Do Down Payment Assistance Grants have to be paid back? Most grants are what are referred to as soft 2nds, which means the agency giving you the grant will place a lien on your new home for the amount of the grant, but if you retain the home for a set period of time, the grant is forgiven.  If you sell the home early, or change it to a rental property, some or all of the grant would have to be paid back. The amount being paid back is determined by the length of time you retained the home, and the initial agreement made with the agency. However, some down payment assistant programs will need to be paid back, so it is important to ask the right questions when choosing a grant program.