Raymond Kerege - 27 Mistakes First-Time Home Buyers Make

CHAPTER 4

FIRST-TIME HOMEBUYER PROGRAMS

According to the Census Bureau, 67% of Americans own their homes. That still leaves a huge number of people who cannot buy their own houses, often because they can’t afford the closing costs or can’t meet the down payment requirements of commercial loans. The U.S. Department of Housing and Urban Development (HUD) provides billions of dollars every year to housing grants, turning the homeownership dream into reality. If you are buying a home for the first time, you can file for a buyer grant. There are national, state, and local programs and grants available to first-time homebuyers. These programs and subsidies can help cover portions of acquisition costs, including the down payment, 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 homebuyers can be a significant source of funding, and unlike a loan or a debt, a grant will not have to be repaid. Often these programs are focused on areas where the government wants to encourage 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 homebuyers and the community. Most grants help contend with down payments or the costs of closing, but there are also programs that provide funds for other purposes in the process of buying a house. Many of these programs offer loans that do not have to be repaid, a very helpful thing for a first-time homebuyer, or one who has all the elements of a successful homebuyer but needs down payment assistance.