Top Home Grants to get you Into a New Home

By: Maria J., Published: Jan 15, 2020 | Related: First Time Home Buyer Assistance

For many who are looking to purchase their first homes, it can be difficult to figure out how to come up with the large down payment that is usually needed to secure a mortgage. For a lot of people, there just isn't a lot of money after saving to start a family or paying off student loan debts. Don't feel alone if you are someone still struggling with these issues. According to research conducted through a National Association of Realtors, more than eighty percent of first-time home buyers are able to find a way to buy their first home without coming up with the full twenty percent down.



If you are ready to buy your first home, there are plenty of home grants from the federal government that you can apply for to get help getting a mortgage with less than twenty percent for the down payment. Below are some of the top grant programs that are available to any first-time home buyer.

HUD Programs

The HUD department has a program called the Good Neighbor Next Door. It can help first-time home buyers save a lot of money on the purchase of a home. The department will list eligible properties to purchase on their site by state. This HUD program is not exclusively for the first-time buyers, however. Anyone in the fields of firefighters, law enforcement officers, teachers and emergency medical technicians may apply.

In order to apply, you will need to prove you are going to live on the property for at least three years or more in order to get up to fifty percent off of the list price of the home. The properties that are available through this program are typically ones found in areas of rural abandonment, urban blight and other places where most people are reluctant to purchase a home. Before you make your final decision, you should weigh the location of the property with the savings you will get first.



National Homebuyers Fund

This fund is one that offers new homebuyer grants in multiple states across the country. Once you are able to find a participating lender, the program will work to help you buy a home providing you up to five percent of the amount of the loan you are looking to receive. This is a grant and will not have to be paid back. Some of the eligibility requirements for this program are similar to ones found with VA, FHA and USDA loans. Be sure to check with the participating lenders for more information about the approval process including income limits based on the housing market and location you are interested in.

VA Loans

The Veterans Administration loans are ones given out to current or past veterans of the United States military branches. The main advantage of these loans is that you will not be required to put any down payment on the mortgage. This is not specifically a program for first-time homebuyers or a grant. However, it can be extremely useful for any first-time home purchasers who are being held back because they cannot come up with a down payment required with most traditional lenders or mortgages. As long as you currently meet the military service requirements, you will be able to qualify for a VA loan.

USDA Loans

These types of loans are perfect for homebuyers who do not mind living in an area which is considered rural. If you don't mind, you can get a loan from the Department of Agriculture. They offer many loans through their home purchasing program to help those with low or moderate incomes. While you will have to meet certain income requirements, you will not have to come up with down payment in order to participate or qualify.



First Home Club by Quontic Bank

This club is one that many have not heard of before. It is a way for loan borrowers to try and receive matching funds towards a down payment. This program is only offered in New York, however. With this program, you will be making deposits monthly into a savings account with Quontic Bank. For every dollar that you are able to save on your own, you will get up to four more dollars in matching funds. The amount can go up to $7,500 towards the down payment cost of your new home mortgage.