The Federal Government has offered various grants, tax credits, and loans to homeowners. President Barack Obama’s 2009 Stimulus Package was launched with a determination to provide a home for all. Grants are available to renovate your home and loan modifications have been made more affordable to save current homes. In addition there are several subsidies advertised for first time buyers.
Previously, home purchase grants and down payment assistance programs generally had the following guidelines:
Minimum credit history and credit score
Maximum income limits
First-time homebuyer requirement, i.e. must not have owned a home in the last 3 years
Available Funds Requirement Based on Criteria
How to Get Government Grants to Buy a House
With this new stimulus package from President Barack Obama, many new directives have been put in place. Here are some points that will help you better understand this package and therefore help you buy a house for yourself:
These decisions are spearheaded by the Federal Housing Administration, a department of the US Department of Housing and Development (HUD). Now, the only thing you need to understand is that HUD does not offer direct grants or loans to individuals. They work through local governments and non-profit organizations. They have now appointed a number of experienced and professional counselors to provide financial assistance and advice to people in obtaining their homes. They do not charge you anything unlike private counselors.
Neither grant would cover 100% of the cost of the house.
The government does not give a subsidy to people who cannot use it for the mortgage. Therefore, qualifying for a mortgage is an absolute must.
ยท You must attend a HUD-approved Housing Counseling Class to get help from the Federal Government to buy a home for the first time. This class helps you organize your finances.
Plus, first-time homebuyers have ample tax credits to aim for. Also, there are various personal loans available that can be invested to buy a home.