First Time Home Buyer Grants – What Are the Requirements to Obtain First Time Home Buyer Grant Money
When you are looking to buy your first home, many times wondering where you will obtain money for a down payment and closing costs is of great concern.
Before taking the plunge and becoming a homeowner, investigate the options in your local area to see if you can receive assistance with buying your first home. Many communities, counties and states in the US offer grants that can be used for a down payment and/or closing costs. The programs available to home buyers vary by state and usually specify that certain requirements be met before that buyer is approved for the program.
The first time home buyer programs usually include offering qualified applicants a “grant” (i.e., a certain amount of gift funds) that can be used for a down payment and/or closing costs. Some programs also offer qualified buyers a home loan or mortgage with a discounted interest rate.
Some first time home buyer grant program requirement examples are:
- Income Requirements – Many state grant programs specify that the buyers have a minimum income and/or a maximum income in order to qualify for the first time home buyer program.
- Targeted Areas – Many states offer special discounted interest rates and grant money to purchase a home in certain communities within the state. Sometimes these programs are available to non-first time home buyers to encourage home ownership in these communities.
- Cash Available – Some state programs indicate that the buyer must have a certain minimum of cash (“liquid assets”) available before the buyer is approved for the program. The reason for this is that they don’t want the buyer to have absolutely no cash available in case of hardship or for unplanned home repairs.
- Home Buyer Education – Some state programs require that applicants of their first time home buyer program attend a home ownership/home buying “seminar” to be certain the buyer is ready for the transition from being a renter to a home owner. Often times, these courses are available free of charge.
Be sure to review the programs available in your state or community before buying your first home. If there are money and resources available to you, take full advantage of them!
©Copyright – 2007. This article may only be distributed with permission from the author and links provided below.
The author is the publisher of http://www.buying-your-first-home.com. This website is a resource for all first time home buyers providing information on credit, fico scores, down payment money, obtaining government grants and much more. Information regarding first time home buyer state programs is available at http://www.buying-your-first-home.com/first-time-home-buyer-grants.html.
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