Owning a home can be a truly rewarding experience. Of course, this is something that comes along with a lot of responsibility, but it will be a fruitful investment. This is something that you will eventually own and one day can pass down to your children. That being said buying a home for the first time in by no means an easy feat. This is especially true when you factor in today’s economy. One of the biggest obstacles that most middle-class families face when buying a home is coming up with the down payment. The high cost of rent, utilities, car ownership, groceries, and other weekly expenses can make it hard to save money to cover that costly down payment. Well, this is where a first home buyer grant can come in handy.
How The Grants Work
A first home buyer grant is basically what the name suggests. It is a grant that is given to you by the state to cover the down payment of the home that you are buying. Most down payments are based on 3.5 percent of the total cost of the home. The grant will virtually allow you to purchase the home without making a down payment. The first home buyers grant should not be mistaken for a loan because this is not a sum of money that you have to pay back. These programs are only available for first-time buyers. Most states will classify this as an individual that has not owned a home in the past three years. In addition to this, the grants are only available for the purchase of owner-occupied homes. This means that you can’t use these grants to purchase a second home or property. It is also important to note that these grants sometimes come along with limits and restrictions.
Get In Touch With The Local Government
Any individual looking to take advantage of house hacking or the first home buyers grant will need to get in touch with their city or town offices. They will be able to provide you with the detail that you need for the grants. The Department of Housing and Urban Development should be able to provide you with a list of the available grant programs available in your area.
Make Sure You Qualify
Before you get your hopes up and get too involved in your plans, you will want to make sure that you actually qualify for the grants. As was mentioned above these grants come with stipulations and limits. This requirements and regulations will vary from state to state, but your local town hall or courthouse will be able to provide you with the information that you need.
Find A Lender
Once you know that you meet the requirements, you will have to find a lender. Your local housing agency should be able to provide you with a list of approved lenders. These lenders will be able to grant you the money that you need to make your very first down payment. Just remember that these programs only accept a number of individuals each year and it will be crucial to apply early.