Tips for Obtaining a First Time Home Buyers Grant
If you are considering the purchase of your first home, you are likely
looking at ways that you can save money and increase your chances of
being able to obtain loan approval. While the selection of homes is much
larger today and the prices are much lower, lending guidelines are also
much stricter. This has resulted in a difficult situation for many first
time home buyers. The answer to this problem could lie in the form of a
housing grant.
If you are interested in obtaining a first time home buyers grant to assist you in purchasing a
home, you should understand that first you must have a lender and you
must also have a good idea of the type of home that you will be able to
afford. You must get these steps out of the way first. In addition, you
should also know that while a housing grant can be quite helpful, it will not
pay for the entire cost of a home. Also, depending upon the type of
housing grant program for which you apply, your lender may actually need to
assist you with the application.
Once you have secured a lender and have an understanding of the type of
home you will be able to afford, the next step is to go the HUD website
to find information on housing grant programs that may be available within your
state. After you arrive on your state's information page, look on the
Buying a Home tab and then look at the Assistance Programs link.
From here, you will see that there are two different categories. They
are the Regional/Statewide programs and the City/Town programs. Make
sure that you have read through all of the information for each program
that is available. Every program has different qualifications, so it is
crucial that you make sure you look through all of the qualifications
and requirements to be certain that you meet all of the required
criteria.
After you decide which programs you qualify for, you will then need to
narrow them down and select the program that will provide you with the
largest amount of financial assistance. You should be aware that some
programs may have stipulations. For example, a program may require that
a grand be repaid if the buyer should decide to resell the home.
Once you decide on the program that you want to apply for, you then need
to look at the dates for the funding. Many programs have rounds for
funding. It is not at all unusual for some programs to run out of
funding well in advance of the deadline. This means that it is crucial
for you to submit your application early. Ideally, you should make a
point to submit your application so that it will arrive on the first day
that funding becomes available. You should always keep in mind that
there are literally hundreds of other people who will also be sending in
applications, so make sure that you do not delay.
In some cases, you may be able to download an application for the
program from that program's website. Make certain that you complete all
of the information required on the application. Also, be certain that
you submit any required supporting documents. If you leave out any
information or required documents, it could cause the review of your
application to be delayed or could cause your application to be
rejected. For instance, if there are income requirements for the program
that you want to apply for, you need to make sure that you submit all of
the financial documents required.
Many grant programs can assist you with closing costs and your down
payment, but there are also some grant programs that will provide
financial assistance that can help toward the actual purchase of the
home. It really depends upon the exact program and where the funding
stems from.
Keep in mind that if your income is relatively low, then you may have a
better chance of being approved for a grant. Other factors that could
help you in the approval process include having a disability, being a
veteran, living in public housing or being a senior citizen.
While there are no guarantees that you will be approved for a grant, if
you follow these guidelines you will certainly have a much better chance
of having your grant approved. If your grant is not approved, you might
also consider asking the seller for a contribution toward your closing
costs and down payment. Many sellers are so desperate to sell they might
just consider it.
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