Buying a home can feel overwhelming, especially when it comes to affording a down payment. Fortunately, the U.S. government offers programs that make homeownership more accessible. These programs provide essential resources and financial assistance to help families and individuals achieve their dream of owning a home. Here is the 2025 guide to applying for HUD housing grants.
What Is HUD Housing?
HUD housing refers to programs and assistance provided by the U.S. Department of Housing and Urban Development to help individuals and families find affordable and safe housing. HUD's mission is to improve housing conditions and increase access to homeownership, particularly for low- and moderate-income households.
Free Government Grants for Housing
HUD does not provide grants directly to individuals. Instead, it provides grants to state and local governments and non-profit organizations. These entities are responsible for administering the funds to create affordable housing opportunities for residents in their jurisdiction. This ensures that the grants are distributed effectively and reach those who need them most.
Additionally, it allows local agencies to tailor their programs to meet the specific needs of their communities. Check with your local housing authorities for detailed information about HUD-funded programs in your area.
Continue reading to learn about the different types of HUD housing grants and how you can apply for these funds through your state or local housing authorities.
How To Apply for HUD Grant Money
Individuals and families can apply to receive HUD grant money for housing through their state government, local government, or a HUD-approved non-profit organization. The HUD Resource Locator tool is an excellent way to find contact information for local housing offices and programs. You can also use the HUD directory to find the website and contact information of your local housing authorities.
Your local housing authorities will be able to provide you with information on application processes, funding availability, and deadlines. This is important because the application procedures and deadlines can vary significantly depending on your location and the specific grant for which you are applying. Being aware of these details can help you prepare a thorough and timely application, increasing your chances of receiving funding.
HUD Grants for First-Time Homebuyers
HUD provides grants to state governments, local governments, and nonprofit organizations to help prospective homebuyers finance the cost of their housing. These grants are specifically designed to make the dream of homeownership accessible to those who might not otherwise have the financial means to purchase a home.
Many first-time homebuyer programs also offer additional benefits such as down payment assistance, low-interest loans, and educational resources on homeownership. Local agencies may also provide housing counseling services to guide you through the homebuying process. Individuals and families who would like to receive HUD housing grants should contact their local housing authorities to learn about state and local first-time homebuyer programs.
Individuals and families can visit the Local Homebuying Programs page of the HUD website to see detailed information on the state and local agencies that administer grants to first-time homebuyers.
HUD Housing Grant Programs
HUD offers a variety of grants to address housing needs and make safe, affordable housing more accessible. Here are some of the HUD housing grant programs currently available in 2025.
Community Development Block Grant (CDBG)
One of the grants that HUD administers to qualifying agencies is the Community Development Block Grant (CDBG). Agencies that receive this grant must use it to improve living conditions in local communities. The flexibility of CDBG funds allows agencies to address a wide range of community needs, which can include infrastructure improvements and economic development projects.
CDBG funds are often used in conjunction with other funding sources to maximize their impact. Examples of programs that state and local agencies fund with this grant include housing rehabilitation and homebuyer assistance. To learn about the specific CDBG-funded housing programs that have been implemented across the country, visit the CDBG information page.
HOME Investment Partnerships Program
The HOME Investment Partnerships Program issues grants to local and state agencies to provide affordable housing. This program is the largest Federal block grant designed exclusively to create affordable housing for low-income households.
State and local projects funded by HOME grants include housing rehabilitation and homebuyer funds to assist with down payments or construction costs. These projects help preserve existing housing and create new opportunities for homeownership. HOME funds can be used to build, buy, or rehabilitate affordable housing for rent or homeownership, or provide direct rental assistance to low-income people.
To learn about HOME-funded programs that have been implemented in your local area, consult the HOME Investment Partnerships Program information page.
Emergency Solutions Grants (ESG)
The Emergency Solutions Grants (ESG) Program helps people find stable housing after experiencing homelessness or a housing crisis. ESG funds support services like emergency shelters, street outreach, homelessness prevention, and rapid rehousing. These programs ensure individuals and families can quickly secure a safe place to live after facing a housing emergency.
To apply for ESG assistance and learn about ESG-funded programs in your local area, visit the ESG information page or contact your local HUD office.
Housing Opportunities for Persons With AIDS (HOPWA)
The Housing Opportunities for Persons With AIDS (HOPWA) Program administers funding to state governments, local governments, and non-profit organizations to help low-income people living with HIV/AIDS and their families maintain stable housing. This program provides housing support and related services to one of the most vulnerable populations.
HOPWA funds can be used for a range of housing, social services, program planning, and development costs. To learn more about HOPWA-funded programs across the country and reach out to your local HOPWA point of contact, visit the HOPWA information page.
Choice Neighborhoods Grant Program
Choice Neighborhoods grants help state and local agencies improve struggling neighborhoods and provide residents with safe, stable housing. The program focuses on turning areas with high poverty into thriving, mixed-income communities.
These housing grants fund projects like housing repairs, homeowner assistance, and broader community improvements, benefiting both the people and the neighborhoods.
To learn more about Choice Neighborhoods-funded programs near you, visit the Choice Neighborhoods information page.
Self-Help Homeownership Opportunity Program (SHOP)
The Self-Help Homeownership Opportunity Program (SHOP) administers grants to national and regional non-profit organizations to provide safe and stable housing for individuals and families in need. Organizations can use SHOP funds to purchase homes and rehabilitate them to make them safe and livable.
Homebuyers must be willing to contribute their own time and labor to the construction or rehabilitation of their home. This sweat equity significantly reduces the cost of homes, making homeownership more affordable.
To learn more about SHOP-funded programs around the country, visit the SHOP information page.
Youth Homelessness Demonstration Program
The Youth Homelessness Demonstration Program provides grants to local communities to reduce and prevent youth homelessness. This initiative supports a wide range of housing interventions, including rapid rehousing, permanent supportive housing, and transitional housing. The program also encourages collaboration between local agencies and service providers to create comprehensive solutions to youth homelessness.
To learn more about YHDP-funded programs across the country and consult housing resources for youths experiencing homelessness, visit the YHDP information page.
Veterans Housing Rehabilitation and Modification Pilot Program
The Veterans Housing Rehabilitation and Modification Pilot Program provides funding to non-profit organizations that help veterans and low-income individuals secure stable, safe, and affordable housing. This program also focuses on making necessary home modifications to accommodate veterans with disabilities, ensuring their homes are accessible and functional. These modifications can include installing ramps, widening doorways, and making bathrooms accessible.
To learn about programs in your local area, visit the Veterans Housing Rehabilitation and Modification Pilot Program information page.
Apply for HUD Housing Grants in 2025
HUD housing grants and programs offer valuable support to families and individuals, providing safe and stable housing while strengthening communities nationwide. To apply for HUD-funded housing assistance, reach out to your state or local housing authorities for details on the application process in your area.
Also, check out HUD Housing Network’s list of HUD housing programs. These resources can help you take practical steps toward making homeownership a reality. Whether you're looking for guidance or financial assistance, these programs are designed to help you find a place to truly call home.
