About 33% of home buyers are first-time buyers. Many of these new homeowners sought out assistance when purchasing their first home. This is because it's notoriously difficult for first-time buyers to secure the financing required.
A homeowners grant can provide the right amount of assistance to help you buy your first home. Here are five reasons why you should consider applying for one today.
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1. Invest in Property Development
You can find great deals on a property that's in areas that need development and revitalization. If you're a law enforcement officer, firefighter, EMT, or teacher, you can qualify for the Good Neighbor Next Door Program.
Not only do you get a good deal on the property, but you could receive up to 50% off the list price of the home. All you have to do is agree to live in the house for 36 months.
2. You Have a Small Down Payment Saved
The ideal down payment to have saved is 20%, but conventional loans require about 3%. The more you save, the better the loan terms, and the less interest you pay over the life of the loan.
The National Homebuyers Fund can help give your down payment a boost by providing up to 5% of the loan amount. The best part is you don't have to pay it back.
3. You're a Veteran or Active Military
This one isn't limited to first time home buyers. The government backs your loan so that you can secure better loan rates, and there's no down payment requirement.
This grant is especially helpful for those who are injured during service and need an adapted home. An Adapted Housing Grant will make it possible to buy an adapted home to make living with service-related injuries easier.
4. You Don't Qualify for National Programs
Federal grants are not plentiful and have specific requirements to qualify. Look locally for a homeowners grant. These grants tend to focus on income level and specific location.
You'll find that these grants get administered on a state or county level. They'll then have terms that require you to live in the home for a specific number of years. For example, 20% of your grant will get forgiven each year for five years.
5. You Have Limited Income and No Down Payment
As more people move to urban areas, the government has an interest in convincing people to move back out to more rural areas. If you're willing to live outside of heavily developed areas, you can get a USDA loan.
To qualify, you'll need to buy property in a rural area and meet income requirements. You won't need a down payment, though.
Apply for a Homeowners Grant
If you're about to buy your first home, you don't have to do it on your own. By applying for a homeowners grant, you can make your dream a reality sooner.
Pay attention to the grant's requirements to ensure you qualify. Then follow the grant's stipulations so that you don't end up owing money you didn't plan on. A common requirement is that you must live in the purchased home for a specific amount of time.
Browse our blog for more tips and tricks to save and use money wisely.