Government Grants for First Time Home Buyers

Looking to purchase your first home?  Deciding to plunk down your hard-earned cash on a down payment and signing yourself up for a string of mortgage payments is not an easy decision to make.  Luckily, there are a variety of government grants available that make purchasing your first home easier on the wallet.  These grants usually come in the form of cash that can be put toward a down payment.

The best place to look for grants is the United States federal and state government websites.  First, take a look at your state’s Housing Authority website to see if your state provides first-time homeowner grants.  Not every state offers these grants, but in the states that do, the benefits can be well worth your time.  For example, in Kansas, first-time homeowners who earn at or below 80% of the median income for their area qualify for a grant of 15-20% of the purchase price of the home.  The state of Mississippi offers up to 3% of the mortgage amount as a grant.

A second stop is federal government websites.  Take a look at www.grants.gov, which is the federal website for all types of grants.  There are basic and advanced search features that allow you to search for a first-time homeowner grant.  Weeding through the results can take some time, but with a bit of effort you can find a grant that applies to you.

Also take a look at the U.S. Department of Housing and Urban Development, known as HUD.  This government agency has a list of all available funds at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. 

Once you know which grants you qualify for, you will need to fill out applications.  The applications will ask for personal information such as your address and social security number and for a list of the family members that live with you.  You will also need to provide income and expense information.  Fill out the applications completely and honestly.  You will receive word in a few weeks or months as to whether or not you have received the grant.

As always, be wary of grant scams.  Do not pay anyone money to give you a grant, search for grants or sign you up for a grant mailing list.  Finding first-time homeowner grants is easily done for free through online research.  Do not provide any personal information to grant search sites.  The only personal information you provide should be through official grant application forms.

Researching a first-time homeowner grand is time-consuming, but the payoff is worth it.  With some research and work, you can be well on the way to owning your first home.