Home Buying Grants :
With the real estate prices soaring high, buying a home is a distant dream for low and middle income families. Unable to afford the down payment amount, most of them fail to realize their dream of owning homes. However, there are various federal and state government sponsored grants and programs aimed at providing financial assistance to such people.
The US Department of Housing and Urban Development (USHUD) is the most important resource agency to be approached for home buying grants. However, there are certain criteria that are required to be met so as to be eligible for HUD grants. HUD does not provide grants directly to the individuals. It works in coordination with state governments, local municipalities and various non-profit organizations for disbursing funds to the required customers. The grants are provided to only to customers who want to buy home.
Another interesting program is the American Dream Down Payment Act that authorizes $200 million to be distributed as grants to low-income, first-time homebuyers. This is a joint program of the government and the banking initiated with the objective of helping people in putting together the initial down payment, which is very crucial in buying a home. Income of the family and the number of dependants are the two major eligibility criteria for this grant program. Income of the applicant should meet the income requirements established in the area.
Most government down payment programs and grants are basically “free money” that do not require the borrower to pay any monthly payment. These funds just remain as such either till the house is sold by the owner or else is forgiven by the government. In case of selling the house, the loan amount has to be repaid to the government.
