For single mothers, first time home buyer grants can be a great resource for being able to afford your first home. Everything is more difficult when you’re trying to raise a family with a single income and you have to pay for childcare because you are the only parent. But this does not mean that you can’t own your own home.
There are different kinds of home buyer grants that work in different ways. Whenever you’re looking into first time home buyer grants, it helps to know what questions to ask so that you can identify which program will work best for you.
What Costs Does It Cover?
The most important thing you can learn about first time home buyer grants is the fact that they do not cover a large portion of the cost of the home. Many programs only pay the down payment, while others may cover closing costs or rehabilitation of the home. The first question you should be asking about these grants is which costs it will cover. This can aid you greatly in figuring out which grant to apply for.
How Does the Grant Work?
Another major thing you should be asking is how the grant works. Some may come in the form of home ownership vouchers, which will help pay for your monthly mortgage, as well as other expenses that come along with owning a home. Often there is a waiting list for these vouchers, so it pays to be informed about what’s going on in your area. Check with the Housing and Urban Development office in your area to find out if any home ownership vouchers are available in your city or county.
In some cases, you may be able to qualify to purchase a HUD home. These are homes that are priced way below the market price for these homes. The U.S. Department of Housing and Urban Development usually acquires the properties through foreclosure, which is the reason they are priced so much below market value.
Almost anyone can buy a HUD home, but not everyone knows they are available. It is also very important to realize that HUD does not guarantee the quality of the properties. If there is a problem with them, then you will be stuck paying the price. Of course the very low price of these homes can still allow you to come out ahead.
If you do buy a HUD home that is in need of repairs, there are FHA 203(k) rehabilitation loans available. These loans allow the home buyer to get one mortgage that will cover the price of the home and also the rehabilitation it needs. This prevents the need to get financing for the initial purchase, more financing to fix the home up, and then a third mortgage to pay off all the debts incurred in the process of fixing the house up.
In addition to first time home buyer grants, there are also other government programs that can make it easier to buy a home. Each state has various programs that can help. For example, the Good Neighbor Next Door program in most states offers assistance to teachers, police officers, or firefighters. People who live in public housing also have access to a number of programs to help them be able to afford a home. FHA can also help you get a mortgage you can actually afford by giving you a lower down payment with your loan program.