General Disclaimer: All the articles here are presented with no warranty. The information displayed on investingbytes.com may be different from what you see when you visit a financial institution, service provider, or a specific product’s site. We are not responsible for any errors or other inaccuracies in the content on our website. The information provided on our website is solely for informational and educational purposes, We recommend that you obtain considered and independent advice from a financial professional before you make any financial decisions or implement any financial strategy.
Advertiser Disclosure: Card Listings and other financial products that appear on this site are from financial companies for which investingbytes.com may receive compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. Investingbytes.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Understanding the grants for first time home buyers
For those planning to buy a house but struggling with the obstacle of a down payment, especially those from either a middle-income or low-income household, can look into the option of securing a first-time homeowner grant. Saving money when you have a regular list of things to pay for including rent, utilities, grocery, car ownership, etc., can be highly improbable. Under these circumstances, the only economically feasible option would be to get a homeowner grant and buy a house without a down-payment.
What are first-time homeowner grants?
These grants take care of the down payment requirement by working in combination with low-down-payment mortgages, through which an aspiring homeowner can buy a house without an actual down-payment as well as take care of the first mortgage payment.
In general, a down payment of about 3.5% of the total cost of a home has to be prepaid in an FHA mortgage. In some cases of mortgage grants, a 3% down-payment may be allowed. However, first-time homeowner grants remove this down payment option.
These grants are mostly available only for first-time homebuyers, and only for those homes that will be owner-occupied upon purchase. However, there are certain lending institutions that define this criterion as an individual who has not owned any form of a home in the past three years. There is also the restriction that these grants would be unavailable for those looking for an investment property or looking to buy a second home.
Facts about grants for first-time homeowners
Some of the best affordable health insurance plans start from as low as around $390 per month for in...Read more
Firstly, you need to understand what renters insurance is. Assume you are living in a house as a ten...Read more
A student loan is a loan offered to those who need help to cover expenses relating to education. Th...Read more
If you are a true animal lover, if you take care of your pet like a family member, if you show half ...Read more
Subscribe to our newsletter to receive latest updates in the world of finance!