M&T Bank First-Time Homebuyer Grant Program

M&T Bank First-Time Homebuyer Grant Program is a grant for homebuyers in Delaware, administered by M&T Bank (Manufacturers and Traders Trust Company). M&T Bank offers grant funds to first-time homebuyers that can be applied toward the down payment (only permitted in certain areas), closing costs, other out-of-pocket costs, and mortgage insurance. The grant is available on purchase mortgages when the property securing the loan is located in a low-to-moderate-income (LMI) census tract and the borrower's income is at or below 80% of the HUD area median income in eligible counties, which include select Delaware counties. M&T also offers its exclusive Home Starter Mortgage (3% down, as little as 1% out of pocket, no borrower-paid mortgage insurance) that is available in select Delaware counties and can be paired with grant funds. Grant funds for down payment (in eligible areas), closing costs, out-of-pocket costs, and mortgage insurance. No repayment. Pairs with M&T Home Starter Mortgage (3% down / 1% out of pocket, no borrower-paid MI). Funding comes from M&T Bank (lender-funded; CRA/affordable lending).

M&T Bank First-Time Homebuyer Grant Program is structured as a grant, so it is not repaid. Repayment is triggered by None indicated - described as grant funds. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

M&T Bank First-Time Homebuyer Grant Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: Home Starter Mortgage allows non-traditional credit (rent/utility history) where credit history is insufficient; specific minimum not published. Residency requirement: Property must be a primary residence in an eligible Delaware county; for the grant, in an LMI census tract. Lender grant available in select Delaware counties (LMI census tract + borrower income at/below 80% AMI). Verified active on the official M&T 'Affordable Mortgages' page (modified May 2026). Down-payment use of grant funds is only permitted in certain areas.

M&T Bank First-Time Homebuyer Grant Program limits household income to 80% of the area median income, which varies by county and household size. For the grant, borrower income must be at or below 80% of the HUD area median income in eligible counties AND the property must be in an LMI census tract. For the Home Starter Mortgage, the income limit is 80% of AMI by household size unless the property is in an LMI census tract, in which case no income limit applies. Exact dollar figures by county/household size are not published. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

M&T Bank First-Time Homebuyer Grant Program can be used for Single Family, Condo, Townhouse, and 2-4 Unit.

M&T Bank First-Time Homebuyer Grant Program serves homebuyers purchasing anywhere in Delaware.

Applications for M&T Bank First-Time Homebuyer Grant Program go through M&T Bank (Manufacturers and Traders Trust Company), which publishes the current terms and the application steps on its own site. Funds are reserved through Through an M&T mortgage representative; eligibility tied to property census tract and borrower income. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.