Mortgage Resource Center

Empowerment through Education
Mar 8, 2018
First-Time Home Buyer Grants and Programs

Purchasing your first home can be an exciting but stressful time, especially when every dollar counts.

In most instances, the fear of prospective homeowners involves what they don't know regarding the financing and purchasing process.

Even if you think there may be programs designed to assist you, finding and navigating them can feel like an exercise in futility.

It may be easy for someone to tell you to find a grant for first-time home buyers, but the reality is often far more challenging.

Between the complicated legal-speak and the never-ending fine print, most people abandon the search for assistance out of pure frustration.

Help is Available - You Just Need to Ask for It

But don't despair. Help is available for a surprisingly high number of first-time home buyers; the key is finding a trusted source to guide you through the process.

By contacting a Home Loan Expert, you will not only get the much-needed assistance you need but also peace of mind knowing you are not leaving any available money on the table.

Although many programs appear targeted towards first-time home buyers, there are also options available for current homeowners looking to save money.

Programs exist for existing homeowners to refinance by lowering their mortgage rate, cashing out to consolidate debt or even reducing their term to pay less in interest.

Again, the key has a Home Loan Expert in your corner.

First-time home buyer grants work in concert with low-down-payment mortgages.

For example, Federal Housing Authority (FHA) mortgages usually require a 3.5% down payment to qualify.

Other conventional mortgage programs allow you to buy a home for even less -  only 3% of the purchase price as a down payment.

Grants Can Solve Down Payment Problems

This down payment requirement is where first-time homeowner grants come into play.

These grants are specifically designed to cover the down payment requirement; as a result, the combination of the down payment assistance grant plus the mortgage allows you to purchase a new home with no down payment whatsoever.

There are some restrictions; for example, although advertised as programs first-time homebuyers, the definition may include anyone who has not owned a home within the past three years.

Additionally, the grants are designated for owner-occupied houses only, so you are prohibited from using them to purchase a second home or investment property.

Individual states administer most grant programs, and these grants have their specific limits.

By way of example, a grant will likely be capped at a specific dollar amount.

If the limit is $6,000 for example, the maximum purchase price of a property using a 97% first mortgage, would be $200,000 ($200,000 x .03 = $6,000).

Another restricting to be aware of with grants are income limits, which often vary based on the median household income in the area.

Meeting the income limits is an essential first step in the grant process, which is the kind of inside information a Home Loan Expert can provide you with to save you time and aggravation.

Many grant programs also require you to complete a course designed for prospective homeowners.

This course, which is often available online, is intended to make sure grant recipients understand their rights and obligations before going through with the process.

Conclusion

The process of buying a home is complex, but it doesn't have to be that way.

By contacting a Home Loan Expert, you can take advantage of a support system you didn't even know you had at your disposal.

With a team of professionals on your side, you can be sure to make informed decisions to help not only save you money but give you peace of mind.

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