Government grants for first time home buyers
Feb. 7, 2010
-- Even though the current ups and downs in the local market could have made it easier for young couples to purchase their first home, truth is new requirements imposed by banks on mortgage applicants currently make it extremely difficult to qualify. Also, the perspective of hefty monthly payment and often the need of a considerable initial capital are turning US buyers away from mortgages and into the realms of government grants for first time home buyers
. But, what are these federal -and private- housing grants and how are Americans finding them?
Let's start by saying that one of the main differences between a mortgage loan and government grants for individuals is the fact that, generally speaking, the grant applicant won't have to repay the money should he qualify for financial help. Government grants for first time home buyers often have a catch, though: for the benefit above to be valid, the home needs not to be resold within a 20 year period. However, should the owner decide to do so before that term expires, all he would have to repay would be the initial capital, without any interests whatsoever. Considering inflation rates and the fact that a property typically gains 5%-7% in value per year, it becomes clear the reason why private and government grants for homes are so attractive for many.
Now, does this mean that home buyers are longer dealing with banks altogether and just obtain free money from heir favorite federal housing grants? Unfortunately, no. However, since government grants for first time home buyers provide a rock-solid backup for the loan, qualifying for a mortgage is much easier in these cases. Also, since there are no monthly payments, the pressure on the loan holder is much less and qualifying process tends to go smoothly as long as some basic requirements are met.
The most basic conditions to be met in order to get government grants for first time home buyers are pretty straight forward, as verified by most federal government grant applicants: being a US citizen and not previously owning a house, of course. Banks will also ask you to meet certain credit requirements, but they're much more lenient when a federal grant for a fist time home buyer is involved, as mentioned above. The difficult part is finding the most appropriate credit institutions to turn to when applying for the mortgage and getting qualified advice to further smooth a somewhat complex process. Fortunately, a few private communities have recently sprung to fill that void by providing information and support to government grant applicants. which tends to make the process of qualifying for most government grants more straightforward.
You can find in-depth information and tips on locating government grants for first time home buyers
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Division of Incredible Products Publishing dedicated to the release of news and information on government grants for first time home buyers, private and government grants for women, grants for single mothers and tips on locating new private and federal government grants for individuals.