If you are looking to buy a house but have found the down payment to be the biggest obstacle, then you owe it to yourself to learn about getting a Grant for Down Payment on your home. To begin with, a grant is not a loan. This is money that is given to you for the sole purpose of helping provide the money needed for a down payment. In many cases, this grant money will be all that is needed for the total amount required to get the mortgage for your house.
A great mortgage program
If you have a good credit rating, but a limited income, you may qualify for financial assistance from the Federal Housing Authority. This government agency exists to help those in lower income brackets purchase a home that would otherwise be difficult or even possible to obtain. If you qualify for this type of loan, you will be getting help in two areas. The first is that you will be able to get a loan at a good interest rate because the government is backing the loan. The second part of the assistance is with the down payment. Unlike a commercial loan, an FHA loan is backed by the government, so a mortgage only requires a 3.5 percent down payment.
A grant program from a mortgage company
Of course, this small percentage can be a sizable amount of money for many families. This is where getting a Grant for Down Payment can be the solution to a down payment problem. The Guild Mortgage Corporation has what is called the Home in 5program. The number five refers to the typical amount needed to get an FHA loan. Along with the 3.5 percent down payment, there are closing costs that need to be paid as well. The total amount usually adds up to five percent.
Grant program from charities
Many non-profit organizations have grant programs to help lower income people with a down payment. The American Family Funds is such an example. They focus their efforts on those who are pre-qualified for an FHA loan. The AmeriDream program is another example of charitable grants programs; there are many.
Other sources of grants
Many state governments have grants to help with down payments with FHA loans as well. A Grant for Down Payment can also be obtained from a relative or a friend. Keep in mind, however, that it must be a gift. You are not required to repay the money. You will have to document this with your mortgage lender.Find My DownTM