There are many people relying on the low income first time home buyer grants to help them get their own home. It is no secret that people who have low income will find hardships when they try to get a home by themselves. Therefore, many low income families think that this is their last chance in securing a shelter of their own.
Several sources have been known as the source for home assistance program, but the most reliable one would be our own government. The reason is pretty simple: they have the money for it. Grants from the federal and state government is available as an effort to help reducing the homeless and providing basic needs for everyone.
Low Income First Time Home Buyer Grants Program
As you know, grant is basically free money. Therefore, you don’t have to repay the money, unlike the loan. Below are some of the programs offered by our Federal Government, which is then distributed by the state government through respective department or agencies:
Home Builder Incentives
Typically, federal grants cannot cover the full cost of a house. Usually these programs will only cover 10% or less of the total cost for the home. Therefore, it is often that the money is used to help these new homeowners to pay for the down payment or the closing cost.
Just like any other grants coming from the government, several strict rules and requirements are applied. For example, the prospecting homeowner should attend house counseling classes, consisted of various technical knowledge of preparing for the ownership of the house (which mostly about the financial management) which is approved by HUD. You can check out the house counselors list from the HUD’s official website.
HUD has a complete inventory of house counselors on their website. Information for all 50 states can be found here.
American Dream Down Payment Initiative Grant (ADDI)
It’s a program that was started during the George Bush era back in 2003. The program was first started to proof the aggressive housing policy by Bush stated in 2002. The ADDI grant is given to help first time homeowners with the down payment of the house. The grant is distributed to each State and administered by the state’s Department Housing and Urban Development. Each of the state may have different requirements, but most stated that the applicant should have a below 80 percent of income compared to the median income in that area. A limited percentage of the money can also be used to rehabilitate the house. The amount covered is around six percent of the total house cost or $10,000, whatever bigger.
HOME Investment Partnerships Program
HOME is another federal program for housing assistance to help the poor. Available through the state and local government, the program help for housing rentals. It is important to note that only families with less than 60% adjusted median family income in that area are eligible for the grant.
Other Grant Programs
Other notable grant programs that may be able to help you are the Community Development Block Grants (CDBG), Emergency Shelter Grants (ESG) and Housing Opportunities for Persons with AIDS (HOPWA). To see other opportunities, we highly recommend you to make an appointment with a social worker who will be able to give you further information about the low income first time home buyer grants programs.
References:
- U.S. Department of Housing and Urban Development
- Image: blog.rossmortgage.com
