What counts as first-time?

Many programs define first-time as no ownership in the past 3 years. Some allow exceptions (e.g., single parents, displaced homemakers). Check the program rules.

Do purchase price caps apply?

Often yes. This tool does not enforce caps. Verify your local/state program limits for price and property type.

Can I stack grants and DPA?

Some programs allow stacking; others don’t. Talk to your lender/housing agency about compatibility and funding availability.

Is credit or homebuyer education required?

Most programs have credit minimums and require a homebuyer education course. This tool does not check those requirements.

Which AMI should I use?

Use HUD/FFIEC AMI for your county/MSA and household size if applicable. Programs may differ—always confirm the AMI table they use.

Do assets affect eligibility?

Some programs have asset caps. This tool ignores assets—check program rules if you have significant savings/investments.

Can I keep the grant if I sell quickly?

Many grants require owner-occupancy and may have recapture/clawback periods. This tool does not check those; verify rules before relying on the grant.

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First-Time Homebuyer Grant Eligibility

Quickly gauge potential grant eligibility based on income vs AMI and first-time status.

Results

Income as % of AMI: 8181.82%
Estimated grant amount: $7,500
Eligibility status: eligible
Income tier: moderate-income

How to use this calculator

Enter your household income and the AMI for your county/metro (check HUD/FFIEC data or lender resources).
Enter your target purchase price (for context) and whether you are a first-time buyer.
Review your AMI percentage, eligibility status, and a rough grant amount by tier.
If ineligible, test lower income scenarios (e.g., using one borrower) to see if AMI tier changes eligibility.

Inputs explained

Household income: Total gross household income to be considered by the program.
Area median income (AMI): Local AMI; find via HUD/FFIEC/LMI maps or lender resources for your county/MSA.
Target purchase price: Used for context; some programs cap purchase price—check program rules.
First-time buyer: Many programs require you haven’t owned in the past 3 years; select accordingly.
Income calculation: Programs vary (household vs borrower, adjusted vs gross). This tool assumes household gross for simplicity.

How it works

Income tier = household income ÷ AMI (as a percent).

Typical patterns: ≤80% AMI often qualifies for the largest grants; 80–120% AMI may qualify for smaller/local grants; >150% AMI often ineligible.

We return a rough grant amount by tier (e.g., $15k low-income, $7.5k moderate, $3k higher). Actual programs vary widely.

Formula

AMI percent = (household income ÷ area median income) × 100. Grant amount is a tiered heuristic by AMI band if first-time status = yes; otherwise ineligible.

When to use it

Screening whether to pursue down-payment assistance or grants before applying.
Comparing income scenarios (single vs joint application) against AMI tiers.
Checking if a raise/bonus might push you above a common AMI cutoff.
Preparing documents for lenders/DPAs by knowing your likely tier.
Evaluating whether changing location (county/MSA) with a higher AMI improves eligibility.
Planning timing of income events (bonuses, overtime) to remain under a tier during application.
Estimating how much a part-time income reduction could shift you into a more favorable AMI tier.
Assessing if stacking multiple smaller grants is feasible given your AMI and first-time status.

Tips & cautions

Confirm the program’s definition of first-time buyer (often no ownership in last 3 years).
Some programs cap assets, purchase price, or require homebuyer education—this tool does not check those.
Income calculations can vary (household vs borrower, adjusted vs gross); verify the method for your program.
AMI updates annually; use the latest figures for your county/MSA.
Keep proof of first-time status (no property deeds/ownership in last 3 years) ready for lenders/DPAs.
Some grants require pairing with specific loan products; coordinate with your lender early.
If funding is limited or first-come-first-served, apply early in the cycle.
If you are close to an AMI threshold, check whether excluding a co-borrower’s income is allowed and still meets underwriting for the loan.
Verify whether the program requires owner-occupancy for a minimum period to avoid clawbacks.
Simplified AMI tiers only; does not verify credit, assets, property type, occupancy, or program funding.
Grant amounts are rough ballparks; actual offers depend on state/local programs and lender overlays.
Does not include layered incentives (state + local + lender) or loan-specific limits.
Does not check citizenship/immigration, residency length, or homebuyer education completion requirements.
Does not validate income calculation method (household vs borrower, adjusted vs gross); check program specifics.
Does not enforce debt-to-income or underwriting rules that might change if applying with one borrower.
Does not check recapture or forgiveness timelines that may apply if you sell or refinance early.

