Buying your first home can be an intimidating process. There are many different types of mortgages and programs to consider. One little-known option is a first time home buyers grant. While these grants can vary by city and state, it’s important to be on the lookout for a first time home buyer grant. Here’s a few things to know:
A grant is free money
If you are eligible to receive a grant, you never have to repay the money you receive. It’s essentially a gift to assist you with the home buying process. Many first time home buyers are unaware that grants are an option, but those who take advantage of this opportunity are happy they discovered it.
Benefit by being a good neighbor
Depending on where you work and how you’ll impact a community, certain grants may be available on a federal and state level. In some cases, you can be eligible for over $14,000 in grants if you combine federal and state qualifications. This money can make a big difference in your monthly mortgage payments, and may even make a difference in the purchase price you can afford. Those eligible include firefighters, emergency medical personnel, police officers, teachers and other state or local employees.
Your grant status is private
There’s no need to avoid applying for a grant out of fear of stigma. No one will know if you’ve received the grant unless you tell them (or they do your accounting). You’ll benefit from financial assistance, and you’ll be able to contribute more to your home and community.
Grants may impact your taxes
If you qualify for certain grants, there may be tax implications. Sometimes, qualifying for a grant means you also qualify for other tax advantages. Other times, it may increase your taxes. It’s important that you consult with a professional tax advisor to see how receiving a grant may impact your finances.
Purchase a home sooner
Instead of waiting to save extra money, a grant may enable you to accelerate the home buying process. The sooner you find available grants and apply, the sooner you’ll become a first time homebuyer.
When buying your first home, it’s important to consider all the options available to you. Consult with a financial advisor, mortgage professional or real estate professional to gain the most knowledge of potential resources. Sometimes, a grant will be the best option, or you may be able to combine a grant with another low-interest or government subsidized loan. There’s no universal way to buy a house; there’s just may be a best way for you.