Are financial issues holding you back from buying your dream home? Don’t worry—we’ve got you covered! Thanks to various grants available for first-time home buyers, purchasing a home is now easier than ever.
Grants for buying a home are financial incentives offered by different institutions to help you secure the funds you need. The best part? Grants are essentially free money that you don’t have to repay.
If you want to take advantage of these opportunities and make your home-buying journey smooth and hassle-free, this blog provides you with all the necessary information to help you navigate the process with ease.
Must-Know Grants for First-Time Homebuyers to Secure Your Dream Home
Know about the various government grants to buy houses available for first-time home buyers. Also, get informed about the eligibility criteria to avail of those grants.
The money to buy a house is the most essential thing one needs. Mentioned below are some of the first-time home buyer grants:
- National Homebuyers Fund
Nonprofit grants such as the National Homebuyers Fund offer down payment as well as closing cost grants. However, you have to locate a mortgage company that implements the program and then forgives the funding. You can call the organisation, and you can learn about lenders in your area.
- Bank of America Grant Programs
Bank of America offers two grants to buy a home. These two programs are namely the America’s Home Grant and the Down Payment Grant. Lender credits for closing costs are offered under America’s Home Grant up to $75,000. Moreover, the Down Payment Grant offers up to $10,000 for down payment assistance. However, you will have to get your mortgage from Bank of America but the Down Payment Grant could be counted as taxable income.
- Chase Homebuyer Grant
Chase Homebuyer Grant is for homebuyers in certain parts of the U. S. with specific census tracts. The program offers grants of up to $75,000 which can, by and large, be used to reduce your interest rate. However, you can also use the money for fare charges relating to mortgage fees or other down payment expenses. Like the DreaMaker loan from the bank, the Homebuyer Grant is made available to applicants interested in conventional, FHA, or VA mortgage programs.
- Wells Fargo Grant Program
Wells Fargo offers two types of assistance grants for buying a home. They are facilitating down payment assistance by existing in the Homebuyer Access grant and the Dream. Plan. Home. credit for closing costs. The former offers up to $10,000 to suitable customers in the metropolitan regions of Atlanta, Baltimore, Charlotte, Dallas, Minneapolis-St. Paul, New York, Philadelphia, and Washington, D. C.
The grants are typically availed by banks and other lenders. You would need to source your mortgage from Wells Fargo and meet the income and location requirements.
- HomeReady and Home Possible Credits
These special credit features have offered a one-stop solution for several buyers in the market. If you are going for any HomeReady or Home Possible conventional mortgage before February 2025, you shall also be eligible for a $2500 credit if your income is very low. This means 50% or below the median income of your area. To pay for the closing costs, or for any down payment required on a property that you are purchasing.
- State and Local First-Time Home Buyer Grants
Most of the states and cities are known to come up with grant programs for the intending home buyers. A local mortgage lender could also direct you to the free money. For instance, First Federal Bank of Kansas City provides customers with a grant of 5000 dollars. These are people who are eligible to purchase a first-home grant. ESL Federal Credit Union, located in New York, for Black and Latino first-time homebuyers has grant money of up to $10,500. Tri Counties Bank in California offers matching 4:1 grants.
- HomePath Ready Buyer Program
The HomePath Ready Buyer program is another grant offered to first-time home buyers. Under this program, you stand to receive up to 3% of the purchase price of the house towards closing costs or any other costs and probably more. However, you are restricted to the kind of property to purchase — it has to be HomePath property. These are most often foreclosures that could require a lot of repair work or those that have fallen in value.
How to Get the First-time Home Buyer Grant?
First-time homeowner grants are not available for everyone. While eligibility requirements vary, most grant programs share a few common elements. These include:
- Income limits
The percentage of low-income residents is defined as 80% or less of the Average Monthly Income. Most of the grant programs are marked for this standard alone. The limits of the income also depend on the number of people in the household.
- Home price limits
Again, these limits differ depending on the state or market of your locality, or housing. Hence for every locality and every grant, the home price limit is different.
- Your contribution
Various requirements are usually attached to first-time homebuyer grants. These include the fact that the client has to bring some cash to the table. Hence, your contribution in this regard matters a lot, too.
- Your residence status
Mortgage grants normally cannot be availed for buying a home for investment purposes or as a secondary house. The house that you wish to buy has to be your primary residence.
- Additional education
Some of the grants have conditions that the applicant has to undergo a homebuyer education course. This has to be done before they are provided with the grant.
Conclusion
The market patterns have shifted the purchasing behavior of consumers and the real estate market. Still, everyone has a dream to own a home. A property owner can, therefore, optimally benefit from the above-mentioned grants. Purchasing a home for the first time is one of the most fulfilling and emotional experiences that one can ever go through. Also, it gives one a feeling of financial stability and pleasure.
To start this process and make it a happy purchase, contact us today to get any kind of help regarding financial grants. With our guidance and support, availing grants to buy a home will become even more easy.
