Page 1

Home Buyer Grants and Programs It may seem daunting to shell out big bucks for your first home, along with a mortgage. Fortunately, there are countless first-time homebuyer programs and grants that can assist you to get your foot in the door of homeownership.

Take a look at the 10 first-time popular homebuyer programs: 1. FHA loan: This loan is insured by FDA or the Federal Housing Administration which is ideal for borrowers having low credit scores or only a little money to pay for the down payment.

2. USDA loan: USDA loan is a loan program which is guaranteed by the U.S. Department of Agriculture and is ideal for low-income borrowers in eligible rural areas.

3. VA Loan: VA loan is a type of loan which is backed by the U.S. Department of Veteran Affairs for American veterans, military personnel and their families. A VA loan has competitive rates, minimal closing costs, and requires no down payment. However, it requires a low funding fee for some borrowers.

4. Fannie Mae or Freddie Mac: Loans backed by Freddie Mac and Fannie Mae require a minimum 3% down payment for conventional mortgages which make them ideal for the first time buyers having strong credit but little money for down payment.


5. Good Neighbor Next Door: This is a HUD program which provides housing aids by providing a discount of 50 percent on a home list price in revitalization areas for pre-kindergarten through 12th grade teachers, firefighters, emergency medical technicians, and law enforcement officers.

6. Home Path Ready Buyer Program: This is a loan program which provides 3 percent closing cost assistance to the first time buyers to purchase a foreclosed Fannie Mae property who complete a home path educational course.

7. Energy efficient mortgage: Energy efficient mortgages are backed by VA or FHA a loan program which allows the borrowers to combine the cost of energy-efficient upgrades on a primary loan upfront without a large down payment.

8. FHA Section 203(k): This is a FHA backed loan which lets the borrowers to borrow funds required for home improvement rolling the cost into one loan along with the primary mortgage.

9. Local first time home purchaser programs and grants: Many cities and states provide the first time buyers with different programs and grants for closing cost assistance and down payment. These programs generally come with certain income restrictions and have to be repaid once the home is sold.

Native American Direct Loan: This loan program is backed by the VA loans. This program offer direct home loans to the eligible American military personnel, veterans and their families to purchase, build, or renovate homes on federal trust land.

Profile for Pete Toth

Home Buyer Grants and Programs  

It may seem daunting to shell out big bucks for your first home, along with a mortgage. Fortunately, there are countless first-time homebuy...

Home Buyer Grants and Programs  

It may seem daunting to shell out big bucks for your first home, along with a mortgage. Fortunately, there are countless first-time homebuy...

Profile for bank-rate
Advertisement