The Top Government Grants For First Time Home Buyers
Do you have your eye on top government grants for first time home buyers but are unsure of the details? Well keep reading and we will bring you up to speed.
Buying a home can seem like an impossible dream these days. Real estate is more expensive than ever, and it’s hard for people to save up the 20 percent necessary for a down payment.
The good news is that you don’t necessarily have to take out a huge loan to purchase a home. Depending on your situation, you might qualify for one or two government grants for first time home buyers.
Before you sign on the dotted line, do your research to find out if you qualify for extra assistance. We’ve rounded up some of the top programs for you here.
Read on to find out more about the top seven first time homeowner government grants.
USDA loan offers can be very helpful programs for first time home buyers looking to buy. But did you know that they also have grants for home purchase available to potential buyers?
These housing programs are meant to assist people who want to live in rural areas of America. So if city living is more your style this program is not for you. However, you don’t have to live on a farm, though.
Assistance is income-based for these new homeowner grants. They’ll use the median income of the area where you’re looking to buy to figure out if you’re eligible for help. Once you’ve purchased a house, you can apply for a grant of up to $7500 for necessary repairs.
Whether you’re buying or building, you can take advantage of this program.
Watch This Short Video About USDA Down Payment Assistance
2. First Home Club
Buying a house in New York? Then you might want to look into the First Home Club, which awards up to $7500 in assistance.
Quontic Bank in partnership with the Federal Home Loan Bank of New York runs the program. In fact, if you have some money saved for a down payment already and find yourself just a bit short, this program will help match your funds.
You’ll have to plan ahead to access this program since it’s necessary to open a savings account with the bank to receive the matched dollars.
For every dollar you deposit, they pledge four. The money can also be used for closing costs if needed.
It’s worth noting that this program means you can only have your mortgage funded by Quontic.
3. Local Programs
Similar to the First Home Club, it’s always a good idea to research local programs. Your state or city might have government grants for first time home buyers available.
Most of these programs will take your income into account. They are location specific. These government grants to buy a home usually exist because they want you to purchase in that area, so make sure you read closely.
It’s also a good idea to read the fine print. There are some programs that will require you to pay back the grant if you move out of the home too early.
4. Good Neighbor Next Door
This program from HUD is for homebuyers looking to buy a home in a revitalized area. Since its goal is to help rebuild certain places, you can take advantage of it even if this isn’t your first time buying a home.
However, there is an occupational requirement here.
The Good Neighbor Next Door program is only available to people who work as law enforcement officers, firefighters, EMTs, or teachers. If this describes you, that’s good news — you could qualify for a 50 percent discount on the price of your home.
The program is available in multiple states, and you can easily search for participating areas on their website.
5. Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac might sound like nicknames, but they’re actually the names of government-sponsored programs. Their Conventional 97 loan program helps first-time homeowners buy a house without having to put down a lot of money for a down payment.
If you qualify for this program, you could put down as little as three percent of the total cost of your future home. It’s meant to help increase the number of mortgages that are being offered in the US by making them easier to afford.
While this is technically a loan, the down payment is allowed to be a gift from a friend or family member.
6. National Homebuyers Fund
The NHF offers government grants for first time home buyers in multiple states, like some of the other programs on this list. Their Down Payment Assistance programs don’t have to be repaid.
They’ll give you up to five percent of the loan amount, which you can put towards either your down payment or your closing costs. You’ll have to find your own lender, but this could help significantly reduce the amount of debt you’d go into by buying a house.
There is an income requirement, but it varies based on where you want to buy a home.
7. VA Assistance
Finally, there are of course programs available to assist veterans in purchasing homes. The U.S. Department of Veterans’ Affairs will help you buy a home if you’re active duty, a vet, or a military spouse.
Most people are familiar with the VA loan that helps you buy a house without a down payment. This is incredibly helpful, but it’s still technically a loan.
Disabled veterans can apply for an Adapted Housing Grant. This program provides assistance for buying a home completely suited for their disability.
Watch This Short Video That Explains The VA Adapted Housing Grants Program
Members of the military should always check to see if the VA offers some sort of assistance for their mortgage situation.
Learn More about Government Grants for First Time Home Buyers
Getting the finances to buy a home is difficult. With these seven federal programs for first time home buyers, you can find yourself one step closer to being a homeowner.
Whether you’re renting or about to close on your first home, it’s always important to know your options. Learn about government grants for home buyers, refinancing a mortgage, improving your credit and more on our website.
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