It is not always easy when you are about to get your first home. This is because it might be need of you to save up for a down payment, apply for a mortgage and then do some paperwork before you can finally move into your new home. This might exhaust all your savings on furniture and appliances also that you will need to buy in order to furnish the house. There is an easier way to get all of this done and they way is by getting a home buyer grant.
What is a home buyer grant?
These grants are government initiatives with the goal of helping more people become homeowners and fewer people default on their mortgages. They can help you with paying a lower down payment and sometimes not even having to pay a down payment at all as well as make it easier for you to qualify for lower interest rates which will make it easier for you to stay up to date on your monthly payments. There are many different types of home buyer grants that you could try to apply for, but today we’re going to look at some of the most popular and/or easiest.
First-time Home Buyers Grants and Programs
Good Neighbor Next Door
If you manage to qualify for this government grant, it is one of the best grants that you can get and use to buy your home. The United States Department of Housing and Urban Development is responsible for running this program. It aims to get productive members of society in good neighborhoods so that they can assist their neighbors if they are ever in need such as during civil unrest or any other disturbance. Emergency services such as paramedics or firefighters as well as law enforcement agents are the likely kind of people that qualify for this grant.
Teachers do not have the skills to neutralize a home invasion, but they provide the education necessary to reduce the number of home invasions annually and for this reason they also qualify for this grant. This means teachers protect and educate the community all at once. It is also possible to get a discount of up to 50% on the listed price for any specific home in some parts of your city known as revitalization areas. If you’ve spent your life serving others and keeping the public safe, you could finally get a return on your investment by getting this grant that will give you your first home. Bear in mind that any termination for improper conduct such as extrajudicial killings or negligence causing death, you’re unlikely to get an approval.
HUD Dollar Home Program
Homes do not retail for an actual dollar in the real sense. This is an example of representing their cheap costs. If a foreclosed home has been on the market for six months or more, the United States Department of Housing and Urban Development offer these homes to low-income families at very cheap prices so that they can get rid of excess inventory while helping people get their first house.
For both the government and the recipient of the new home, it is a win-win case for them. It is also necessary to note that some of these homes may be in undesirable areas seeing as no one has bought them since they were foreclosed half a year ago, but it’s still worth checking the home out. Perhaps the neighborhood is perfectly safe but just far away from all the good shopping malls and Starbucks joints leading to its availability.
The Federal Housing Administration is ensuring that the event of the real estate market collapse that happened in 2008 never repeats itself. They haven’t stopped even though it has been more than 10 years they had the experience. Their basic aim is to turn more people into homeowners and make it easier for people to afford their payments monthly so as to ensure that no collapses happen in the future. It is realistic to get a home loan that has down payment inclusive as low as 3.5% provided you meet the 580 mark with your credit score. This is talking about cheap.
That said, even if your credit score is below that, you aren’t out of luck just yet. The FHA loans accommodate those with lower credit scores. If your credit score is below 580 but at 500 or more, you will still be eligible for an FHA loan. The only issue is that your down payment will be at 10% rather than 3.5%, but that’s still a pretty fair price. It’s recommended that you raise your credit score to 580 or better before getting your FHA loan to qualify for the lower the down payment. All the closing costs are added into the loan meaning you won’t have to cover them yourself upfront —making the process easier, faster, and cheaper for you.
USDA Loans Programs
The United States Department of Agriculture provides home loans as incredible as it sounds. This department is in charge of all things to do with agriculture, the USDA has decided to take some initiative and fill up the rural areas of the country with productive members of society as opposed to letting the urban centers have all the fun and income.
With these loans, low-income families are able to get homes on the cheap provided they are in rural areas. Although it might not be fun living miles from the nearest shopping mall. If you’re willing to make that sacrifice to get your own home, then the USDA housing loans might be the right option for you. You could even try your hand at farming once you get there, which is what the USDA hopes you’ll do after they give you a home for so cheap. You’ll make extra income and always have food on the table.
VA Loans Programs
It could be a great way for you to buy your first home if you are a veteran to get a VA loan. It saddens to know that many veterans do not actually have their own homes because they were too busy serving their country and did not have the advantage of going into business and grow their savings accounts. In the past few decades, the Veterans Affairs Administration has been hard at work so as to provide affordable loans to those who have spent their lifetime trying to protect the interests of our great country.
The Veterans Affairs administration acquires its own funding meaning it’s available even during the government shutdowns that occur every now and then. The interest rates are low for a VA loan qualifying is easy, but the main benefit of these loans is the fact that you don’t have to give a down payment upon getting the loan. That’s right, you could pretty much get a loan without any upfront cost and just pay the monthly charges as if you were renting.
There are so many ways to go about lighten the cost of getting your first home. If you’re a veteran, police officer, teacher, or someone who really wants to live the Little House on the Prairie lifestyle, you could apply for one of these programs and get yourself a house of your very own without bankrupting yourself or falling into a pile of debt. Remember, living in a rural home that you own is far better than struggling to keep up with the payments on an urban mortgage.