For many renters, purchasing a home can seem like a dream, but one that’s out of reach. Securing a mortgage and paying for a home can be costly. But fortunately, it’s easier to get help buying a home than you might think. In fact, there are thousands of grants that can help you afford down payments and other common expenses that come with buying a home.
Finding these grants and applying for them is not difficult. All you’ll need to know is how you can find housing grants and how to determine if you qualify for aid. Continue reading to learn more about housing grant opportunities you may be eligible for.
There are several types of state, local, and non-profit housing grants that can help you pay for a home. For example, on common type of housing grant are down payment assistance grants. These grants help pay for a portion of your home’s purchase price that you can use towards your down payment. In some cases, grants are also available for your closing costs. These types of housing grants are more commonly known as down payment assistance programs, or DPAs.
In many cases, mortgage lenders require between five and ten percent of a home’s purchase price up front, depending on the type of mortgage you choose. For example, if you would like to purchase a $200,000 home, you may need to provide up to $20,000 up front. That can be a hefty price tag for low-income families.
As a result, DPAs are especially helpful to homebuyers who meet eligibility requirements for a mortgage, but cannot afford a home due to a lack of a down payment. You can find DPAs you may qualify in several ways, including by speaking with your lender, housing counselor, or by applying directly for assistance through one of the many programs available to you.
Homebuyers can find additional resources and housing grants from the U.S. Department of Housing and Urban Development (HUD). Many of these resources are available online. HUD resources may be available to:
- First-time homebuyers. In some cases, these programs are also available to homebuyers who have not owned a home for at least three years.
- Low-income households that cannot purchase a home because of their income.
- Individuals who work in specific fields, such as teachers, firefighters, and police officers.
If you’ve dreamed of owning your own home, but you’ve been held back by financial difficulties, you’re in luck. You can still make that dream a reality, even if you lack the finances necessary for a down payment. Click on the next slide to learn more about down payment assistance grants (DPAs), including how they can help and what you should know about DPAs.