There are thousands of housing grants available across the United States. While specifics between different grants may vary, the following is generally true of most down payment assistance programs. The first is that Money is available on a limited basis.
Most state funded housing assistance programs receive a fixed amount of grant money to distribute every year. Once a program runs out of money, they will not be able to give out any grants until the following fiscal year. For this reason it is important to start the search for housing grants as soon as you decide you would like to purchase a home.
Most DPA programs are for first-time homeowners. If you already have purchased a home, you will not qualify for this type of grant money.
However, there is usually a loophole that may allow you to qualify for DPA even if you have owned a home in the past.
For many of these types of housing assistance programs, you can still qualify as a first-time homeowner as long as you have not purchased a home in the last three years.
Funds distributed through a DPA program cannot be used for vacation homes or rental properties that are purchased as an investment. The purpose of these types of grants is to give people the opportunity to purchase a home to live in. You must be planning to reside in the home that you would like to use DPA money to purchase.
In most cases, you cannot make a lot of money if you want to receive DPA. These grants mainly exist so that people who do not have high incomes can still fulfill their goal of owning a home. We suggest that you research the financial requirements of each DPA that you are interested in so that you do not waste valuable time applying for grants that you will not qualify for.