looking for grants for first time homebuyers?

Question

I am looking at grants to help me purchase my first house and was wondering if anyone has herd of this site FreeGrantSearch.com? I go to it and they say that x amount of dollars is available in my area and that I might qualify for. They only charge shipping which is around 8.00. If anybody knows anything about this please let me know

Answer 1

Avoid that website. They are simply out to scam you. The government does not give out grants for first time homebuyers, only low cost loans.

Even Housing and Urban Development (HUD) does not offer grants to individuals, whether for buying a home or repairing a home
http://www.hud.gov/grants/index.cfm...

"While HUD does not offer direct grants or loans to individuals, we do work through local governments and non-profit organizations to make financial assistance and counseling available."

There are low cost government housing loans available, but not grants unless you are afflicted with AIDS for example (14.241 Housing Opportunities for Persons with AIDS http://12.46.245.173/pls/portal30/CATALOG.PROGRAM_TEXT_RPT.SHOW?p_arg_names=prog_nbr&p_arg_values=14.241 )

You can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov - these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support your purposes. You can find grants for housing on this page

http://12.46.245.173/pls/portal30/CATALOG.FUNCTIONAL_PROGRAM_TXT_RPT.SHOW?p_arg_names=func_cat_cd&p_arg_values=ML

HUD has a program called Homeownership Voucher Program that can help you with the monthly mortgage and other homeownership expenses http://www.hud.gov/offices/pih/programs/hcv/homeownership/

You may want to check with the non-profit organization called Nehemiah Corporation of America http://www.nehemiahcorp.org/ which helps low income families buy their homes

Answer 2

You have alot of information that has been given to you - and here is some more information to think about.

Check out these websites: You can download and print off the the first time home buyer booklet.

Go to these websites

http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

Also, what is your middle credit score, if you have 580 or higher, you can get 100 percent financing. Lenders do look at 2 years job time, income, and 2 years rental history. There are alot of factors to consider. If you go with a FHA loan, FHA has MI included. (With a 580 + you will be going sub-prime the rates are higher by about a 1 percent, but you have no MI. (MI is mortgage insurance in case you default on the loan, it is a way for lenders to have added insurance. It is not the same as Home Owners insurance, ok) VA loans do not have MI insurance.

Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are a lot of factors involved.

With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true....

Lenders look at the middle score to qualify a person - With a 580 or higher you can get a 100 percent 1 loan. If your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher

When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

There are also the USDA Garanteed Program and the USDA Direct Program. The Direct Program. On the Direct program, your payments may be subsidized. Check out the link below:

Welcome to the USDA Income and Property Eligibility Site

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Copy and paste it to the www.

Answer 3

Hey - $8.00 is still $8.00. My thinking is that a genuine entity for low / no interest government first-time loans would make their money in other ways, not by getting small chump change from hits on their site.

Like others have said, you won't find grants, but lower interest loans.

A word of caution: For the most part, when you go to SELL that house you got for next to nothing, most of the money you make will have to go back to the government to cover the subsidized interest. Check it out carefully and ask many many questions before you commit. Good luck.

Answer 4

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.

If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.

If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.

Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).

Answer 5

There are government grants for first time homebuyers, but they don't just give you money. They are designed to get you an interest rate well below the current market rates. The rates vary by state, and your best bet would be to talk to a realtor about the grants available in your state.

Answer 6

Check with the mortgage lender that you are going to use. Many have specific programs designed for first time buyers. I would be a bit leary of sites that charge for information like this.

Answer 7

touch a close-by Citimortgage on your section and ask for the Lending representative who focuses on Down charge courses. I paintings for Citimortgage in California and paintings with many Counties and city courses in my section. i comprehend there are a number of courses accessible in manhattan. you purely want the astonishing individual that might actually assist you come across the courses and that they're going to examine the eligibility standards.

Answer 8

hmmm. i never heard of this but if there are grants out there for first time home buyers then i need to see some answers

Answer 9

Don't waste your money on them. Go to http://www.grants.gov/ to see what the federal government has.

Answer 10

Most likely its spam....stay away.