Just over 32 percent of home buyers in the US are first-time homeowners. When wages don’t keep up with rising prices, it becomes more challenging to get into the market.
Are you a first-time or repeat home buyer interested in grants for buying a home? Here’s some information about the types of assistance available and what they might cover.
Down Payment Assistance
There are many grant programs for homes in the US today. Classified as down payment assistance programs (DPA), they usually cover all or part of the down payment on your home purchase. You might get one if they are available in your area and you meet their qualifications.
State agencies and a variety of nonprofits offer DPA grants or programs. These programs lower the amount you have to save for a down payment. They target buyers who wouldn’t otherwise be able to get into the housing market, so there may be a maximum income to qualify.
Candidates for the grants usually need a minimum credit score to qualify. Each program is slightly different, so you’ll need to read the fine print to see if you meet their requirements. There may be a limit to the amount of money in the program.
You might need to wait for these funds to be refreshed. Some programs only offer loans that will need repayment at some time in the future. You might need to take some homeownership courses or counseling to meet their qualifications.
Some programs target the support toward first-time buyers, so you wouldn’t be able to use them if you’ve owned a home in the past. Usually, you need to live in the home you are buying.
First-Time Home Buyers
There are quite a few home grants available in some states. Often these first-time home buyer grants cover the closing costs as well as your down payment.
The eligibility process for first-time buyer programs is usually quite specific, and you may need to repay some or all of the amount they provide. You may qualify for access to lower interest rates, which will reduce your monthly payments.
Good Neighbor Grants
The federal government offers a fantastic program for specific groups of buyers interested in buying under the HUD program. These are grant programs for homes in developing neighborhoods, listed by the U.S. Department of Housing and Urban Development.
If you work in one of the following positions, you may qualify for 50 percent off your home’s list price.
- Law enforcement officers
- Emergency medical technicians
- Teachers working pre-kindergarten through 12th grade
You have to commit to living in the home for three years, but it’s an excellent opportunity to get into the housing market.
Research Available Grants For Buying a Home
It’s exciting when you know there are many grants for buying a home in the US. You can do your research to discover ones in your local area. It’s surprising how a little bit of information can change your opportunity to buy a home.
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