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Program type · 1 of 5

Forgivable DPA grants
money you don't pay back.

A forgivable grant is the most generous form of DPA: a state, city, or nonprofit gives you money toward your down payment + closing costs, and forgives the debt once you've lived in the home for a set period — typically 5 to 10 years.

See if I qualifyAll program types →

How it works.

  1. Step 01

    You take the grant at closing.

    The agency wires funds to the title company. You sign a lien that secures the grant against the home.

  2. Step 02

    You live there.

    The grant is forgiven proportionally each year you stay. If you sell or move before the term ends, you pay back the unforgiven portion.

  3. Step 03

    Lien releases automatically.

    Once the forgiveness term hits zero, the lien lifts and the money's yours — no payment ever made.

What you need.

  • Primary residence (no investment properties)
  • Income at or below the program limit for your county
  • Often: a HUD-approved homebuyer education course
  • First-time buyer rules vary — many programs only require you haven't owned in the last 3 years

Real programs.

  • Atlanta HOPE

    GA

    Up to $25,000, fully forgiven after the residency term.

  • TSAHC My First Texas Home

    TX

    Up to 5% of the loan amount, forgiven over time.

  • Philadelphia Home Buy Now

    PA

    Up to $10K combining city + employer match, forgiven after 5 years.

Questions people ask.

What happens if I have to move before the forgiveness term ends?
Most programs prorate the payback — you owe the unforgiven portion. A few are all-or-nothing. We'll show you the exact terms in the app.
Does the grant count as taxable income?
No. Forgivable DPA grants are not treated as income by the IRS in the year you receive them — and the eventual forgiveness is similarly excluded.
Can I stack a forgivable grant with another DPA program?
Often, yes. Many borrowers combine a forgivable grant with a deferred second mortgage or an MCC tax credit. The cap is set by the first-mortgage program, not by us.

See which forgivable grants you qualify for.

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