Understanding First Time Home Buyer Grants

When it comes to the real first time home buyerAfter a great deal of homework, I found a non-profit
grants, I hate to disappoint you, but they are greatlyagency that offered grants for people buying their first
misunderstood. Why do I say that? Many people arehome right in our own city. They had several hundred
trying sell books and CD's telling you how easy theythousands of dollars available.
are to get. It's not that easy.Wow, I thought this was great. So I proceeded to help
In this article I want to help you understand first timethe couple apply for the grant money. They were
home buyer grants and how they really work.going to buy a home with an FHA home loan. I really
HOW FIRST TIME HOME BUYER GRANTS WORKrecommend you do the same thing. Use the FHA
Each year the federal government will grant moneymortgage since it works well with the grant programs.
for housing programs. Without many exceptions it'sIn fact, HUD is the government agency behind the
done through the Department of Housing and Urbangrants and the FHA loan program.
Development or HUD.Sorry, I got to rambling on. To make a long story short,
Many people have been lead to believe these firstthe couple received a $5,000 grant. We used this for
time home buyer grants can be obtained on their own.the down payment. As long as they lived in the house
That's why there are so many websites, books andfor a specific period (5 years I think it was) they would
CD's being sold. The masses are told that all you havenot have to repay the money.
to do is apply and the FREE money is all yours andSo it was a true grant. FREE government money. The
you do not have to pay it back.only strings attached was how long they lived in the
Well, there is some truth to that but it's not quite sohome.
easy. Like everything else in this information age, it's allWHERE TO FIND FIRST TIME HOME BUYER
about the money. The money you put into the pocketsGRANTS
of the people selling the information.Ok, this is where the work comes in.
Please keep reading to learn how you can get a firstEach and every state has non-profit agencies who
time home buyer grant.get this grant money for first time home buyers. Finding
HOW TO FIND FIRST TIME HOME BUYERthem is the trick.
GRANTSIf you go to the HUD website, search for grants in
First of all, save your money. Don't bother buying thoseyour state. Then drill down to find the counseling
books and tapes. First time home buyer grants areagencies in your city or nearby. Once you find one,
found right in your own neighborhoods.give them a call.
What happens each year is HUD will allow so manyYou will need to attend a class on home ownership. It
millions of dollars to go to non-profit agencies in yourvaries in length, could be one day long or two. They
community.want to help you understand the responsibilities of
So how do you find these agencies? I'm glad you ask,home ownership and help you stay in your home.
because I want to tell you. Before I do, allow me to tellThese agencies are funded by the US government
you a little story.and are there to help you. They get the grant money
I used to be a loan officer for a large national bank. Ieach year and when it runs out, you have to wait until
specialized in first time home buyer loans. I reallynext year.
enjoyed helping people buy their first home and realizeSo do your homework and search at the source itself.
their dreams.Go to the HUD website and browse around. It's not
I had this couple one time who wanted to buy a home.that hard. Just be patient.
She asked me about first time home buyer grants. IThe programs do change from year to year. So the
was not the sharpest knife in the drawer so to avoidagency will be better able to tell you what's available.
looking too stupid I offered to find a grant for them.All you need is the phone number to get started.