Building a house can be a lot of work, with so many unpredictable costs, and so many others.
Also, buying a house isn’t an easy task considering the one will need to go through to get one. and now that the housing market has skyrocketed, it is no more complicated to buy a house than ever.
For this cause, grants have been set up to help/assist home buyers, especially first-time home buyers with some money.
A grant is an amount of money that a government or other institution gives to an individual or an organization for a specific purpose such as education or business purposes.
In this post, I will address things concerning home buying and home buyer grants.
Make sure to carefully read through this article to get acquainted with the necessary information concerning First-Time Home Buyer Grant.
What is a Grant?
Grants are funds from the government, which they use to fund your ideas and projects to provide public services and promote the economy.
As stated earlier grants are some of the most common forms of federal assistance/aid. Federal financial aid is a wide term to refer to the numerous strategies the government redistributes resources to eligible recipients.
What is a First Time Home Buyer?
The word “first-time homebuyer” commonly refers to an individual who purchases a major property for the first time.
First-time homebuyers often qualify for special benefits such as low down payments, special grants, and assistance with paying closing costs that are sponsored by state and federal governments. Many lenders also offer first-time homebuyers incentives and special loans.
The U.S. Department of Housing and Urban Development (HUD) expands that definition even further. According to the agency, a first-time homebuyer is:
- Someone who hasn’t owned a principal residence for the three years ending on the date of purchase of the new home.
- An individual who has never owned a principal residence even if their spouse was a homeowner.
- Anyone who is a single parent who owned a home with their ex-spouse.
- A displaced homemaker who only owned property with their spouse.
- A person who only owned property that wasn’t in compliance with and cannot be brought into compliance with local or state building codes without constructing a new permanent structure.
How to qualify for first-time home buyer grants
The requirements to qualify for a first-time home buyer grant depend on the down payment assistance programs available where you live.
“Every state in the country has a housing finance agency, and all offer special programs for first-time buyers,” says Anna DeSimone, author of Housing Finance 2020.
And the first-time home buyer assistance typically comes in one of two forms:
First-time home buyer grants: Money towards your down payment and closing costs that do not have to be repaid
First-time home buyer loans: Money towards your down payment and closing costs that’s either repaid at a very low-interest rate or does not have to be repaid until you sell the home or refinance.
Available Home Buyer Grants Grants
BECU First-Time Homebuyer Grant
Eligible applicants can get up to $10,000 in down payment assistance.
- Receive up to $10,000 towards a down payment or closing costs
- No repayment required
- Eligible members may pay as little as 1% toward their down payment or closing costs
Eligible homebuyers may also qualify for an additional $2,500 grant with the Home$tart program for a total of up to $12,500 (when paired with the BECU First-Time Homebuyer Grant).3 A BECU mortgage advisor can help determine your eligibility. Connect with an advisor today.
- Become or be an existing BECU Member3
- Be a first-time home buyer
- A credit score of 660 or higher
- Loan amounts up to $726,200
- Contribute a minimum of 1% of the down payment (additional closing costs may be required)
- The total income of all borrowers on the loan may be up to 100% of the Area Median Income (AMI) for the
- BECU First-Time Homebuyer Grant and up to 80% of the Area Median Income (AMI) for the Home$tart Grant.y
- Complete a homeownership course
- Single-family residence (one-unit home, condo or townhouse).
- Primary residence, with the intent to stay for at least 3 years.
- The home must be located in Washington, Oregon, South
How to Get Started
There are three main ways to get started.
- Contact a local BECU Mortgage Advisor
- Call us at 800-233-2328
- Visit a BECU location
National Homebuyers Fund
The National Homebuyers Fund (NHF) is a grant that covers part or all of your down payment or closing costs, up to 5% of the total loan amount. It’s available in all 50 states and doesn’t have to be repaid, although it’s sometimes provided as a 0% interest rate second mortgage. It can be used for either purchasing or refinancing a primary residence.
There are some important details of the NHF grant:
- You must use a participating lender to qualify.
- You must be able to use it with any loan type—Federal Housing Administration (FHA), Department of Veterans Affairs (VA), U.S.
- Department of Agriculture (USDA), or conventional.
- You must live in the home for at least three years.
To get more information on the National Homebuyers Fund, click on the link below.
Conclusion On The $5000 First-Time Home Buyer Grant
In conclusion, the article blatantly depicts full-on details concerning grants and first-any more unknown information isn’t anymore an unknown information to you.
And make sure to attention to the details above, so as to get a quintet with the necessary information.
And another helpful fact about the first-time home buyer grant is that as a first-time home buyer, you’ll learn a lot about the mortgage process as you go.