CHAPTER 9 Programs and Tax Benefits F ax Benefits For Home Buyers According to the Census Bureau, 65.6% 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 they don’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 home-ownership dream into reality. If you’re buying a home for the first time, you can file for a buyer’s grant. There are national, state, and local programs and grants available to first-time home buyers. These programs and subsidies can help cover portions of acquisition costs including the down payment and allow buyers to get more loans to finance.
PROGRAMS FOR FIRST-TIME HOME BUYERS
Given the lower requirements for the downpayment, 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 towards the first-time home buyer and are intended to help those individuals get started toward home ownership. 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 home’s value or can be expected to help pay for certain expenses, such as closing costs. Downpayment assistance programs are funded at the city, 53
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