First-Time Homebuyer Grants
If you are a first-time homebuyer looking to make your entry into the real estate market, you might benefit from government grants that specifically assist new buyers. These first-time homebuyer grants are designed to financially assist those looking to make their first purchase or, within certain parameters, to make another purchase after a specific amount of time out of the market. The aim of this financial assistance is to encourage the growth and sustainability of the real estate market and to stimulate the economy. A strong real estate market helps local communities in many ways, which can help the national economy to stabilize or to grow and improve.
In addition to grants, which do not require you to pay back any initial amount provided, there are other options for first-time homebuyers that assist with the financial burden of a new home purchase and the maintenance or repairs of that home. Typically, that assistance comes in the form of loans or tax credits, which can also facilitate your homeownership to ensure you can be a long-term homeowner.
To apply for grants or loans for which you are eligible, you will have to contact your local Public Housing Authority (PHA), your county or state housing authorities, or the federal housing representatives at the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA), as applicable for the specific program you seek.
Approval For Section 8
First-time homebuyers are not necessarily just individuals who have never bought a home before. For these types of grants and programs, first-time homebuyers can cover a variety of different types of buyers. The following situations will qualify for first-time buyer status for these grants:
- If you have never bought a home before, then you will definitely qualify as a first-time homebuyer.
- If you or your spouse has not been a homeowner in a primary residence for the past three years, then then you can qualify as a first-time buyer as a married couple.
- If you are a single parent or homemaker who used to own a home when you were married, then you will qualify as a new, first-time buyer on your own.
- If you owned a property, but it did not comply with building codes and cannot be fixed to meet those codes for less than the cost of building a new home, then you also might qualify as a first-time buyer.
What Are First-Time Homebuyer Grants?
First-time homebuyers can benefit from a variety of grant or loan offers designed to facilitate the purchase process as well as the maintenance or repair of a home. These financial assistance programs benefit society at large by encouraging a strong real estate market and therefore by stimulating the local economy. To qualify for a first-time buyer grant, you must meet specific requirements and fulfill standards that indicate your ability to purchase and own a home.
First-time homebuyer grants help with the down payment, the maintenance or the repairs necessary on a primary residence. In Ohio, you can use the Ohio Housing Finance Agency’s First-Time Homebuyer program to receive a tax credit of 40 percent of the home mortgage interest up to $2,000.
Types Of Assistance Available
The type of assistance you can receive for your home purchase will depend upon a number of variables, including your income, your credit history, your family status, your professional background and more. If you served in the military or if you meet other professional assistance programs you may also be eligible for housing grants and other types of housing assistance. Some assistance is offered as a grant, especially for lower income families in need, while other types of assistance is offered as a preferred loan with competitive rates and low down payment requirements.
The type of housing assistance you can obtain as a first-time homebuyer in Ohio will be predicated on your personal details, so be sure to thoroughly research all the options to see which programs you might qualify for before making any purchase decisions.
There are many types of grants or financial assistance programs available for first-time homebuyers in order to purchase, maintain and repair their homes. Here are a few options to further consider:
- Federal Housing Administration (FHA) Loans are offered by the federal government and enable first-time homebuyers to put as little as 3.5 percent down on a new home. These are not grants these loans do need to be repaid but they are offered to enable first-time buyers a chance with financial assistance.
- Ohio Housing Finance Agency (OHFA) assistance is the primary name for all housing assistance you might obtain. Under the OHFA, which is provided via FHA funding, you can further finance your home purchase or maintenance.
- Veterans Affairs (VA) Home Loans help veterans to purchase a home and special grants help wounded veterans to adapt homes to any new physical accessibility needs.
- HUD Homes, also called HUD Real Estate Owned (REO) Property, can be purchased if previous owners have defaulted on their loans. You can use an FHA loan to buy a HUD home.
- Grants for Grads is a specific grant program in Ohio that encourages graduates of higher education to purchase a home and stay in Ohio for a minimum of five years in order to receive and maintain the financial assistance offered. These grants can be used in conjunction with FHA loans, further enabling recent graduates to purchase a home in Ohio.
These grants and assistance programs can sometimes be used together, while others will only be applicable as a single program. Be sure to research your options before you apply for or use any of these programs, since using a different program or grant opportunity might be more beneficial in your long-term as a homeowner and taxpayer.