FHLB Down Payment Assistance Grants
Unlock Free Money with FHLB Down Payment Assistance Homebuyer Grants
If you’re dreaming of buying a home in Maryland, DC, or Virginia but feel stuck saving for that down payment, I’ve got some good news for you. There’s a little-known program that could hand you up to $20,000 to help make it happen. While most grant programs come with many hoops to jump through, this one, offered by the Federal Home Loan Bank of Atlanta, is by far the easiest!
Who’s Behind These Homebuyer Grants?
The cash comes from the Federal Home Loan Bank of Atlanta. As a government-sponsored enterprise, the FHLB is required to allocate a portion of its profits to affordable housing initiatives. For 2025, they have committed to funding $60 million in grant funding to support targeted homebuyers with an income less than 120% of the Area Median Income (AMI). This aims to help buyers who might not qualify for low-income aid but still struggle with rising home prices. It’s a way to bridge the gap and keep home ownership accessible.
FHLB Grant Program Overview
FHLB offers several grant programs, each with a different amount and set of qualifications. The amount you qualify for and how the funds are to be repaid (if at all) are determined by your household income. The programs are divided into two income categories: one with an income below 80% of the Area Median Income (AMI) and the other with an income between 80% and 120% of the AMI. In this article, I will focus on the Baltimore-D.C. Metro region. To view the income limits for your area, please use the FHLB Income Calculator.
FHLB Workforce Housing Plus Program
While most grants are designed for homebuyers with incomes significantly lower than the median, the Workforce Housing Plus Program is offered to homebuyers with incomes between 80% and 120% of the median. This opens the eligibility window substantially!
In the DC Metropolitan Statistical Area (MSA), the income limits for a single person range from $86,640 to $129,960. A family of four would see that income range increase to $123,760 - $185,640.
In the Baltimore MSA, the income range would be $68,500 to $102,750 for a single person and $97,800 to $146,700 for a four-person household.
If your income falls within the appropriate range, you are eligible for the following:
- Grant Amount: 15,000 to be used for down payment, closing costs
- No Repayment, Ever: This isn’t a loan—it’s a grant. You don’t owe a dime back.
- No Strings Attached: You don’t need to be a first-time buyer or stay in the home for years. Use it and move on if life takes you elsewhere.
The Workforce Housing Plus Program is my favorite because it is literally free money to buy a home! You may have been wondering why I highlighted a minimum income range. Well, that’s because FHLB enhances (kind of) the program when your income falls under 80% of AMI.
FHLB Homeowner Set-Aside Program
If your income is below 80% of AMI, there’s a $17,500 grant—but it comes with a catch: you must be a first-time homebuyer, and it requires a five-year retention agreement. That means if you sell the home within the first five years, you will owe a prorated portion of that money back.
FHLB Community Partners Program
Similar to the Set-Aside Program, this grant is available to homebuyers with incomes below 80% AMI. This grant is increased by another $2,500 to $20,000 and is designed to show support for our current or retired community heroes, including teachers, first responders, and veterans. While they eliminate the requirement to be a first-time homebuyer, the $20,000 grant requires a five-year retention agreement.
A Quick Pro Tip
Here’s something I’ve seen trip many people up: the FHLB counts all your income—salary, side hustles, bonuses, overtime, and so on. That’s different from traditional mortgage lending, where we might exclude variable pay. Be upfront with your loan officer (like me!) about every dollar you earn so we can confirm your eligibility. The last thing you want is to get under contract for a home and find out FHLB denied your grant a week before closing!
FHLB Funding Limits
Each year, just ahead of the spring selling season, FHLB releases its program guidelines and funding amounts. I’ve found in years past that the money runs out before the spring selling season is over. While these grants are easy to obtain if you qualify, the funding is limited. Before going under contract, be sure to check with your loan officer to ensure a reservation can be obtained or include a contingency in your offer for FHLB grant funding.
Ready to Get Started?
If you’re thinking, “Could this work for me?” let’s find out. Reach out to my team at Downs Mortgage Group—we’ll walk you through the details, verify your eligibility, and get the process started. After 25 years of helping thousands of people buy homes, I can tell you this: the sooner you start, the sooner you’ll be building wealth.
