Fannie Mae and Freddie Mac Homebuyer Grants: What's Real in 2026

By W.A. MacDonald, Retired Loan Officer | Updated November 2026

Fannie Mae and Freddie Mac do not run grant programs you can apply to. What they do offer is a $2,500 credit for very low-income first-time buyers who use a HomeReady or Home Possible loan. The bigger grant money comes from banks like Bank of America, Chase, and Wells Fargo, and from the Federal Home Loan Bank (FHLBank) system, where some buyers can get $15,000 to $60,000.

Here is how each program works, who qualifies, and how to find out which ones you can combine.

Quick Comparison

Program	Max Amount	Income Limit	First-Time Buyer?	Where to Apply
Fannie/Freddie VLIP credit	$2,500	50% of AMI or less	Yes (at least one borrower)	Any HomeReady or Home Possible lender
Bank of America grants	$10,000 + $7,500	Varies by area	Not required	Bank of America
Chase Homebuyer Grant	$2,500 or $5,000	Varies by area	Not required	Chase
Wells Fargo Homebuyer Access	$10,000	Varies by area	Not required	Wells Fargo
FHLBank Topeka HSP / HSP+	$15,000 / $25,000	80% of AMI or less	Yes	FHLBank member bank or credit union
FHLBank New York HDP suite	$30,000 each, $60,000 combined	Up to 80%, 120%, or 150% of AMI	Yes	FHLBank member bank or credit union

AMI means Area Median Income. Your lender can look up the AMI for the county where the home is located.

1. The Fannie Mae and Freddie Mac $2,500 Credit (VLIP)

This is the only direct help from the two agencies. Its official name is the Very Low-Income Purchase (VLIP) credit.

Amount: $2,500 toward your down payment or closing costs. You never pay it back.
Income: Your qualifying income must be at or below 50% of AMI for the property's location.
First-time buyer: At least one borrower must be a first-time homebuyer.
Loan type: You must use Fannie Mae HomeReady or Freddie Mac Home Possible.
How it is paid: The agency pays the credit to your lender, and the lender passes it to you at closing. You do not apply for it separately. Ask your loan officer to confirm they offer it.
Deadline: Both agencies extended the credit in early 2026 for one more year. Fannie Mae's cutoff is based on when Fannie buys the loan from your lender (through February 28, 2027), not your closing date. Lenders need time to deliver loans, so many set an earlier closing deadline. Ask your lender for theirs.

The loans behind the credit: HomeReady and Home Possible both allow as little as 3% down. On a one-unit home, you can cover the full down payment with gifts, grants, or a community second mortgage, with no minimum from your own savings. That is what makes these loans a good match for the bank and FHLBank grants below.

2. Bank Grants: Bigger Amounts, Tighter Rules

Bank grants are usually larger than the VLIP credit. The catch: you must get your mortgage from that bank, and the home or the buyer must be in an eligible area.

Bank of America (Community Homeownership Commitment)

Down Payment Grant: Up to $10,000 or 3% of the price, whichever is less. Available only in select markets and only with Bank of America's 3% down Affordable Loan Solution mortgage.
America's Home Grant: Up to $7,500 as a lender credit for closing costs or to buy down your rate.
Combined: Up to $17,500 if you qualify for both.
Status: Bank of America turned this into an ongoing program in 2026. It reports more than $600 million in down payment and closing cost grants to date.
Taxes: The Down Payment Grant may count as taxable income. Bank of America issues a Form 1099-MISC.

Chase Homebuyer Grant

Amount: $2,500 or $5,000, depending on the area and loan.
How it is applied: First to discount points, then to Chase fees, then to other closing costs or your down payment.
Rules: The home must be your primary residence and located in an eligible census tract. Most eligible tracts are low- to moderate-income areas.
How to check: Enter the address in Chase's Homebuyer Assistance Finder, then get a Chase Home Lending Advisor to confirm the amount in writing.

Wells Fargo Homebuyer Access Grant

Amount: $10,000. The full amount must go to your down payment. Wells Fargo cannot apply a partial amount.
Location: Either your current address or the home you buy must be in an eligible area. Wells Fargo has expanded the program several times, including to Pittsburgh. Use its online eligibility lookup.
Income: Limits vary by location.
Loan type: Wells Fargo fixed-rate conventional loans only. FHA, VA, USDA, adjustable-rate, and jumbo loans do not qualify.
Stacking: You can combine it with Wells Fargo's Dream. Plan. Home. closing cost credit (up to $5,000) and with outside down payment assistance.
Taxes: The grant may be reported on Form 1099-MISC and could affect income-based benefits. Talk to a tax advisor before you accept it.

