Mortgage Assistance Grants

••• new home 4 image by Kathy Burns from

Many different home mortgage assistance grants are available for those who are eligible. Most are overseen by the federal government and administered by local entities like municipal and nonprofit organizations. Depending on the requirements and your home mortgage needs, you may be eligible for this type of grant.

Grant Definition

Anytime the word “grant” is mentioned, the typical assumption is that it does not have to be paid back. You could further assume that a “mortgage assistance grant” would not have to be repaid. That is not always the case, however. In addition, a mortgage assistance grant usually has certain requirements that must be met before the grant is made.

Grant Origins

A variety of mortgage assistance grants are accessible, mostly because of the state of the nation's economy and housing market. The majority of those offered to the public originate from the federal government. Most federal mortgage assistance grants stem from the American Recovery and Reinvestment Act (ARRA) and are under the oversight of a U.S. Housing and Urban Development (HUD) program. They are administered by state, county or local governments or nonprofit entities.

Grant Types

There are several sources of government mortgage assistance grants, including the Worker, Homeownership and Business Assistance Act of 2009; the Homeownership Voucher Program; state-sponsored grants; and county, municipal and nonprofit programs.

The Worker, Homeownership and Business Assistance Act of 2009 extended and expanded the first-time home buyer tax credit. This is a grant that provides an $8,000 maximum tax credit and was extended this year to include current homeowners who meet eligibility requirements. If you are approved, you will receive a credit on the final tally of your taxes due for that year. If you qualify for the maximum and owe nothing, you get $8,000 back from the government.

Home Ownership Vouchers is a program offered to first-time home buyers by HUD and administered by a local public housing authority (PHA). If you are eligible, you can receive help paying your mortgage. This program also assists with other expenses related to homeownership. To receive the benefit, you must work with a local PHA.

States, counties, municipalities and nonprofit groups were awarded a portion of the $13.61 billion allocated from the ARRA to address housing. HUD is overseeing the awards made to each group to administer the expenditures. If you are interested in the programs available in your state, contact your state or local housing authority.


When a mortgage assistance grant is offered, the home buyer needs to understand its provisions and conditions before signing on the dotted line. Once the grant is accepted, the conditions remain, and if they're not met, the grant becomes null and void.


About the Author

Sherry Davis Zander began writing professionally in August of 2006. Previously, she worked for Sprint as a project manager. When it comes to subject matter, Zander writes the gamut. She achieved her Bachelor of Arts in management and human relations in 2004 from MidAmerica Nazarene University.

Photo Credits