Homeownership is the American dream that may be realized with a housing grant early in life or in senior years. Setting down roots in your first home and establishing friendships in a neighborhood is also part of the dream.
Whether you are just starting out in life or have been waiting for the right time and are starting the process in your senior years, owning your very own home is a goal worth striving for.
Whatever stage your life is in, you may have misgivings on the stability of your credit rating and thoughts that traditional financing opportunities will not be available to you. The savings plan you have been working may not have accrued the amounts you have heard that are needed for the down payment on a home purchase.
Whatever the reason holding you back from traditional financing qualification, you still may have a way to purchase a home. The U.S. government offers first-time homeowner grants that you may apply for through the Department of Housing and Urban Development (HUD). Your dream of owning a home may still come true.
Learn About Homebuyer Grants
Under HUD, there are multiple programs that may help the first-time buyer with a home purchase, when qualified. Grants from HUD have a list of criteria as traditional financing will however, the list has reduced requirements than the traditional funding.
Less stringent credit scores will apply as will the cash amount needed down for the purchase of a home with HUD acceptance for the grant to purchase a home as a first-time homebuyer.
What kind of help does HUD give first-time homebuyers?
A department within the government umbrella of HUD helping first-time homebuyers is the Federal Housing Administration (FHA). The FHA is a well known and respected arm of HUD providing loan insurance for mortgages to citizens wishing to fill their American dream of homeownership for the first time.
First-time homebuyers are counselled in a classroom setting sponsored through HUD, to help get organized with their personal finances in order to qualify for a mortgage.
Learn About Vouchers for First-Time Homeowners
Failing to qualify for a grant is not the end of the line. There are several government assisted options to home-ownership. The IRS has a tax credit plan providing tax breaks to those who qualify as a first-time homebuyer. Other grants are sponsored through assistance programs at a state level, local level and in the form of additional government optional grants that may help.
HUD has a Homeownership Voucher Program that targets low-income families who have a strong interest in becoming a home-owner for the first time. That same program is available for those who have never owned a home before and have been living in public assisted housing.
The HUD Voucher program helps with a percentage of monthly expenses or mortgage payments for those who qualify and are eligible. HUD outlines the requirements for eligibility through local public housing agencies (PHA). The highlights to eligibility for HUD Vouchers are the following:
- You must be a first-time homebuyer as defined by HUD standards
- Your income requirements are met at least to the minimum level as set locally by your PHA.
- The income being considered is from full-time work for no less than one year in length of time.
- You must have completed the HUD Financial Counseling and homeownership program
Learn About Federal Housing Administration Loans (FHA)
When you are considering making your first home purchase and exploring your options through HUD programs, FHA may be your choice. Obtaining your FHA home loan may be a slower process than a conventional mortgage, but upfront costs are considerably lower.
The fact that upfront costs are lower is crucial for some to be able afford homeownership for the first time. A down payment as low as 3.5 percent of the purchase price of the home in cash up front is necessary to purchase a home.
Doing the math, if you were purchasing a home at 65,000 dollars, then objectively your home down payment would be approximately $2,275. There of course are other fees involved with purchasing a home to consider. Be sure to use an FHA-approved lender. Do not hand money over without doing research on the people you are doing business with.
Learn About HUD’s Good Neighbor Next Door Sales Program
First responders and teachers P-K through the 12th grade often have HUD’s Good Neighbor Next Door Program options for purchasing their home. This is a community revitalization program that requires a deep discount off the listing price of the house with the commitment of the purchaser to live on the property themselves for a minimum of 36 months as their sole residence.
Eligible listings are usually located in areas considered “revitalization neighborhoods.” The Good Neighbor Next Door provides properties through their sales division. Usually, the properties are only on sale through for a very limited time of up to 7 days. There are multiple details and regulations to the Good Neighbor Next Door Program including a lottery if a home has multiple offers on it.
Learn About Veteran’s Mortgage and Loans Programs
U.S. veterans who have served this country may be eligible for multiple helpful homeownership financial programs. Home loans, assistance with lower interest rates, refinancing their homes, grants etc. exist.
The federal government understands how important it is for a veteran to have roots and offers many programs for first-time home buyers as well to get into the home of their dreams. Low-income and disabled first-time veterans will find that VA home loans apply to them as well.
SAH grants will help veterans with specific service-connected disabilities find independent lifestyles in barrier-free homes. Homes are adapted to accommodate his or her specific disability due to service.
Service animals are factored into the consideration for VA homes for veterans with special needs. Limited funds and openings for this program are open. It is best to apply for assistance as soon as possible.