and allow buyers to get a higher percentage of loans to finance.
GRANTS FOR FIRST-TIME HOMEBUYERS
Grants can be just as important as loans when buying your first house. First-time grants for home buyers can be a significant source of funding, and unlike a loan or a debt, a grant won’t have to be repaid. Often, these programs are aligned in areas where the government wants to capitalize on the revitalization of a community. This makes “urban homesteading” a viable and less expensive option for the first-time buyer. These grants are a boon for both home buyers and the community. Different states have different programs and conditions for home-buying grants. The one thing they have in common is that all 50 states have explicit grants for first-time home buyers. Do your research and check what grants are available in the community you’re planning to move to. Most grants help cover the down payments or the costs of closing or perhaps even both. Some programs also provide funds for other purposes in the process of buying a house such as to cover repairs. Many of these programs offer loans that don’t have to be repaid, a very helpful thing for someone who has all the elements of a successful home buyer but needs down payment assistance. Given the lower requirements for a down payment, Federal Housing Administration (FHA) loans are a natural — if not a perfect fit, for the many down payment assistance programs available to help you on your way to buying a home. Most federal grants are targeted to the first-time homebuyer market and are intended to help those individuals get started toward homeownership. These grants shouldn’t be expected to cover a large percentage of the new home’s cost, however. Most cover less than 10% of the
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