available to help you on your way to buying a home. Most federal grants are targeted to the first-time homebuyer and are intended to help those individuals get started toward homeownership. These grants help with down payments or the costs of closing. However, they shouldn’t be expected to cover a large percentage of the new home’s cost. Most cover less than 10% of the home’s value. 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 places: a gift, personal savings, tax returns, and down payment assistance programs. Down payment assistance programs are funded at the city, county, and state levels; due to this funding, the assistance programs are ever-changing. Each program operates on its own budget and operates with its own set of requirements. Credit score, income levels, and other criteria will factor into your eligibility for down payment assistance programs. According to the U.S. Department of Housing and Urban Development, grants won’t be given to anyone who doesn’t qualify for a mortgage. Do your research, and check what grants are available in the community you’re planning to move to. There are steps to follow when applying for a buyer grant. First, find a homebuyer grant that fits you. Then, check the requirements of that grant program. Finally, find an approved lender and fill out all the application forms. There are also programs that provide funds for other purposes in the process of buying a house. 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 homebuyer.
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