, you’ll need to either have an income that’s less than 100% of the median income for the Metropolitan Statistical Area (MSA) or be purchasing a house in a US Census Tract where the median income is under 100% of the median income for that area’s MSA. You’ll also need to attend mandatory homeownership workshops.

Home repair grants

USDA’s Section 504 Home Repair Program

The USDA’s Section 504 Home Repair program provides up to a $40,000 loan to very-low-income homeowners who can't obtain an affordable loan elsewhere. Homeowners can use this funding to repair, improve, or modernize their homes.

Qualifying applicants who are 62 or older and cannot repay a loan may be eligible for a grant of up to $10,000. These funds can only be used to resolve health and safety hazards.

If a qualifying applicant can repay a portion of their loan, they may be eligible for a combination of loans and grants totaling up to $50,000.

FEMA Housing Assistance

If your home is damaged by a natural disaster or other emergency, you may be eligible for housing assistance from the Federal Emergency Management Agency (FEMA).

Qualified applicants can receive funding for temporary housing, home repairs, or even home replacement. You may also qualify for help paying for a wide range of other disaster-related expenses, ranging from childcare to medical bills.

Keep in mind that this financial support only applies to needs that are not covered by insurance. Applicants will also need to verify their identity and ownership or occupancy.

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