If you are considering purchasing your first home, the FHA could be exactly the resource that you’re searching for. The good news is that first time home buyer grants do exist, and are quite widely available in the US.
A new home buyer’s down payment may be as little as 3.5% of the buying price, and almost all of your closing fees and costs can be incorporated into the loan.
While not exactly the same as a government grant for a first time home buyer, the Federal Housing Administration can help give you the extra assistance you need to get into, or fix up a home.
HUD Government Grants
FHA lending has helped the American population to gain the distinction of being homeowners since 1934. A division of HUD, the FHA (Federal Housing Administration) backs the mortgage, so that you can enjoy an improved loan agreement through discounted closing costs and down payments.
FHA even offers a loan that will not only assist you in the buying of your home, but allow you to fix it up, and mash all the costs into one loan. If you just happen to be 62 years of age or more and you live but in your own residence, meaning that you either have an exceedingly low balance left on your loan or own it outright the FHA Reverse Mortgage may be just the kind of assistance that you’re looking for.
This refinancing option will allow you to convert part of your home equity in two straight up cash. Yet another form of home buyer’s assistance comes in the form of being able to include the costs of energy improvements in an FHA Energy-Efficient Mortgage.
And finally, the FHA even offers sponsorship for the purchase of factory-built housing or mobile homes.
There are actually two loan offers: 1) is for mobile homes which will be or already are situated in an existing mobile home park; 2) for home buyers that already own the site where the home is located.
Housing Grants: First Time Home Buyers
Most federal grants are meant for buyers purchasing their first home, and are proposed to assist those home buyers on their way to home ownership. This funding should not be anticipated to pay for a very big chunk of the new home’s price, however.
Buying your first home is extra fun when you don't have to worry about the funding coming through.
Almost all of these first-time home buyer grants pay for less than 10% of the value of the house, or can only assist in payment of certain costs that go along with buying a home (i.e. closing costs).
Home buyer funding is there for only part of the costs of buying a new home, and of course there are rules in order to qualify for such. Normally, grants won’t be handed to an individual that does not qualify for a mortgage.
Every first time home buyer federal grant program requires the person to go to a HUD-approved counseling class about owning a home as well. These classes and education helps get the individual ready for ownership of their home by showing them how to get their finances prepared, in order and on-track.
First Time Home Buyer Tax Credit
The singular remaining first time tax credit given by the Federal Government is only for those persons who are or were active duty service members.
Federal Housing Tax Credit applies to transactions with an obligatory sales agreement in place on or prior to April 30, 2011 and wrapped up by June 30, 2011 – although the programs change often, so it’s best to do some further research at the official IRS.gov website.
For more information on this tax credit, reference the “First Time Home Buyer” guide on the IRS.gov website for additional details on qualifying, receiving, and claiming the tax credit on your taxes.
By: Bradley Barks
About Brad
Brad is our lead researcher and editor - he enjoys business, meditation, being active and always learning - his goal is to successfully help you research, find, secure, and enjoy grants and scholarships.
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