There are 6 grants for housing that every homeowner and renter needs to know about.
1. First Time Home Buyer Grants
One of the major problems that middle- and low-income families face is raising a down payment to purchase their first house. Utility bills and insurance costs, however, are continually on the rise, thus leaving people with little to save for the down payment of a new house. And that is where first time home buyer grants come into play.
Technically, first time home buyer grants work together with low-down-payment mortgages. The grants are put in place to cover the down payment that you are required to pay when purchasing a new house. This means that the program’s beneficiaries will be required to make zero down payment when purchasing a home. This is because the first mortgage and the grant are able to cover the required costs.
You, however, must know that these grants are only available for first time homeowners with the exemption of individuals that haven’t owned a home over the past 3 years. Additionally, these housing programs are only meant for buying owner-occupied homes. As a result, you cannot rely on them to purchase an investment property or a second home.
It is imperative to note that these grants also have limits set at a particular amount. Moreover, the grants have income limits, although the limits vary from one area to the next. Sometimes, beneficiaries of these grants are required to make small monthly payments. The balance of the grant, however, may be overlooked if you make consistent payments over a period of five to ten years.