state, and local programs and grants available to fir st-time home buyers and other buyers. Th ese programs and subsidies can help cover portions of acquisition costs, including the down payment, and allow buyers to get a higher percentage of loans t o fin ance. GRANTS FOR FIRST-TIME HOME BUYERS First-time grants for home buyers can be a sign ifi cant source of funding; unlike a loan or a debt, a grant won’t have to be repaid. Most grants help to connect with down payments and/or closing costs, though some programs provide funds for other purposes in the home-buying process. Th is can be very helpful for those who require down payment assistance, or have everything in order except the funds to cover closing costs. Most federal grants are targeted to the fir st-time home buyer, and are intended to help those individuals get started toward homeownership; however, there are still grants and programs available for other types of buyers, as well as state-based programs available. Keep in mind that while these grants and programs are great options and can lower the costs associated with buying a home, don’t expect them to cover a sign ifi cant portion of home- purchase-related costs. Most cover less than 10% of the home’s value, or can be expected to only help pay for certain expenses, such as closing costs. For example, a down payment with an FHA loan is 3.5% of the cost of the home. Current FHA loan guidelines allow for the down payment portion of your home loan to come from several diff erent places — a g ift , personal savings, tax returns, and down payment assistance programs. LIST OF PROGRAMS FOR ALL BUYERS
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