It is no doubt that living in a rental home is a kind of wasting money. On the other hand, buying a home is not a practical wish for many people, in case they don't have enough money to pay the down payment or close a home loan. The financial institutes and/or banks have imposed stringent guidelines for the qualification of a good mortgage loan. In all such situations, you can make use of government grants available for the first time home buyers. A major advantage of government grants for first time home buyers is a minimum to no interest rate and lower monthly payments. The payment offered by the grants and the programs may differ from one state to another. Let's discuss in brief about the first time home buyer grants.
First Time Home Buyer Grants
Every year, the federal, state and local government give grants for people who have never own a home before or who don't own a home within the last three years. Don't give up if you don't get any federal grants as there are several state grants and other low-interest programs. You can contact the local or state government agencies about the available grants that you can apply. Doing so will help in getting the perfect grant program that meets your financial requirements.
The federal grants are available through the Department of Housing and Urban Development (HUD) programs. Such grants are often provided as financial assistance to people with low income, who are not qualified for mortgage loan. The money obtained from these federal grants can be used to pay the down payment or close a home loan. There are also certain offers such as free money, in which there is no interest charges and monthly payment. Over here, the home that you purchased is regarded as a second mortgage until the payments are being made.
Getting Government Grants for First Time Home Buyers
As a prospective first time home buyer, you can do research and collect information about the resources where you can apply in order to avail the government grants for the first time home buyers. You can contact the state agencies and/or HUD to inquire for the grants that you will be eligible for application. In most of the cases, there are certain forms for the first time home buyers that are to be filled up for getting the grants.
In the application form, you are required to enter the income, expenses and other information. Based on your current financial status, you will be notified whether you are selected for the grant money or not. It is to be noted that you can fill many grant applications at a time. In addition to this grant for the first time home buyer, there are down payment assistance, first time home buyer loans, and mortgage loans programs, which aim in assisting a prospective home buyer to achieve his/her dream.
If you are above 18 years old and an American citizen, you are qualified to avail government grants depending upon the terms and conditions. In case, you don't have sufficient information about various government grants, you can always contact a real estate agent or mortgage broker, who will assist you in getting a good deal.