What are housing grants?
Housing grants are designed to combat rising housing costs by providing funds for down payment, closing costs and even home improvements. When buying a home you typically need 20% of the total price as a down payment in order to secure a loan for the remainder. But coming up with the money up front can be challenging. That’s why housing grants exist to help home buyers overcome this hurdle and make home ownership accessible.
But how do you access housing grants to help you buy a home? That is where we come in.
Housing Nonprofit is a registered 501(c)3 nonprofit with the very specific mission of connecting renters to Housing Grants to purchase a home. We do the work of maintaining all grants in a comprehensive database and provide a single form that allows you to check eligibility for all housing grants at once. The form takes about 2 minutes to fill out, there are no hard questions, and it’s absolutely free with no obligation to do anything else. This is a public service that is provided in accordance with our nonprofit mission statement.
Try it for yourself and see what assistance is provided in the area you want to live.
As an example, the Broward County Homebuyer Purchase Assistance Grant provides up to $80,000 to purchase a home. It does not need to be paid back and can be used towards down payment and closing costs. The only requirement is to live in the home for 15 years.
Who provides these funds?
Housing grant funds are primarily paid for by government agencies, private foundations, and local charities. However, there are plenty of housing grants offered by for profit organizations as well.
For example, the Broward County Homebuyer Purchase Assistance Grant is provided by the Broward County Housing Finance Division which is a government agency. Borrowers who make substantially more money than the area’s median income are not eligible for this program. However, high earners may be eligible for assistance in the form of subsidized fees, closing costs, or various credits provided by lenders who want your business.
Who qualifies for housing grants?
Housing grants are generally designed for low to middle income first time home buyers. Those who exceed the area median income by more than 200% can still get housing grants in the form of subsidized fees, no closing costs, or various credits provided by lenders who want your business.
Many housing grants are geography based and are available to home buyers residing in specific counties. Nearly all grants have some application and verification process along with a requirement to take a homebuyer education course. Eligibility may also be determined by your household income & credit history.
Types of Housing Grants and how do they work?
There are different types of housing grants available.
- Cash advances are the most flexible type of housing grants. They provide funds in the form of a cash advance that does not need to be repaid. These are designed to build community and foster economic growth. Therefore, in exchange for the funds, it is often common for them to contain a 3-year clause that states that the buyer must live in the home for three years or the grant must be repaid in part or in full.
- Deferred housing grants are those that do not charge interest and postpone the repayment of the original grant amount until you sell, refinance or the grant reaches the end of its term.
- Low interest housing grants are designed to provide the funds for the down payment upfront so that you can purchase a home sooner. They charge a low interest, which can then be repaid back monthly in installments which means you will be making two mortgage payments each month.
- Forgivable housing grants provide funds in the form of a loan at 0% interest which is forgiven after a period of time. For example, 20% of the loan amount is forgiven each year for five years. However, this is only true if you meet the condition of living in the home for 5 years until the loan is forgiven and make timely first mortgage payments.
- Tax grants are issued in the form of a certificate which allows homebuyers to claim a tax credit for a portion of the mortgage interest paid on their home loan. It helps to reduce the federal income tax owed by homebuyers resulting in increased disposable income and savings. Some states and counties issue mortgage credit certificates for up to $2,000 which offset federal income tax bills dollar-for-dollar.
How to find housing grants to buy your home?
Housing Nonprofit is a registered 501(c)3 nonprofit with the specific mission of connecting renters with housing grants to help them purchase a home. We maintain a central up-to-date database of housing grants along with the eligibility criteria to make this easily accessible for anyone across the country. Based on the information you provide, we match you with the housing grants that you qualify for and help you secure funds to purchase a home.
Other sources for Housing Grants include the U.S. Department of Housing and Urban Development (HUD) which maintains a semi-complete list of programs, listed by state, county, and city. This list is rather limited and does not include all housing grants from other government entities, nonprofits, and private institutions. Nor will these be updated as frequently as the database provided by Housing Nonprofit. Additionally, it leaves it up to the user to research the eligibility criteria which can make the process difficult. These circumstances are the very reason Housing Nonprofit was founded to make the process easier for anyone seeking to participate in Housing Grant programs.
How long does it take?
As soon as you submit the form and schedule a call, we will email you the results of the housing grants that you qualify for. On our scheduled call, we’ll work together to identify the housing grant or combination of grants that best suits your specific needs. We’ll help address any questions or concerns you may have, and check off any requirements to obtain the funds. Grants are allocated on a first-come, first-served basis, so taking action today does increase your chances of accessing the funds.