Worked examples

Low-income tier

Income: $70,000. AMI: $100,000 → AMI% = 70%. First-time: yes.
Tier: low-income (≤80% AMI). Estimated grant: ~$15,000. Status: eligible.

Moderate-income tier

Income: $105,000. AMI: $110,000 → AMI% ≈ 95%. First-time: yes.
Tier: moderate (80–120% AMI). Estimated grant: ~$7,500. Status: eligible.

Higher-income but first-time

Income: $150,000. AMI: $120,000 → AMI% = 125%. First-time: yes.
Tier: higher-income (120–150% AMI). Estimated grant: ~$3,000. Status: eligible in this simplified model; many programs may not fund at this level.

Ineligible due to income and status

Income: $190,000. AMI: $110,000 → AMI% ≈ 173%. First-time: no.
Tier: above 150% AMI and not first-time → ineligible in this model.

Single vs joint application

Joint income: $140,000. AMI: $120,000 → 117% AMI (moderate tier).
Single borrower income: $95,000 → 79% AMI (low-income tier).
If program allows, applying with one borrower could access larger grants; check underwriting impacts before choosing.

Location change

Income: $100,000. County A AMI: $90,000 → 111% AMI (moderate). County B AMI: $110,000 → 91% AMI (low-income).
Moving or buying in County B could unlock higher grant amounts due to higher AMI.

Timing bonus income

Income without bonus: $85,000. AMI: $100,000 → 85% AMI (moderate/low border).
If a $10,000 bonus hits before application, AMI% = 95% (moderate tier with smaller grant).
Consider timing the application before the bonus posts or using one-borrower strategy if allowed.

Deep dive

Use this first-time homebuyer grant calculator to see your income as a percent of AMI and a rough grant amount by tier.

Enter household income, AMI, purchase price, and first-time status to gauge eligibility for common grant patterns.

Test single vs joint application income to see if staying under an AMI threshold improves grant size.

Remember program rules vary—verify purchase price caps, credit, assets, and education requirements locally.

Re-run annually as AMI updates and funding cycles change your potential eligibility.

If your income is near a threshold, consider timing bonuses or overtime to avoid moving into a higher tier during application.

Check multiple counties/metros if you’re flexible—higher AMIs can improve eligibility and grant size.

If your program offers limited funding windows, apply early and keep backup options (state/local/lender DPA) in case funds run out.

Use this as a directional screen; a housing counselor or lender can confirm exact eligibility with current AMI tables and program rules.

Confirm repayment/forgiveness terms—some grants convert to silent seconds forgiven over time; others may require repayment if you move or refinance early.

Layer this with down payment assistance and closing cost help where allowed; verify stacking rules to avoid losing benefits.

FAQs

What counts as first-time?: Many programs define first-time as no ownership in the past 3 years. Some allow exceptions (e.g., single parents, displaced homemakers). Check the program rules.
Do purchase price caps apply?: Often yes. This tool does not enforce caps. Verify your local/state program limits for price and property type.
Can I stack grants and DPA?: Some programs allow stacking; others don’t. Talk to your lender/housing agency about compatibility and funding availability.
Is credit or homebuyer education required?: Most programs have credit minimums and require a homebuyer education course. This tool does not check those requirements.
Which AMI should I use?: Use HUD/FFIEC AMI for your county/MSA and household size if applicable. Programs may differ—always confirm the AMI table they use.
Do assets affect eligibility?: Some programs have asset caps. This tool ignores assets—check program rules if you have significant savings/investments.
Can I keep the grant if I sell quickly?: Many grants require owner-occupancy and may have recapture/clawback periods. This tool does not check those; verify rules before relying on the grant.

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Simplified AMI-based estimate only. Does not verify credit, assets, property caps, occupancy, funding availability, forgiveness/recapture terms, or program-specific rules. Confirm eligibility with your lender or housing agency using current AMI data and program guidelines.