Government Grants for first time home buyers, make up the second type of down payment assistance. They have no seller conditions or contribution requirements. The only requirement to satisfy government assistance housing guidelines is that your family income must meet the stipulated minimum, which varies according to the number of your dependents and the median income for the area in which you intend to purchase. (Grants by state are linked below) Example: (This is only a SAMPLE - income levels typically are higher)
These government downpayment programs are typically done in the form of "Silent Seconds". This means there is no monthly payment, no interest is charged, accrued or paid and why we say "Free Money". The funds sit as a second mortgage on the home until the house is either sold (whereby the funds are repaid) or forgiven by the government (typically 5 to 15 years). Some down payment assistance programs actually require the funds to be repaid in the form of a monthly payment. This repayment becomes part of the qualifying process for the initial mortgage loan. Why use them? Typically, It's free money! There is no better reason than that! Now, for the most important question, how do you qualify? Well, it's pretty simple. The number one qualifying factor is income. You must meet the median income requirements established for your area. Then, you must be able to qualify and be approved for a low interest mortgage loan, and as a first time home buyer, you cannot have owned a home within the last three years. Your approval for a government assistance loan is almost assured if you can meet these three criteria. Typical Disqualifications:
Your Route To Home Ownership - Presented by Freddie Mac |
 | |
|
|