In addition to loans, the government also provides first-time home buyers with other forms of financial assistance such as grants. These have different requirements you may need to meet, but they can all be helpful for a first-time homebuyer. The following are some of the best grants available to first-time homebuyers.
Good Neighbor Next Door Grant
The Good Neighbor Next Door Grant is an incentive to help developing and revitalized neighborhoods gain a stronger and safer community. This grant pays for a portion of a home’s purchase price for police officers, teachers (K-12) and emergency workers who choose to move to revitalized neighborhoods.
The amount the Good Neighbor Next Door Grant covers varies from neighborhood to neighborhood, but the grant can cover up to 50 percent of a home’s purchase price for eligible areas. The only condition is that eligible candidates must agree to live in the home for at least 36 months, or else they will also need to pay for the amount of the mortgage the grant covered.
National Homebuyer Fund (NHF) Grant
The National Homebuyer Fund (NHF) is available to first-time homebuyers and is a grant that can help cover up to 5 percent of the purchase price of the home you wish to buy. This grant is also compatible with FHA loans, VA loans and USDA loans so you can use this grant in tandem with government-backed home loan options.
Many homebuyers cannot comfortably afford the 20 percent down payment expected of most buyers on the market, so the NHF grant helps relieve some of the financial burden and allows homebuyers to build equity quicker. This grant is available in all 50 states and you only need to apply for the grant through your state’s housing agency in order to see if you qualify.
First Home Club from Quontic Bank
The First Home Club by Quontic Bank is a grant matching program that helps first time home buyers save for their first home purchase. If you are eligible, all you will need to do is deposit money into your Quontic Bank account and for every dollar you deposit, Quontic Bank will deposit $4 into your account.
This can continue until Quontic Bank reaches a $7,500 limit. The money you receive from being part of the First Home Club program can be put towards the down payment or closing costs of the home you wish to purchase. To be eligible, you will need to open an account with Quontic Bank and apply for the First Home Club program.
Lastly, you can also research local grant programs offered by the housing agencies in your area. There are many state-specific and even county-specific housing grants that you may be eligible for if you are low-income or a first-time home buyer, so be sure to check with your local housing agency.