Closing cost assistance programs are designed to help low-to-moderate-income homebuyers pay for mortgage closing costs when they buy a home. By helping homebuyers pay these costs, closing cost assistance programs make home ownership more attainable. Additionally, these programs free up more money for homebuyers to spend on their down payment, potentially enabling them to qualify for a larger mortgage and afford a better home.
Most closing cost assistance programs are structured as a grant to the homebuyer. When assistance is provided by a state or local housing agency or commission — which is usually the case — the grant recipient is only required to repay the grant if the home is sold, refinanced or vacated within a predetermined number of years, typically five years or greater. If the home buyer sells, refinances or moves out of the property during the predetermined number of years the grant must be repaid, typically on a prorated basis based on the number of years the buyer has lived in the home.
Find out more about our state and local housing agency closing cost assistance below.
