First Time Home Buyer Grants
- Author: Jessica Williams
- Posted: 2024-02-24
The organizations that help aspiring homeowners achieve their home ownership dreams are; Federal Housing Administration, The U. S Department of Agriculture, The US Department of Veteran Affairs, Fannie Mac or Freddie Mac, Good Neighbor Next Door, Native America Direct Loans, among others.
So Who Is Eligible For These Grants?
A first time home buyer is somebody who has never owned a home before. If you have not owned a home for the last three years, your application will also be considered. If yours is a mobile home that is portable, you are eligible too. To qualify for the grants, the market value of the property should not exceed $575 000.
How To Apply For The First Home Buyer Grant
1. Inquire about the various home-buying programs in your area. Note that different States have different programs. Contact the Department of Housing and Development for clarification on the home-buying programs per state. You can also contact a housing to help you understand whether you qualify as a first-time home buyer and they will also assist in identifying which program will be beneficial to you. Issues concerning down payments and your credit concerns will be discussed at this stage. There are different programs available for different categories of first time home buyers such as buyers with disabilities, single parents and home buyers with limited income.
2. Check the requirements for the program selected. To be considered for an FHA loan, you will need to have a down payment of at least 3-6% of the purchasing price. You will also need an additional 3-4% which will cover the closing cost. For you to achieve this, you need to start saving.
3. Get an approved lender. The local home-buying programs always offer loan grants through approved lenders.A list of approved lenders is available at your local housing agency.
4. Finally, fill in the application forms. You will answer complete a few questions about your personal and financial information such as your income, debts, employment history among others. Keep your credit in check and monitor your score. Ensure that you keep your credit card balance to a minimum. A high credit score will heighten your chances of approval.
Benefits Of These Grants
Here is a look at some of the benefits of first home buyer grants:
Little or no down payment
These programs offer first time home buyers an opportunity to pay very low down payment depending on your income. In some cases, you need not pay any down payment at all.
Lower interest rate
These organizations will help first time home buyers qualify for a loan with very low interest rates. This makes paying for monthly installments much easier.
Offer Grants
They offer free money that goes towards down payment, closing costs and even funds for home improvements after purchase.
Loan Waiver
Loans are waivered for the sole purpose of encouraging home buyers to stay in their home long-term. It involves cancellation of mortgage debts or a portion if it has taken a longer period.
Regulate Loan Charges by Lenders
These organizations help put a limit on how much banks can charge for a closing loan.
The grants available to you may offer these benefits or not. It solely depends on where you live and what is available for you. It is also crucial to note that these loans have restrictions. They put a dollar mark on the kind of property you wish to own. If you are thinking of owning the most expensive house in the hood, then you may not be eligible for these grants. In the long run, you will also be restricted to staying in that home and not rent it out. The house you wish to buy has to meet the health hazard and safety requirements before you purchase it. Despite the drawbacks, these grants offer a perfect opportunity for aspiring homeowners with little income at their disposal.