Almost every American would love to become a homeowner, but for many, it is just not a reality. Even if they have the necessary income, employment, and debt ratio to qualify for a loan, coming up with the down payment and closing costs can be difficult. In fact, this is what holds many Americans back from achieving their dream of becoming a homeowner. The good news is that there are Home Purchase Grants available in areas throughout the United States. Understanding what to look for and how to apply can help you find the assistance that is right for you.
Finding Home Purchase Grants
The first step is to find the home purchase grants. HUD is a great resource for this step. On their website, they have a detailed list of programs available by area. If you click on the state you intend to live, it opens up a variety of resources available in that state. Under the heading “Buying a Home” you can choose the Assistance Programs link to find the assistance available in your state. For example, in Illinois, the following programs are available:
- American Dream Down Payment Initiative
- HOME Investment Partnership Program (a HUD program)
- Illinois Housing Development Authority
Each of these programs has their own requirements for eligibility. Understanding those requirements and talking to a professional counselor can help you determine the financial assistance you are eligible to receive. Each state has a similar listing of what is available to that state’s residents to help more people become homeowners.
Understanding the Requirements
Before you apply for any type of home purchase grants, you need to understand the program requirements. Reading the descriptions carefully online can help you get started. If you do not understand, you can always request the assistance of a HUD representative that helps potential homeowners understand their options. A few things that you need to understand include the income limits as well as the amount of allowed purchase price. These vary by program and even by county, so paying close attention to these details will give you the greatest chance at approval.
Choosing the Lender
Many of the home purchase grants require you to use certain lenders. They may not name one specific lender, but will provide you with a list of lenders that they approve of for use of the grant. Your local HUD office will be able to help you determine which lenders you can use. If you do not use an approved lender, you stand the chance of losing your grant money, so pay close attention to all of the details to ensure that you can use the assistance.
Applying for the Home Purchase Grants
The final step is to actually apply for the home purchase grants. Just like you must do when you apply for a loan, you must provide the issuer of the grant with pertinent information regarding your situation. This includes personal identifying information along with your financial information and background. The issuer might want to see your credit history or know your income amount to see if you fit within the limits set forth by the program. Every issuer develops the program to help a specific type of buyer, which you then need to verify that you fit so that you can obtain the necessary funds to purchase a home.
Finding home purchase grants does take a lot of legwork to help you find the one that is right for you. If you get turned down for one program, do not give up as there are many others out there. The more information you have about each program, the more likely it is that you will be able to qualify because you will only apply for the programs that you qualify for rather than those that you do not.