Buying a new home can be exciting and scary, but first-time homebuyer grants can provide a little help with your mortgage down payment and relieve some of the financial stress that comes with buying a new home. New homeowners are often surprised to see exactly how much cash is needed to buy their new home. If you’re underestimating or understaffing, getting a first-time homebuyer grant is a great way to quickly make the money you need when buying a new home.
Usually the bank or mortgage lender will require at least a 20% down payment on the house. That means if you want to buy a house for $150,000, you’ll need at least $30,000 just for your down payment. Plus, you’ll need thousands of dollars more to cover closing costs, taxes, title transfers, attorney fees, and other real estate costs. That’s where first-time homebuyer grants can help.
What exactly is a real estate grant?
Grants are not loans. This is usually taxpayer money that your local or state government has set aside to help with various causes. First time home buyer grants are awarded to help individuals make home ownership a reality and provide some as a gesture with what may be the biggest purchase of their lives.
The great thing about receiving a grant is that it’s a fund to help you with your down payment or mortgage that doesn’t need to be repaid. Because there are no repayments, often applying for a real estate grant does not require a credit check, income verification, or collateral of any kind. There are special conditions that you must agree to, such as owning the house for at least 3 years, but if not, money will be provided to help with your purchase.
First-time homebuyer grants are not meant to replace mortgage loans. While it is possible to earn as much as $20,000 to help buy your new home, you may still need a home mortgage. But the cash you can get through a mortgage grant can be a tremendous help and provide instant equity in your new home.