When you think about buying your first home, the expenses can quickly become massive. If you worry about safe and affordable housing beyond your financial reach, it’s worth inspecting the numerous programs created to help people obtain much-needed housing support.
Some government and private organizations help first time house buyers grants financial aid to needy families. Every organization serves different terms and conditions for those suffering from financial issues. Here are some programs for first-time house buyers:
FHA loan
An FHA loan is a contract the Federal Housing Administration assures for the first-time house buyer grants. It is a government agency that sets standards for how homes are financed and constructed in the U.S.
Requirements
500 to 579 credit score and a 10% down payment
580+ credit score and a 3.5% down payment
Buying a one-to-four unit property
Plan to exist in the home as your primary residence for at least one year
Benefits
Minimum required investment (or minimum down payment) is 3.5%
Lower credit score requirements
Fannie Mae HomeReady Mortgage program
Fannie Mae’s HomeReady Mortgage program serves both repeat and first-time home buyers. In addition, this program helps homebuyers who might qualify for a mortgage but might not have enough for a large down payment.
Requirements
Minimum 620 credit score
Either a first-time or repeat homebuyer
Maximum 80% of your local area’s median income
Benefits
Funds for the down payment are received from gifts, grants, or another loan
Meant to help lower-income buyers become homeowners
Minimum down payment is 3%
Freddie Mac Home Possible Mortgage
Freddie Mac’s Home Possible Mortgage program is a first-time home buyer grant. It gives low-to-moderate income homebuyers more credit flexibility to help them buy a home.
Requirements
Earn an income to or less than 80% of your area’s median income
Minimal of 660 credit score
Benefits
Meant to help lower-income borrowers become homeowners
Minimum down payment is 3%
HUD’s Good Neighbor Next Door program
HUD’s Good Neighbor Next Door program from the Department of Housing and Urban Development (HUD) supports law K-12 teachers, firefighters, enforcement officers, and emergency medical technicians to afford a home at a discounted price.
Requirements
Buy a home in a revitalization-approved area
Employed in one of the above professions Borrow a silent second mortgage for the amount of the home price discount
Plan to reside on the property for at least three years
Benefits
Designed to help educators, firefighters, emergency medical technicians, and law enforcement officers become homeowners
Help you save up to 50% off of the list price of a home
HomePath Ready Buyer program
Fannie Mae’s HomePath Ready Buyer program assists first-time home buyers and borrowers with closing costs, but they must, fortunately, complete an online education course first.
Requirements
Complete an approved HomePath ready buyer education course
Buy a Fannie Mae-owned, foreclosed property from HomePath.com
Benefits
Provides assistance with closing costs covering up to 3% of the home’s purchase price
Apply for first-time home buyer grants in the USA
Want to build your own house? Apply for providing first-time home buyer grants to get financial help from the government or other organizations. These grants are designed to help people buy their own houses. Visit USA Grant Application to apply for these grants and get a chance to fulfill your dream.