First Home Buyers Grant
When deciding to purchase a home, many people look at their budget and decide how much they can afford to spend on a home. However, many people forget that they also have to take into consideration the amount of money needed for the down payment and to cover the closing cost on the home. Did you know that many states have programs that help the first time home buyer with the needed money for the down payment and closing costs? This assistance has been established through grants to help in the financing of someone’s first home. In order to see if your state has grants available, do an internet search for your state’s name followed by “first time home buyer grant” (i.e. Florida First Time Home Buyer Grant).
In addition to the state programs, the federal government has established funds and grants which are available to first time home buyers. This federal program is run by the United States Department of Housing and Urban Development (HUD). Their website offers complete grant information, application forms, descriptions of the various available funds, as well as other helpful tools. You can also visit www.Grants.gov to look at a complete list of all the grant programs that the federal government has established. If you are a first time home buyer, you should plan on taking the time to do the appropriate research because you may qualify for more than one grant.
One thing to keep in mind is that, as defined by HUD, first time home buyers are individual(s) who have not owned a home within the last three years. If you meet that requirement, you may qualify for a grant on a new or existing home. Often, even individual(s) with bad credit are not stopped from qualifying for a grant. If you are able to get a low interest rate loan from FHA, then typically your chances are significantly improved for qualifying by the grant agency.
In addition, the first time home buying grants and down payment assistance programs usually have limiting mortgage loan qualifying guidelines such as: maximum income limits, minimum credit history and credit score, and available funds requirements. Each state is different though in its requirements as are the grants available through the federal government. You will need to take the time to research and see what would be required of you based upon where you plan to purchase a home.