Getting a home is tough to do these days – it’s a challenge for younger couples who are thinking about buying their first home. In theses uncertain economic times, however, there is a golden opportunity for home buying. The house prices are the lowest they’ve been for years – it truly is a buyers market. Unfortunately, banks and lenders are stricter than they’ve ever been. It’s a huge challenge to qualify for a mortgage these days. However, there is some good news. The government and private agencies are trying to help through government grants for first time home buyers.
A government grant for first time home buyers make it possible for people to get their first home quicker than they would otherwise be able to. In addition, there is no need to worry about paying back a loan. A grant is free money – non repayable.
These types of government grant programs are available through local government agencies; however, there may be federal grants available to you as well. It’s a simple process to apply – you just need to send in a quick application to see if you meet the initial qualifications to receive the grant. The two basic perquisites for this type of grant is that you are at least 18 years of age and an American citizen.
If you are not a first time home buyer, there are plenty of mortgage grants that you can find. For example, there are financial aid programs that may give you the money to improve or repair your home, upgrade your home’s electrical appliances to more energy efficient ones, or generally make improvements in some way to your house. There are even tax credits for people who buy a new home.
Now, one thing to keep in mind is that when you start to apply for government grant funding, you will notice that there are many types of grants – both government and private ones. Just because you happen to be applying for first time home buyer grants does not mean you can’t apply for additional grant funding. There is no limit to the amount of grant funding you can apply for and receive – so it’s in your interest to make as many applications as possible.
Now, get a goverment grant for first time home buyers, you are going to have to first meet criteria. The government is not going to give you a large chunk of money right up front – you are going to actually have to qualify first. You will need to get preapproval from a bank for a mortgage. This means you are going to have to have good credit. If you want to put a down payment on a house, many banks will not let you use grant money for the deposit. If you do have some grant money that you want to use as a deposit, you will have to look around to find the banks that allow this.
So how do you get a government grant to help buy a house? If you are a first time homebuyer, you will have to consult with a mortgage broker and go through the regular preapproval process. The mortgage broker will help you complete your home buying application for preapproval. If you receive preapproval, the mortgage broker will help arrange a meeting with someone who can give you the grant.
If you are buying a first time home, banks will always require you to have extra money to pay other costs – such as the attorney fees for buying the house and other expenses involved with the deal. You will need approximately 1.5% of the total value of your home for closing costs – so make sure you have extra money.
Keep in mind that government grants for first time home buyers are non-repayable. However, there are some stipulations. If you live in the home for 20 years, you don’t have to pay the loan back. But if you sell the home before that, you will have to repay the grant.
Now, for most people, living in the same home for twenty years won’t happen – but the grant can help get you a home you could otherwise never afford. However, there is no interest on the grant. This means if you have the house for say 4 years before selling it and the equity has gone up 10%, you will be able to keep that equity.
A government grant for first time home buyers is a fantastic opportunity for those who want to buy a home but lack enough money for the initial deposit. The average house increases in value about 5% a year, so a first time home buyer grant may allow you to buy a house now instead of a year later. You can then reap the 5% increase.
You should spend time online research government grants for first time home buyers – check out any grant offer you see and do your homework.
