Core Insights - First-time homebuyer grants provide financial assistance for down payments and closing costs, and do not require repayment [2][3] Group 1: Definition and Purpose - First-time homebuyer grants are designed to assist individuals in covering down payments and closing costs for purchasing a home [2] - These grants differ from other down payment assistance programs that may require repayment or specific conditions for forgiveness [3] Group 2: Qualification Criteria - Eligibility for first-time homebuyer grants typically targets low- to moderate-income borrowers, defined as households earning 80% or less of the area median income (AMI) for low-income and between 80% to 100% of AMI for moderate income [4] - Common requirements for grant programs include income limits, borrower contributions, residency status, and completion of a homebuyer education course [7] Group 3: Examples of Grant Programs - The National Homebuyers Fund offers grants up to 5% of the home's purchase price for down payments and closing costs, applicable to both first-time and repeat homebuyers [5] - Bank of America provides two grant options: the America's Home Grant, offering up to $7,500 in lender credits for closing costs, and the Down Payment Grant, which provides up to $10,000 for down payments, with specific conditions regarding mortgage sourcing and potential tax implications [6]