Many people dream of owning their home, but unfortunately many lower and middle class families have difficulty paying their current rent and bills and saving enough for that down payment and other related costs no matter how hard or how long they work.
However, there are grants available for first time homeowners to help them make that down payment and secure a mortgage so that they can actually own their homes.
What Do First Time Homeowners Grants Do?
First Time Homeowners grants are designed to help people of a certain income level purchase a home by making the down payment for them as well as closing costs, and in some cases paying for repairs or renovations of the home you want to purchase. You then make all of mortgage payments although in some cases the mortgage payments may be reduced and extend over a longer period of time in order to make them more affordable.
Some first time homeowner grants are not just for people who have never owned a home before, some are given to people who simply not owned on a home for at least three years.
Various first time homeowners grants have different requirements, but here are some general requirements that most grants have in order for you to qualify for the grant.
• Financial Need – Almost all first time homeowners grants require that you be below a certain income level. This level may vary depending on the area or state in which you apply for the grant.
• Must Live in Home – First time home buyer grants require that you actually live in the home and not plan to use it as an investment property or second home.
• Must Take a Homeowners Course – Most grants for first time home buyers require that you take a homeowners course in order to receive the grant.
• Must Remain in the Home for a Set Number of Years – A good majority of first time homeowner grants require you to live in the home that you purchase for a set number of years once you have purchased it.
• Need to Find a Lender that Accepts Grants – Not all mortgage lenders will work with grant provides so you may need to a find a lender that will accept the homeowners grant that you have applied for.
• May Need to Repay Some of the Grant – Some grants require that you make small repayment towards the grant however, if you make regular payments for a certain amount of years the rest of the grant is forgiven. Some grants do not require any repayment.
• Must Complete All Paperwork and Follow Any Set Homeowner Rules – In order to get your grant and prevent being required to repay the entire mortgage at once you need to fill out all the necessary paper work and meet the homeowner requirements set forth in the mortgage.
There are first time homeowner grants given by Federal, State and Local Governments as well as some given by other organizations so if you are looking for a grant to purchase a home, make sure you check out all possibilities to find the grant that best meets your needs.