First Home Buyers Grant

What Is the First Home Buyers Grant and How Do You Qualify for It?

The first home buyers grant was made possible with the American Dream Down Payment Act and is designed to make it easier for low-income people and families to purchase their first home. The programs that benefit new home buyers are made possible through joint ventures between the federal government and banks.

Such programs for new home owners are expected to have a positive effect on the national economy by establishing loans that are more affordable for first home buyers. The first home owners grant is not only designed to make the down payment more affordable when buying your first home but it’s also helpful in paying off the mortgage.

It is important to remember that even if the first time home buyer has a poor credit standing, this will not have an effect on the first home buyers grant. A key advantage of this grant is absence of an interest charge so that your only concern is the repayment of the amount that was actually borrowed. The only prerequisite for qualifying for the grant is the minimum amount for family income. This value may change depending on the location of the property and the computation of the minimum amount is dependent on the number of dependents and the median income.

The first home buyers grant is provided in the 2009 Stimulus Package of President Barack Obama. This particular law defines the first time home buyer as one who was not the owner of a principal residence for at least three years. For couples, the maximum income to be able to qualify for the grant is $150,000 and $75,000 for individuals. The house to be purchased should serve as the buyer’s main residence and you are not allowed to sell the property within a span of three years.

It should be noted that the first home buyers grant is given to couples and individuals to stimulate the housing industry by accelerating the sale of houses. With more houses sold so that there are less homes available for sale, the residential real estate industry is expected to improve and so will the rest of the national economy. Moreover, local governments may want to encourage developments in certain communities and neighborhoods. For these initiatives, home buyers may take advantage of grants to help them with the closing expenses or the down payment just by choosing to establish a home in a specific location. This grant also takes into account the fact that those who are purchasing a home for the first time do not have any equity to help them and that they usually underestimate the total expenses that are required to get a new home due to taxes, unexpected fees and closing costs.

First Home Buyer Mortgage