The Department of Housing and Urban Development has announced that it will provide $161.5 million in financial assistance to first-time homebuyers by providing grants of up to $10,000 per family.The program money was allocated last year with the passage of the American Dream Downpayment Act. HUD said the grants will be funneled to homebuyers through 400 state and local governments. The cash will go to first-time homebuyers who cannot afford downpayment and closing costs. The new federal program will give homebuyers who earn less than 80% of their community's median income grants worth up to $10,000 or 6% of the home's purchase price. President Bush says he hopes to increase the program to $200 million next year.

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