By Bill Lyons | Updated on February 2, 2024
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    If you are interested in purchasing a house for the first time, you have probably realized that there are a lot of hoops that you have to jump through. Even though it can look like a significant challenge to purchase a house on your own for the first time, there are tools that you can use to make the process easier.

    You might be wondering how you will ever save up enough money for a down payment on a house, and one option is to get a grant that has been specifically designed for first-time home buyers. If you are interested in how to qualify for first-time home buyer grants, take a look at a few important points below. Then, reach out to a professional at Griffin Funding who can help you make sure that you meet the first-time home buyer requirements.

    What is a first-time home buyer grant?

    If you are looking for a way to make the process of buying a house just a little bit easier, then you should look at some of the grant programs available for first-time home buyers. This is a specific grant program designed to create new home buyers across the country.

    Because buying houses is an important driver of the United States economy, there are government and private programs in place to make the process easier. Specifically, governments award grants at every level to help people purchase houses. Local governments, state governments, and federal governments have money set aside that can help people purchase the house of their dreams.

    Unlike a loan, a grant does not require someone to pay the money back. Typically, you have to meet some strict criteria before you can qualify for a first-time home buyer grant, but grant programs are specifically designed to increase the public good. In this case, that public good is home ownership.

    Some of the major benefits of people purchasing homes include:

    • Purchasing homes tends to stabilize the economy because people stick around for a much longer amount of time if they are purchasing a house instead of renting one.
    • Homeownership can also increase the prosperity within all communities because a lot of people build wealth by owning a house. Then, they use that wealth to purchase other items that can drive the economy forward.
    • In a lot of cases, the wealth that people built through homeownership can be passed down to future generations, which increases the prosperity of the country.

    There are a lot of opportunities available if someone can qualify for a grant to purchase a home, but these programs come in many shapes and forms. Every program has its own requirements, which is why it is important to take a look at a few key points regarding grant programs.

    3 first-time home buyer grant programs

    If you are interested in grant programs that can help you purchase a house for the first time, there are several grant programs available. Some of the programs that you may want to consider include:

    • The $25,000 Downpayment Toward Equity Program: This is a program that is expected to start soon, and it stems from the bill that was passed by the federal government. This is a grant program specifically designed for people who will be the first in their generation to own a home. It has been targeted toward renters who have socially or economically disadvantaged histories. The program could award someone up to $25,000 they can use to make a down payment, cover their closing expenses, or reduce their mortgage rates.
    • The National Homebuyers Fund: This is a non-profit public benefit corporation. The goal is to sponsor both first-time home buyers and repeat home buyers by covering approximately 5% of the purchase price of the house. This money can be applied toward a conventional USDA loan, VA loan, or FHA loan. The grant is forgiven about five years after the closing process has been completed. Renters do not apply for this program directly, but a mortgage company can apply on behalf of one of its clients.
    • Government grants: There are also government grants that can help people qualify for mortgages by covering some of their expenses. Some of the grants are as small as a few hundred dollars, while others can be a few thousand dollars. Keep in mind that every grant program is different, so it is important to look at the details of the government grant before deciding if it is an option for you.

    These are just a few of the many programs available. Grant programs come in many shapes and forms, so be sure to take a look at the options in your area to see what you can qualify for. It could make it much easier for you to purchase a house.

    How to qualify for a first-time home buyer grant

    If you are interested in how to qualify for a first-time home buyer grant, there are several key points that you should keep in mind. First, you need to make sure that you can qualify for a home loan. Given that a grant is supposed to be used toward your home loan, you need to make sure that you can qualify for a loan before you start applying for a grant.

    Some of the requirements that you may need to meet if you are interested in qualifying for a home loan for the first time include:

    • Your credit score is high enough. The exact credit score you need will vary depending on your financial background, but you should try to have a credit score of about 660 before you start applying.
    • You have some cash available. Even though a grant may help you cover some of the expenses related to buying a house, it is unlikely that your grant is going to cover everything. Make sure you have resources available to help you with the closing process.
    • You can show that you have a stable job. Your lender wants to make sure that you have the money necessary to pay back the loan, and that means having a job that will provide you with a source of income.
    • Pay attention to the debt-to-income ratio. This is something that your lender will take a look at. After you take on a new mortgage, you should try to make sure that your DTI is 36% or less.

    If you are confident that you will qualify for a home loan, you can start looking at some of the grant programs available. Some of the qualifications you may need to meet if you are interested in taking out a grant include:

    • You meet the criteria put forth by the program. You may need to show that you come from a socially or economically disadvantaged background.
    • You meet residency requirements. If you are interested in taking out a loan in a certain area, you may need to prove your residency. A driver’s license, a utility bill, or a paystub might be enough.
    • You can show that you are a first-generation home buyer. Some programs might require you to provide proof that you’re a first-generation home buyer. There might be specific documentation that you need to provide.

    You should talk to your lender or your real estate agent if you are interested in learning more about some of the grant programs available.

    Where to apply for first-time home buyer grants?

    You need to make sure that you meet the first-time home buyer requirements, and that is where we can help you. At Griffin Funding, it would be our pleasure to walk you through the process of applying for government grants that can make it easier for you to purchase a house. For example, if you are wondering how to get a VA home loan, we can help you go through the qualifications and ensure that you meet the criteria.

    Or, if you are interested in taking out FHA loans that have been specifically designed for first-time home buyers, including CalHFA loans, it would be our pleasure to help you with that as well. We understand that there are a lot of grants available in the area for people who are purchasing a house for the first time, and when we combine this with the favorable terms put forth by the FHA, we can help you save a significant amount of money on the purchase price of the house. Do not hesitate to reach out to us to learn more about the different grant programs that we have available.

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    Griffin Funding can help you with the qualifications for a first-time home buyer grant

    If you are interested in buying a house for the first time, we understand that there is a lot of jargon involved. You might have a difficult time understanding what is going on, and that is why you need to partner with our team. At Griffin Funding, we have a tremendous amount of experience working with first-time home buyers just like yourself. A member of our team is always available to assist you, and we will work with you to make sure that we put you in the best position possible to be successful. To learn more about the different loan packages that we offer, contact us today to speak to our team.

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    Bill Lyons

    Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 22 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 10 years in business.