If you missed the boat on the lucrative first time home buyer tax credit which expired in April of this year, fear not. There are still many programs at both the state and federal level offering first time home buyer grants that you may benefit from. Unlike loans, grants translate to FREE money which you don’t have to pay back. They can really go a long way to helping you make your down payment and cover closing costs. Because this is free money, it is definitely something you do NOT want to pass up. Additionally, you can qualify for these grants even if you have bad credit.
Federal first time home buyer grants are available through the Homes and Communities program of the US Dept. of Housing and Urban Development.. Complete information regarding the the types of grants available, qualification criteria, and application forms are available on their website. A complete listing of grants available from the federal government is also available at Grants.gov. Keep in mind that the HUD defines a first time home buyer as someone who hasn’t owned a home in the last three years. Therefore, you may qualify for some of these grants even if the home you intend to purchase isn’t the first home you’ve ever purchased. Make sure you understand the conditions and stipulations of each grant that you apply for – some grants, for example, may require that you repay it when you sell your home. In addition, we strongly advise that you take your time to put forward a strong grant application to maximize your chances of being approved for the grants you are eligible for. There are many resources available on the internet to help you with this so make sure you take advantage of them.
The state in which you live may also offer some very lucrative grants for first time home buyers. In some cases, they amount to multiple thousands of dollars. Unfortunately, some states don’t offer cash grants but they may still offer low interest loans and other benefits. Be sure to take your time and thoroughly investigate all potential first time home buyer grants and other benefits you may be eligible for and apply for each of them. As we mentioned, because this is free money you have absolutely nothing to lose. Happy hunting!