Buying a home for the first time is a big deal. As exciting as it is, there are many financial responsibilities that come into play. Between the down payment, closing costs, and move-in fees many people find themselves struggling to finalize their purchase. Fortunately, there are options and financial resources to help fund this first time home. The most significant source to apply for is called the First Time Home Buyers Grant. Here are resources categorized by state: https://www.businessinsider.com/personal-finance/first-time-homebuyer-programs-by-state.
Who Is Eligible?
In order to be eligible for this grant, applicants must be purchasing a home for the first time. There are some exceptions. An individual can also be considered a first time home buyer if they:
- Have not owned a home in 3+ years
- The past home they owned was a mobile home (not a permanent entity)
- Owned a house with a significant other and now are a single divorced parent
What Do Homeowner Grants Cover?
Depending on the state and program, individuals will receive differing amounts in grants. The funds come from state agencies and nonprofit organizations. Most grants cover the down payment. Others may cover the closing fee as well as housing repairs. This money can only be used towards the first house. It cannot be used for secondary homes or rental properties.
How to Qualify?
In order to apply for the First Time Home Buyers Grant individuals must meet certain criteria. The requirements vary based on location and program. Another qualification depending on the program is taking a first-time homebuyer class. This course aims to help buyers qualify for mortgages and go into the home buying process with confidence. This course helps prospects show initiative to help them receive a grant.
Other Funding Options
Grants are a great opportunity to help individuals attain a home. Unfortunately, not everyone gets approved for this grant. Other financing tactics include loans. There are many different types that can help achieve financing the home. To see a list of programs and loan options by state click here. When figuring out how to finance the new home it’s important to calculate what is personally affordable. Use this calculator to understand what options are attainable.
Buying a home for the first time can be a hassle-free process. Through a variety of programs, there are resources for individuals to gain financial assistance and other knowledge so they can purchase their dream house with ease.