What You Should Know About First Home Buyers Grant
Reviewing Your First Home Buyers Grant Options Before Buying Your First Home
If you have never owned a home before and you feel that you can make the monthly payments towards owning one but simply can’t afford that first down-payment, then there are a variety of options that you can take advantage of depending on your income. Before you start shopping for that first home it is important that you take a look at them and how you can possibly save thousands of dollars in the process.
One great way to save is for you to take advantage of a government-sponsored first home buyers grant. The term “first home buyers” is actually a rather loose definition as the only real eligibility requirement is that you have not held ownership interest in a home in the last three years and meet the required income level for your area. Owning rental properties or a vacation home will not lead to disqualification of eligibility, and owning a primary place of residence outside of the United States will still allow you to take advantage.
Why should you take advantage of this first home buyers grant? Because what it basically boils down to is it’s free money with no monthly payments, no interest that accrues each month. The fund acts as a second mortgage on the property until it either sold or the grant forgiven. There are certain stipulations that can require you to stay in the home for at least three years before you are able to sell it or else the grant has to be repaid. But grants for first home buyers are generally forgiven after a period of 5 to 15 years. The best first step in finding a government-sponsored grant is to contact a Department of Housing and Urban Development office near you. There you can learn about opportunities in your area and receive low-cost counseling or even counseling that comes free of charge.
Another opportunity for buying your first home comes in the form of a mortgage that many financial institutions offer to those who don’t have any equity from a previous property to help with costs associated with down-payment, closing fees and other costs. Certain FHA (Federal Housing Administration) approved lenders offer programs that include most closing costs and fees in the loan with down-payments as low as 3.5% of the purchase price. There are also credit requirements before you can get approved for first home buyers grants. It is recommended that you get a copy of your latest credit report and you are entitled to one free credit report each year. If you have a low credit score around 620 or below then you will probably be denied first home buyers grant application. Likewise for those who have had government loans that have defaulted or home buyers who have experienced bankruptcy in the past.
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Tags: Buying Your First Home, First Home Buyers, First Home Buyers Grant