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Get Money To Buy A Home Now – Best Grants for Homeownership

Get Money To Buy A Home Now – Best Grants for Homeownership
MBL Editors

Best Grants for Home Ownership

Buying a home can be very expensive, and very few people can purchase one outright. First time home buyers may find it a very overwhelming process that takes a lot of work and money. Even when you apply for a loan, there are still costs that you need to pay out-of-pocket such as expenses for down payment, closing, remodeling and renovation. Fortunately, there are ways to augment these expenses, and one is to apply and qualify for a homeownership grant.

Unlike home loans, a grant is money (provided to you for a specific purpose) that you do not need to pay back. The U.S. Department for Housing and Urban Development, for example, has the Home Investment Partnership Programs where they partner with states, local communities and large organizations to fund a wide range of home ownership activities including house construction, purchasing and rehabilitation. These programs are implemented in all 50 states, with information available in city and state housing offices.

HUD Homes – Here is the link to search for HUD Homes which often can be bought for amounts as low as $5000.

American Dream Downpayment Initiative

The American Dream Downpayment Initiative is a federal program that funds up to $200 million in grants every year for all fifty states. This program was created to provide funding for rehabilitation, down payments and closing costs for homes newly purchased by first time buyers. The program provides assistance of up to $10,000 or six percent of the total home purchase price (whichever is greater).

Some Grants Across The Country

Here are some examples of home ownership grants implemented by various cities, jurisdictions and states across the country:

 Homefirst Down Payment Assistance Program – New York City

The HomeFirst program is for New Yorkers who do not have enough money to pay for down payment and closing costs. Qualified home buyers can get up to $15,000 to use for this initial expense as long as they meet all the criteria specified by the program.

Illinois Affordable Housing Trust Fund Program

Available to qualifying residents of the state of Illinois, this program offers individuals from the low and very low income bracket assistance for down payment and closing costs, which are available in the form of grants or loans. Grants range from $3,000 to $5,000 depending on the qualifications of the buyer.

Grants for Grads – Ohio

This program provides down payment and closing costs for home buyers who are fresh graduates who have recently earned their degrees (associate’s, bachelor’s and post-graduate degrees). Assistance provided is 2.5% of the home’s purchase price.

California CHF Platinum Grant – The CHF Platinum Program is designed to assist low-to-moderate income homebuyers with the purchase of a home, by providing down payment and/or closing cost assistance (currently in the form of a Grant). Many times this assistance means families and individuals can purchase a home much sooner than they thought possible.

Demographic Specific Home Ownership Grants

Aside from state implemented grants programs, you can also find a wide list of grants that cater to a specific demographic. Some examples are the Supportive Housing for Persons With Disabilities Program, Housing Opportunities for Persons with AIDS, Home Ownership Grants for Single Parents and Home Repair Grants for Senior Citizens.

Affordable Mortgages

Now, so you’ve found a grant program you think you may qualify for but you still need a mortgage. Then check out NACA, the Neighborhood Assistance Corporation of America they provide mortgage information and assistance to those with credit challenges or modest incomes.

Some Things to Remember

Mentioned above are just a few home ownership grants available in the country. When you’re considering applying for home ownership grants, remember the following:

  • Home ownership grants do not cover 100% of the house cost, but rather provide assistance and lower your mortgage expenses.
  • Not everyone can qualify for grants. There are specific eligibility criteria that you have to meet in order to qualify. This includes your citizenship, age, income level, assets, previous home ownership and market value of the home you intend to purchase.
  • Grants can vary depending on the state, municipality or organization awarding it. Thus, some states may have more stringent requirements or may release more assistance funds than other states.
  • Grants will only be awarded for mortgage purposes. They should go to your house down payment; hence you will need to qualify for a mortgage before being awarded the assistance.
  • Awardees will need to meet certain obligations as part of the grant. Examples of these are staying in your home or not moving out of state for a given period of time (usually ten years). You are also required to join Housing Counseling classes for certain duration.
  • The HUD does not directly award grants to individuals, but work with federal state governments, local government units and non-profit organizations for the implementation of grant programs. These groups then distribute funds to qualifying residents. Thus, the best place to as or inquire is your local or state housing authority.
  • Once you get in touch with your local housing authority, ask for the requirements and submit all them when you’re ready. They will then inform you if you meet the preliminary requirements of the program.