Buying a new home is both exciting and scary, but first time home buyer grants can provide a little help with your down payment of mortgage and relieve some of the financial pressures that comes with buying a new home. New home owners are often surprised to see exactly just how much cash is needed in order to buy their new home. If you underestimated or are coming up short, obtaining first time home buyer grants is a great way to quickly come up with the money needed when buying a new home.
Typically a bank or mortgage lender will require at least a 20% down payment on a home. That means if you are looking to buy a house for $150,000, you need at least $30,000 just for your down payment. In addition to that, you’ll need thousands of more dollars to cover closing costs, taxes, title transfers, attorney fees and other real estate fees. That’s where first time home buyer grants can help.
What exactly are real estate grants?
Grants are not loans. This is typically tax payer money that has been set aside by your local or state government to help with various purposes. First time home buyer grants are provided to help individuals make home ownership a reality and provide some as stance with what might be the biggest purchase of their life.
The great thing about receiving a grant is that these are funds to help you with your down payment or mortgage that never have to be paid back. Because there is no repayment, often times applying for a real estate grant does not require a credit check, income verification or any kind of collateral. There are specific terms you’ll need to agree to, such as owning your home for at least 3 years, but otherwise the money is provided to help you with your purchase.
A first time home buyer grant is not intended to substitute a mortgage loan. While it is possible to obtain as much as $20,000 to help buy your new home, you will likely still need a home mortgage. But the cash you can obtain through a mortgage grant can be a tremendous help and provide instant equity in your new home.
Immobilienmakler Heidelberg Makler HeidelbergSource by Austin Warty