Grants for Buying a Home
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Most people dream of owning the home because it is the main physical manifestation of achieving the American Dream. It has been the long-standing policy of the US government to encourage private home ownership, and as such, there have home-buying grants since the 1930s. The most recent manifestations of this are the 2003 American Dream Down Payment Act, and the recent the Federal Housing Administration (FHA) recently confirmed its ongoing role in helping people get grants to buy a home with the FHA-Secure program, which helps those hurt 2006-2008 Subprime Mortgage Crisis. Despite the bursting of the housing bubble and the high-profile bailouts of Federal mortgage giants like Fannie Mae and Freddie Mac, the government is still in the business of giving grants to help people buy a house.
American Dream Down Payment Act
President Bush’s The American Dream Down Payment Act (Ameridream) went into law on December 16. This Act created a joint venture between the American government and private banks to issue grants to low-income homebuyers. Grants issued under this program would be used for covering down payment costs and closing costs. Ideally, this would allow a low-income family, with difficulties in saving a down payment, meet the initial entry costs to home ownership, and swap paying rent for paying a mortgage and building equity.
To be eligible for Ameridream grants, one should be a first-time homebuyer, with an annual income below whatever 80% of the local average is. The maximum amount granted is 10% of the value of the house, or $10,000. The grant program is administered by the US Department of Urban Housing and Development. The Newsong Program Newsong provides a grant for all closing costs and the down payment. There are no income requirements, or any other limits on who may receive a grant beyond qualifying for an FHA loan. Newsong does not require any home inspection or personal credit checks, and offers grants of up to $25,000. Funds are available within 24 hours of the approval of the application. The Nehemiah Program The Nehemiah Program offers down payment grants to anyone who also qualifies for an approved FHA loan (not this means qualifies, not approved or making use of one). Therefore, the only income limits are what are necessary to qualify for an FHA loan in your area. Another benefit is that the program is available to repeat homebuyers, and can be used to purchase newly constructed homes. It provides a grant of up to 6% of the final contract price to be applied towards the down payment and closing costs. All three of these programs are grants, not loans, and are therefore “free money.” There is no interest, monthly installment, or any obligation to ever repay. The Federal Government uses programs like this to sponsor home ownership for hard-working, lower income families who can manage a mortgage payment, but who typically experience difficulties in building up the substantial savings required for a down payment, to achieve the dream of home ownership.
Grants.gov – Find Grant Opportunities – Opportunity Synopsis
The synopsis for this grant opportunity is detailed below, following this paragraph. This synopsis contains all of the updates to this document that have been posted as of 01/15/2009 .
Find Grant Opportunities The internet resource center for the recession.
Small Grants | USA Grants For Housing Great info to get small grants.
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