homeownership by assisting them in the process of getting their finances in order. By doing so, these individuals stand a greater chance of qualifying for a mortgage. For example, simple courses in home economics or household budgeting are important to the financial success of the individual, and achieving the grant program’s goals. Different states have different programs and conditions for home buying grants. The one thing they have in common is that all fifty states have explicit grants for first-time homebuyers. Check what grants are available in the community you are 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 correctly. The HUD website is a great resource for buying a home, whether it’s your first or your tenth. (For specific HUD programs, you can go to portal.hud.gov and access their Resources section or search for a specific kind of program with the Search bar.)
PENALTY-FREE IRA FOR FIRST-TIMERS -TIMERS
First-time homebuyers are eligible to take $10,000 during their lifetime out of their Individual Retirement Accounts (IRAs) without paying the 10% penalty for early withdrawal. If yours is a traditional IRA, you will have to pay income tax on the money withdrawn. Roth IRA accounts are not subject to additional taxes as they are funded with money that has been taxed. Since the $10,000 lifetime amount earmarked for penalty-free withdrawal is for each individual, a couple could collectively withdraw $20,000 to pay for their first home. The money must be used within 120 days, though, or it becomes subject to the normal 10% penalty.
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