Tips for Finding Home Purchase Grants and Loans

Published January 9, 2013 by

When it comes time to purchase a home, it can be difficult to find financing. This difficulty can stem from bad credit, due to mistakes made in your past, or it can come from a lack of credit. Both problems can leave you wondering just how you’re supposed to get the home that you need. Thankfully, home purchase grants and loans exist that can help you attain the home you want, even if you have bad credit, or cannot come up with the required down payment. Where can you find home purchase grants and loans?

The single most important resource available is HUD. The Department of Housing and Urban Development (HUD) can help you locate funds to use for almost anything in the home-buying process. It should be noted that HUD does not offer any loans directly to you, the consumer. Instead, they make their funds available through nonprofit organizations and charities throughout the US. It should also be noted that in order to qualify for any home-buying grants, you must first qualify for a mortgage – it doesn’t work in reverse.

How do you qualify for home purchase grants and loans? First, you must fall into the right consumer subset. The best area for this is the “first time homebuyer.” However, it need not be your first or even second home for you to qualify here. A first time homebuyer is defined as someone who has not had an owner’s interest in a home, within the preceding three years. If you have owned a home in the past, but it has been longer than three years, you may qualify as a first time homebuyer through the FHA.

Qualifying through the FHA is your first step in securing home purchase grants and loans. Once you have qualified as a first time homebuyer, you can submit to various charities in your local area for grants. It should be noted that these grants will not give you sufficient funds to pay off your home. They can make a substantial down payment, though. Finally, if you qualify for HUD home purchase grants and loans, you will be required to participate in a consumer-counseling class, designed to help you learn more about owning a home and the responsibility that goes along with it. When searching for home purchase grants and loans through nonprofit organizations, use the Internet as a powerful search tool and you will be able to find numerous organizations in your local area that provide this type of assistance.