state, and local programs and grants available to first-time home buyers and other buyers. 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 HOME BUYERS
First-time grants for home buyers can be a significant source of funding; unlike a loan or a debt, a grant won’t have to be repaid. Most grants help to connect with down payments and/or closing costs, though some programs provide funds for other purposes in the home-buying process. This can be very helpful for those who require down payment assistance, or have everything in order except the funds to cover closing costs. Most federal grants are targeted to the first-time home buyer, and are intended to help those individuals get started toward homeownership; however, there are still grants and programs available for other types of buyers, as well as state-based programs available. Keep in mind that while these grants and programs are great options and can lower the costs associated with buying a home, don’t expect them to cover a significant portion of home- purchase-related costs. Most cover less than 10% of the home’s value, or can be expected to only help pay for certain expenses, such as closing costs. 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 different places — a gift, personal savings, tax returns, and down payment assistance programs.
LIST OF PROGRAMS FOR ALL BUYERS
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