3. The Federal Home Loan Bank System: The Most Overlooked Money

The FHLBank system is a network of 11 regional banks. Each one runs its own down payment grant program through local member banks and credit unions. These grants are often the largest available, but you cannot apply to an FHLBank directly. You must go through a participating member lender.

Funding is first come, first served. Rounds usually open in late winter and can run out within months, so start early.

FHLBank Topeka TurnKey (Colorado, Kansas, Nebraska, Oklahoma)

HSP: Up to $15,000 (minimum $2,500) for first-time buyers at or below 80% of AMI.
HSP+: Up to $25,000 for the same buyers purchasing in a high-cost area or a rural difficult development area.
HOPE: For buyers at or below 115% of AMI. You do not need to be a first-time buyer.
Requirements: HSP and HSP+ require a homebuyer education course. The grant is forgiven over five years. If you sell or refinance sooner, you may have to repay part of it.
Timing: The 2025 HSP funds were fully reserved before year end.

FHLBank New York Homebuyer Dream Program (New York, New Jersey, Puerto Rico, U.S. Virgin Islands)

All three grants require a first-time buyer and pay up to $30,000 per household, as set by the member lender.

HDP: Income at or below 80% of AMI. This grant carries a five-year retention period.
HDP Plus: Income above 80% and up to 120% of AMI in New York and New Jersey (up to 150% in Puerto Rico and the Virgin Islands). No retention period.
HDP Wealth Builder: For first-generation homebuyers with income up to 120% of AMI in New York and New Jersey (150% in Puerto Rico and the Virgin Islands). As of July 2026, the home no longer has to be in a majority-minority census tract.
Stacking: You can pair Wealth Builder with HDP or HDP Plus (not both) for up to $60,000.
Timing: The 2026 round closes November 27, 2026, or sooner if funds run out. The 2027 round opens February 8, 2027.

Other Regions

The other nine FHLBanks run similar programs. In Pennsylvania, Delaware, and West Virginia, for example, FHLBank Pittsburgh offers First Front Door. Ask any local bank or credit union if it is an FHLBank member and if it has grant funds left for the year.

4. How to Find the Grants You Qualify For

Know your income as a percent of AMI. At 50% or less, ask about the $2,500 VLIP credit. At 80% or less, FHLBank grants are your best target. Up to 120%, look at the bank grants, HDP Plus, and Wealth Builder.
Check the property address. Bank grants depend on location. Run every address you are serious about through the bank's lookup tool.
Call local banks and credit unions. Ask if they are FHLBank members and if they still have grant funds this year.
Ask about stacking. Some grants combine and some do not. A HomeReady or Home Possible loan with the VLIP credit plus an FHLBank grant is a common pairing. Have your lender price out every option.
Plan for taxes and retention. Ask if the grant will be reported as income and if you must stay in the home for a set number of years.

Frequently Asked Questions

Does Fannie Mae give first-time homebuyer grants?

Not directly. Fannie Mae offers a $2,500 credit through HomeReady loans for first-time buyers earning 50% of AMI or less. Freddie Mac offers the same credit through Home Possible. Your lender applies it at closing.

Can I combine the $2,500 credit with other grants?

Usually, yes. HomeReady and Home Possible allow grants and gifts to cover the down payment. Whether a specific bank or FHLBank grant can be added depends on that program's rules, so confirm with your lender.

Do I have to pay taxes on a homebuyer grant?

Some grants are reported to the IRS. Bank of America and Wells Fargo say their down payment grants may be reported on Form 1099-MISC. Check with a tax advisor before closing.

Do I have to pay back a homebuyer grant?

Most grants are never repaid if you follow the rules. Some FHLBank grants have a five-year retention period. If you sell or refinance early, you may owe part of the grant back.

Which grant pays the most?

FHLBank programs usually pay the most. FHLBank New York buyers who qualify for both HDP Wealth Builder and HDP or HDP Plus can receive up to $60,000. Bank grants top out around $10,000 to $17,500.

Program terms change often. The amounts and dates above were checked against lender and FHLBank sources in November 2026. Confirm current terms with your lender before you apply.